Jubilant FoodWorks to acquire Coca-Cola's sparkling beverages, other products

Jubilant FoodWorks on Thursday said it has signed a pact with Coca-Cola India to purchase a range of sparkling beverages and other products from its authorised bottlers. The agreement also includes provisions for conducting marketing activities for these products, aligned with JFL’s franchised and owned brands, the company says in an exchange filing.

The sparkling beverages portfolio of Coca Cola includes its carbonated soft drinks such as Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Sprite, Fanta, and Thums Up, among others. However, it remains unclear which sparkling beverages will be manufactured and marketed by Jubilant FoodWorks in India, as part of the new MoU between the two companies.

The company, in its exchange filing, stated that a Master Agreement will be executed between the parties, based on the principal terms and conditions outlined in the MoU. However, details of the MoU have not been disclosed yet.

Just two weeks ago, Jubilant FoodWorks’ parent company, Jubilant Bhartia Group, had announced the acquisition of a 40% stake in Coca-Cola’s bottling subsidiary, Hindustan Coca-Cola Beverages (HCCB). The stake, valued at ₹12,500 crore, places HCCB’s total valuation at ₹31,250 crore. This move established Jubilant Bhartia Group as a significant player in the bottling industry, and the latest agreement with Jubilant FoodWorks will further strengthen the group’s position in the broader beverage market.

The master agreement is expected to be executed from April 1, 2025, which will include terms and conditions pertaining to size and scale of such arrangements.

“After execution of the Master Agreement, The Coca-Cola Company authorized bottlers will become suppliers of sparkling beverages and other products as set out in the MoU to JFL. The arrangement will help JFL enhance its consumer offerings,” the company said in its exchange filing.

Currently, the Jubilant FoodWorks group operates five brands across emerging markets, including franchise rights for three global brands—Domino’s, Popeyes, and Dunkin’—and two proprietary brands including Hong’s Kitchen, an Indo-Chinese QSR in India, and COFFY, a café brand in Turkey. The company reported a revenue of ₹1,954 crore, marking a 42.8% year-on-year growth, with an EBITDA of ₹398 crore and a 20.4% margin in second quarter of this financial year.