Asahi Group Partners with Varun Beverages to Introduce CALPIS and Enter India’s Fast-Growing Non-Alcohol Beverage Market
Asahi Group Holdings, Ltd. has announced a strategic partnership with Varun Beverages Limited, one of India’s largest beverage manufacturers and distributors, to introduce the iconic CALPIS brand to Indian consumers. The agreement marks a significant milestone for the Japanese beverage giant, representing its first entry into India’s non-alcoholic and non-carbonated beverage segment and further strengthening its global growth strategy.
Under the newly signed business alliance and franchise agreement, Asahi Group and Varun Beverages will collaborate to launch CALPIS-branded beverages across India beginning in the second half of 2026 or later. The initial product lineup will include ready-to-drink dairy-based beverages available in two flavors—Original and Mango—designed to appeal to local consumer preferences while preserving the unique characteristics that have made CALPIS a beloved beverage in Japan for more than a century.
The partnership combines Asahi Group’s expertise in product innovation and brand development with Varun Beverages’ extensive manufacturing capabilities and nationwide distribution network. Together, the companies aim to capitalize on the rapid growth of India’s beverage market and introduce a distinctive product category to millions of consumers.
Bringing a Century-Old Japanese Brand to India
CALPIS occupies a unique place in Japan’s beverage history. First introduced more than 100 years ago, the fermented milk-based drink became Japan’s pioneering lactic acid beverage and has remained one of the country’s most recognizable and trusted brands.
Known for its sweet and slightly tangy flavor profile, CALPIS is made using a fermentation process that creates a refreshing taste distinct from traditional soft drinks or dairy beverages. Over the years, the brand has expanded to include concentrated products for home preparation as well as convenient ready-to-drink options sold in domestic and international markets.
The Indian launch represents one of the most significant international expansions for the CALPIS brand in recent years. By introducing the product in a ready-to-drink format, Asahi and Varun Beverages aim to provide consumers with a convenient and refreshing beverage option that aligns with growing demand for non-carbonated drinks.
The inclusion of a mango flavor reflects an effort to tailor the product to local tastes, leveraging one of India’s most popular fruit flavors while maintaining the brand’s distinctive dairy-based identity.
Strategic Partnership Built on Complementary Strengths
The alliance has been structured to capitalize on the expertise of both companies.
Asahi Group Holdings will lead product development efforts and provide technical support related to manufacturing processes, quality standards, and beverage formulation. Through its local subsidiary, the company will also oversee marketing activities and brand management to ensure that CALPIS establishes a strong identity in the Indian market.
Varun Beverages, meanwhile, will be responsible for manufacturing, distribution, and sales operations. With decades of experience producing and delivering beverages across India and other international markets, the company is well positioned to introduce CALPIS efficiently and at scale.
The arrangement allows each partner to focus on its core competencies. Asahi can concentrate on innovation, product quality, and brand-building, while Varun Beverages leverages its operational expertise and extensive market reach to maximize distribution and consumer access.
Industry analysts view the collaboration as a strategic fit that could accelerate growth for both organizations while helping establish a new beverage category within India’s rapidly evolving consumer landscape.
India’s Expanding Beverage Opportunity
India has become one of the world’s most attractive beverage markets, driven by demographic growth, urbanization, rising disposable incomes, and changing consumer lifestyles.
With a population exceeding 1.4 billion people, India is now the world’s most populous nation and represents one of the largest opportunities for beverage companies seeking long-term growth. According to GlobalData, the country’s non-alcohol beverage market expanded approximately 2.3 times in volume over the decade leading up to 2025, reflecting increasing consumer demand across multiple beverage categories.
Several factors continue to support this growth trajectory. A rapidly expanding middle class, greater purchasing power, increasing health awareness, and growing demand for convenient ready-to-consume products are reshaping consumer preferences throughout the country.
The shift toward non-carbonated beverages has been particularly notable as consumers seek alternatives that offer refreshment, taste, and perceived health benefits. Dairy-based beverages, functional drinks, and flavored non-carbonated products have emerged as important growth categories, creating opportunities for innovative brands such as CALPIS.
By entering the market through a strategic local partnership, Asahi aims to position itself to capture a share of this expanding demand while introducing a differentiated offering that stands apart from traditional carbonated soft drinks.
Leveraging Varun Beverages’ Market Leadership
Founded in the 1990s, Varun Beverages has grown into one of the largest beverage companies in India and a key partner within the global PepsiCo system. The company is currently the second-largest PepsiCo franchisee outside the United States and operates 53 production facilities across India and international markets.
Its extensive manufacturing infrastructure, logistics capabilities, and distribution network reach millions of retail outlets and consumers throughout urban and rural regions. These capabilities are expected to play a crucial role in ensuring the successful rollout of CALPIS across the country.
For Varun Beverages, the partnership also offers an opportunity to diversify its product portfolio by introducing a globally recognized brand that occupies a unique position within the non-carbonated beverage category.
Leadership Perspectives on the Partnership
Atsushi Katsuki, President and Group CEO of Asahi Group Holdings, highlighted the significance of the collaboration and the potential of the Indian market.
“We are delighted to introduce the CALPIS brand, which has been enjoyed in Japan for more than a century, to consumers in India,” Katsuki said. “India is one of the world’s most dynamic and promising beverage markets, and we are pleased to partner with Varun Beverages, a leading beverage company with strong manufacturing capabilities and extensive market reach.”
He emphasized that combining the strengths of both companies will help create new value for consumers while supporting sustainable growth and long-term corporate value creation.
Varun Jaipuria, Executive Vice Chairman of Varun Beverages Limited, also expressed enthusiasm about the alliance.
He noted that CALPIS brings more than a century of heritage, innovation, and consumer trust to the Indian market. According to Jaipuria, the partnership aligns with Varun Beverages’ strategy to build strong positions in emerging beverage categories with significant long-term growth potential.
Supporting Long-Term Growth
The CALPIS launch aligns with Asahi Group’s medium- and long-term management strategy, which focuses on strengthening existing businesses while expanding into new product categories and geographic markets. Through partnerships with established local companies, the group aims to accelerate market entry, reduce operational complexity, and create sustainable growth opportunities.
As the company continues to broaden its global footprint, India represents a key strategic market where rising consumer demand and favorable demographics offer substantial potential. With the support of Varun Beverages, Asahi Group is positioning CALPIS to become a prominent player in India’s evolving beverage landscape and a cornerstone of its future growth ambitions in the region.
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