Varun Beverages surges on tie up with PepsiCo for Tropicana

The stock rallied 9% to Rs 750 on BSE in early morning trade on back of heavy volumes after the company and PepsiCo India have decided to enter into a strategic partnership for Tropicana

Varun Beverages has rallied 9% to Rs 750 on BSE in early morning trade after the company and PepsiCo India decided to enter into a strategic partnership for Tropicana.

Varun Beverages (VBL), a key player in the beverage industry, on Thursday after market hours announced that it has further deepened its relationship with PepsiCo by entering into a strategic partnership for the larger Tropicana portfolio along with Gatorade and Quaker Value-Added Dairy in territories across North and East India.

This is part of VBL’s strategy to expand its product portfolio through its valued relationship with PepsiCo, it added.

“With VBL already holding manufacturing, sales and distribution rights for Tropicana Slice and Tropicana Frutz in North and East, we are confident that the addition of this portfolio will help expand the franchise for Brand Tropicana in these territories,” said Ravi Jaipuria, chairman, VBL.

The stock hit a record high of Rs 762 on January 2, 2018 in intra-day trade. At 09:27 AM; it was trading 7% higher at Rs 735 on BSE, as compared 0.35% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than 10-fold with 1.2 million shares changed hands on BSE so far, the exchange data shows.