Pepsi Co. and Varun Beverages strategic partnership to expand Tropicana Brand

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Pepsi Co., one of the leading beverages company in the food and beverages industry is now planning to diversify its portfolio further to sell and distribute the premium products of the Varun Beverages (VBL) brand such as Tropicana Juices, Quaker Dairy, and Gatorade that accounts for near 80% of the juice market.

VBL who is already the bottling partner of Pepsi Co. announced last evening that they are planning to strengthen their relationship with the company, by entering into a distribution agreement with the company which will cover the North and East India territories.

The juice market which is currently valued at around Rs. 2,000 crores is surely going to increase by leaps and bounds as there is a shift in the consumer preferences from soft drinks to the health beverages. The soft drinks market is stagnant due to this shift and hence this distribution agreement is expected to double the sale for the Tropicana juice. Till now, Pepsi Co. could only reach up to 90000 outlets for both north and east regions but after the agreement, the sales are expected to go double by 2020 and brand the product as the No.1 fruits and veggies brand by next decade.

The partnership announcement led to percentage hike in share value of Varun Beverages in BSE early morning and now the news is doing the rounds everywhere. Both the companies are quite confident with their decision and are hoping to achieve the goal of expanding the brand.

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