Following the announcement, shares of VBL on Friday surged almost 9 per cent to a high of Rs 750.40 per scrip on the BSE. On a closing basis, the shares rose by 1.74 per cent to Rs 700.50.
"In order to further unlock the potential of Brand Tropicana, we have entered into a strategic partnership with VBL for ramping up the selling and delivery infrastructure for our premium go-to-market (GTM) channel in their territories across north and east India," said Deepika Warrier, Vice President, Nutrition Category, PepsiCo India.
The portfolio of products on the premium GTM channel includes Tropicana Juices (100%, Delight, Essentials) along with sports drink Gatorade and Quaker Value Added Dairy.
So far, for the north and east, this portfolio of products used to be serviced directly by a PepsiCo GTM channel, said a PepsiCo spokesperson.
In a regulatory filing to the BSE, VBL on Thursday evening informed that the partnership is part of its strategy to expand its product portfolio through its relationship with PepsiCo.
"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," Ravi Jaipuria, Chairman, Varun Beverages, said in the BSE filing.
"PepsiCo and VBL plan to ramp up selling and delivery infrastructure, with a particular focus on rest of urban and rural market expansion. For the rest of India, this portfolio of products will ride on the PepsiCo GTM system for core carbonated beverage in those geographies," added Warrier.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
