Highlights

• Varun Beverages extended PepsiCo bottling and trademark agreement validity until April 2049.
• Revised agreement removed earlier restriction limiting VBL to PepsiCo-focused business activities.
• VBL shares gained over 2 percent intraday following revised agreement announcement disclosures.

Shares of Varun Beverages Limited (NSE:VBL) remained in focus after the company announced revisions to its Exclusive Bottling Appointment and Trademark License Agreement with PepsiCo.

The stock traded around Rs 533.60 on May 22, 2026, up 2.64 percent intraday on the National Stock Exchange of India Limited. Varun Beverages informed exchanges that the revised agreement was executed on May 21, 2026.

Source: TradingView

Agreement Extended Till 2049

According to the regulatory filing, the revised Exclusive Bottling Appointment agreement for India extends the partnership validity until April 30, 2049. The earlier agreement term was valid until April 30, 2039.

The company stated that the revised agreement also removed an earlier condition restricting Varun Beverages from carrying out activities other than operating as a special purpose vehicle for PepsiCo business.

The filing was disclosed under Regulation 30 of the SEBI Listing Regulations and circulated to both the BSE Limited and NSE.

PepsiCo Partnership Remains Central to Operations

Varun Beverages has been associated with PepsiCo since the 1990s and operates as one of PepsiCo’s largest franchise bottlers globally. The company manufactures and distributes carbonated soft drinks, non-carbonated beverages and packaged drinking water products.

Its portfolio includes brands such as Pepsi, 7UP, Mirinda, Mountain Dew and Tropicana.

The revised agreement announcement comes as investors continue tracking long-term visibility in the company’s bottling and distribution operations linked to PepsiCo-owned beverage trademarks.

Source: Analysis by Kalkine 

Stock Performance Outperforms NIFTY NEXT 50

Varun Beverages shares delivered returns of 5.90 percent over one week and 7.79 percent over one month, outperforming the NIFTY NEXT 50 during both periods. On a one-year basis, the stock gained 13.62 percent, while five-year returns stood above 500 percent according to exchange data. The stock also recorded an intraday high of Rs 538.00 and a low of Rs 526.60 during Thursday’s trading session.

Source: NSE

Key Risks Investors Should Track

• Dependence on PepsiCo brands may affect revenue concentration exposure.
• Commodity cost inflation could impact beverage manufacturing margins.
• Seasonal demand fluctuations may influence quarterly sales performance.
• Regulatory changes in beverage and sugar industries remain important risks.

Summary

Varun Beverages (NSE:VBL) shares gained after the company announced an extension of its PepsiCo bottling and trademark agreement until 2049. The revised agreement also removed restrictions limiting VBL to PepsiCo-focused business activities. Investors may continue monitoring beverage demand trends, commodity prices, distribution expansion and developments related to the company’s long-term partnership with PepsiCo.

FAQs

Q: Why did Varun Beverages shares rise on May 22, 2026?
A: Investors tracked the extended PepsiCo bottling agreement and revised operational flexibility disclosed through stock exchange filings.

Q: Till when has Varun Beverages extended its PepsiCo agreement?
A: The revised Exclusive Bottling Appointment agreement remains valid until April 30, 2049, according to company disclosures.

Q: Which beverage brands are produced by Varun Beverages?
A: The company manufactures and distributes Pepsi, 7UP, Mirinda, Mountain Dew, Tropicana and packaged water products.