Non-Alcoholic Beverage Asahi Group Enters India’s Non-Carbonated Beverage Market
Japanese beverage giant Asahi Group Holdings has announced a strategic business alliance with Varun Beverages Limited, one of India’s leading beverage manufacturers and distributors, to introduce the iconic CALPIS brand to Indian consumers. The partnership marks Asahi Group’s first entry into India’s non-alcoholic, non-carbonated beverage segment and represents a significant milestone in the company’s international growth strategy.
Under the newly signed franchise agreement, CALPIS-branded products will be manufactured, distributed, and sold in India by Varun Beverages. The first products are expected to launch during the second half of 2026 or later, bringing a distinctive fermented milk-based beverage experience to one of the world’s largest and fastest-growing consumer markets.
The initial product lineup will include ready-to-drink dairy-based beverages available in two flavors—Original and Mango. Designed to cater to local tastes while preserving the unique character of the CALPIS brand, these offerings are expected to introduce Indian consumers to a beverage category that combines refreshment, flavor, and a long-standing heritage.
Bringing a Century-Old Japanese Brand to India
CALPIS is one of Japan’s most recognized beverage brands and has been enjoyed by consumers for more than 100 years. Known for its sweet and tangy taste, the fermented milk-based drink pioneered an entirely new beverage category when it was first introduced in Japan. Over the decades, CALPIS has evolved into a diverse product portfolio that includes concentrated beverages for home preparation as well as convenient ready-to-drink options.
The brand has built a loyal consumer base across Asia and other international markets thanks to its distinctive flavor profile and reputation for quality. By entering India, Asahi Group aims to introduce a product with strong heritage and differentiation into a market where consumers are increasingly seeking new beverage experiences and healthier alternatives to traditional soft drinks.
The launch also aligns with changing consumer preferences in India, where growing awareness of health and wellness is influencing purchasing decisions. Dairy-based beverages with unique taste profiles are gaining attention, creating an opportunity for CALPIS to establish a strong presence in the country.
Complementary Strengths Drive the Partnership
The collaboration between Asahi Group and Varun Beverages combines the strengths of both companies to accelerate the growth of CALPIS in India.
Asahi Group Holdings will lead product development and provide technical expertise to ensure that CALPIS products manufactured in India maintain the quality and characteristics that have made the brand successful internationally. In addition, Asahi’s local subsidiary will oversee marketing initiatives and brand management activities to build awareness and drive consumer engagement.
Varun Beverages, meanwhile, will be responsible for manufacturing, distribution, and sales operations. With an extensive production network and deep market penetration across India, the company is well-positioned to introduce CALPIS to consumers nationwide.
This division of responsibilities allows Asahi Group to focus on innovation, product quality, and brand-building while leveraging Varun Beverages’ established infrastructure and operational expertise. For Varun Beverages, the alliance adds a unique beverage category to its portfolio and strengthens its ability to meet evolving consumer demands.
India Offers Significant Growth Potential
India has emerged as one of the most attractive beverage markets globally, supported by strong demographic and economic fundamentals. With a population exceeding 1.4 billion people, the country represents a vast consumer base and substantial long-term growth opportunities.
According to data from GlobalData, India’s non-alcoholic beverage market expanded approximately 2.3 times in volume during the decade leading up to 2025. This rapid growth has been fueled by urbanization, rising disposable incomes, changing lifestyles, and increasing demand for convenient packaged beverages.
Industry observers expect these trends to continue over the coming years. Population growth, the expansion of the middle class, and heightened health consciousness are all contributing to increased consumption of premium and differentiated beverage products.
For Asahi Group, entering India at this stage provides an opportunity to participate in one of the most dynamic beverage markets in the world. By introducing CALPIS through a trusted local partner, the company aims to establish a sustainable platform for long-term growth.
Leveraging Varun Beverages’ Market Leadership
Founded in the 1990s, Varun Beverages has grown into one of the largest beverage companies in the region and is widely recognized as PepsiCo’s second-largest franchise bottler outside the United States.
The company operates an extensive manufacturing footprint, with 53 production facilities across India and international markets. Its vast distribution network reaches millions of retail outlets, enabling efficient delivery of products to consumers across urban and rural regions.
This strong operational foundation was a key factor in Asahi Group’s decision to partner with Varun Beverages. By utilizing the company’s manufacturing capabilities and nationwide reach, Asahi can accelerate the rollout of CALPIS while minimizing the challenges typically associated with entering a new market.
Executives Express Confidence in the Collaboration
Commenting on the partnership, Atsushi Katsuki, President and Group CEO of Asahi Group Holdings, emphasized the significance of bringing CALPIS to India.
He noted that the company is excited to introduce a brand that has been cherished in Japan for more than a century to Indian consumers. Katsuki described India as one of the world’s most promising beverage markets and highlighted Varun Beverages’ strong manufacturing expertise and extensive market presence as critical strengths that will support the brand’s success.
According to Katsuki, the combination of Asahi Group’s product innovation capabilities and Varun Beverages’ operational excellence is expected to create new value for consumers while contributing to the sustainable growth and long-term corporate value of both organizations.
Varun Jaipuria, Executive Vice Chairman of Varun Beverages Limited, also welcomed the alliance and underscored the opportunity represented by the CALPIS brand.
He stated that Asahi Group is globally recognized for its beverage expertise and portfolio of iconic brands. Jaipuria highlighted CALPIS’ century-long heritage and strong consumer trust, expressing confidence that the product has significant potential in India.
He added that the dairy-based beverage category aligns with Varun Beverages’ long-term growth ambitions and that the company looks forward to leveraging its manufacturing and distribution capabilities to establish CALPIS as a leading brand among Indian consumers.
Supporting Asahi’s Long-Term Growth Strategy
The partnership forms part of Asahi Group’s broader medium- to long-term management strategy, which seeks to balance the growth of its core beer business with expansion into new beverage categories and markets.
As a global beverage and food company, Asahi continues to explore opportunities to diversify its portfolio and strengthen its international presence. Strategic partnerships with local companies play an important role in this approach, allowing the company to access new markets while benefiting from local expertise.
Through its collaboration with Varun Beverages, Asahi Group aims to build a strong foundation in India’s rapidly expanding beverage sector and unlock new opportunities for sustainable growth in the years ahead. With CALPIS set to make its Indian debut in 2026, the alliance represents a major step forward for both companies as they seek to capitalize on changing consumer preferences and the immense potential of the Indian market.
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