Shares of Varun Beverages (VBL) surged over 3% in early trading on Friday, May 22, 2026, reaching a fresh 52-week high. The significant gain followed an announcement that PepsiCo had extended its exclusive bottling agreement (EBA) with the company and lifted previous business restrictions.
PepsiCo Extends Key Bottling Agreement
Varun Beverages confirmed that PepsiCo has extended their 'exclusive bottling appointment and trademark license' for India. The new agreement pushes the expiry date from April 30, 2039, to April 30, 2049, providing a decade of additional operational certainty for VBL. This revised EBA became effective on May 21, 2026.
In addition to the extension, PepsiCo also removed earlier restrictions that limited Varun Beverages' activities solely to special bottling operations for the global beverage giant’s India business. Under the updated terms, VBL is now permitted to undertake any activity beyond its PepsiCo bottling responsibilities, opening new avenues for growth and diversification.
Market Reaction and Performance
Following the news, Varun Beverages stock climbed 3.45% to a new 52-week high of Rs 222.45, up from its previous close of Rs 219.40. The company's market capitalization stood at Rs 1.80 lakh crore. A total of 3.48 lakh shares were traded, generating a turnover of Rs 46.53 crore.
The stock has demonstrated strong performance recently, gaining 18% over the past three months and 13.64% in the last year. Over six months, shares rose 19.43%.
Varun Beverages operates as a key franchisee of PepsiCo, responsible for producing and distributing a wide array of carbonated soft drinks (CSDs), non-carbonated beverages (NCBs), and packaged drinking water under PepsiCo's trademarks across India.