Carlsberg is extending its established partnership with PepsiCo into Georgia and Armenia, broadening its presence across the South Caucasus.
Under the agreements, Carlsberg will manage the production, commercialisation and distribution of PepsiCo’s soft drinks portfolio in both countries. The expansion will diversify Carlsberg’s beverage offering, reinforce its regional route to market and create a broader operating base.
Carlsberg Group will acquire PepsiCo bottling operations in Georgia and Armenia, building on a relationship that already covers markets across Europe, Central Asia and Southeast Asia. The transactions follow the recently announced expansion into Azerbaijan, allowing the company to establish what it considers a significant South Caucasus cluster.
The move reflects wider food and beverage industry trends, as major beverage companies increasingly combine manufacturing, distribution and commercial capabilities across multiple categories and territories. Rather than concentrating on individual brands or markets, businesses are developing integrated platforms that can support broader portfolios and more efficient routes to consumers.
Building a stronger South Caucasus platform
Carlsberg has agreed to purchase Iberia Refreshments in Georgia and JI Pepsi Cola Bottler Armenia from Revery, the current owner and operator of both PepsiCo bottling businesses.
Completion of the Armenian acquisition depends on receiving government regulatory approval. Once both transactions close, Georgia and Armenia will become part of Carlsberg’s operating market network.
Carlsberg already has a presence in neighbouring Azerbaijan, where it is expected to begin bottling PepsiCo products in January 2027. Managing the three countries as a connected regional cluster could give Carlsberg greater scope to coordinate manufacturing, sales, logistics and distribution.
The development follows a broader expansion of the Carlsberg-PepsiCo relationship. Earlier this year, Carlsberg announced plans to become PepsiCo’s bottler in Denmark, Finland and the three Baltic states from 2029. Before the latest South Caucasus agreements, the partnership was expected to cover 14 markets. The additions of Georgia and Armenia will increase the total to 17.
This type of regional consolidation is also consistent with wider food manufacturing trends and food distribution trends, as operators seek scale, shared infrastructure and greater flexibility across neighbouring markets.
Shared capabilities and commercial reach
PepsiCo gains access to Carlsberg’s established local infrastructure, customer relationships and route-to-market capabilities. Natalia Filippociants, SVP and GM, Internal Beverages Europe at PepsiCo, said the expanded relationship brings together PepsiCo’s brand portfolio and Carlsberg’s operating strengths to create a more effective route to market and support future growth.
For Carlsberg, the agreements support its long-term transition from a predominantly beer-focused company to a broader beverage operator.
Nikos Kalaitzidakis, Carlsberg’s executive vice president for Central and Eastern Europe & India, said the expanded business would provide a platform to develop a full multi-beverage portfolio across the region.
The arrangement enables Carlsberg to add internationally recognised soft drink brands to its beer range while making use of existing production assets, distribution networks, sales teams and customer connections. It also demonstrates how food and drink industry innovation increasingly involves business-model development as well as new products and food processing technology.
Expanding beyond beer
The South Caucasus transactions form part of Carlsberg’s wider strategy to increase its participation in soft drinks.
Through bottling agreements with PepsiCo and other commercial relationships, the company has been building exposure to categories beyond beer. Carlsberg has previously pointed to the potential of its route-to-market, particularly in the on-trade, to support stronger growth for PepsiCo products. It has also identified possible benefits from cross-border manufacturing, coordinated product launches and the management of markets as connected regional clusters.
Georgia, Armenia and Azerbaijan offer another opportunity to apply that strategy. A combined footprint could enable Carlsberg to align production planning, logistics, sales execution and portfolio development more effectively than operating each market independently.
A larger regional base may also help the company distribute investment across higher volumes, share specialist capabilities and provide PepsiCo with a consistent operating partner throughout the South Caucasus. At the same time, the arrangement gives Carlsberg a stronger platform for responding to food and drink consumer trends and evolving food and drink regulations in the markets where it operates.
Benefits for the wider beverage business
The most immediate advantage for Carlsberg is greater portfolio diversification. PepsiCo contributes a well-established soft drinks range, while Carlsberg supplies local manufacturing capacity and commercial infrastructure. Together, the businesses can serve more consumption occasions and offer customers a wider selection through one route-to-market.
The model also increases Carlsberg’s exposure to non-beer categories, supporting its ambition to grow a broader beverages operation. That diversification may become increasingly important as food and drink marketing strategies focus on occasion-based consumption, portfolio breadth and stronger customer partnerships.
The Azerbaijan agreement highlights the potential scale of the approach. Carlsberg is expanding its Xirdalan brewery to manufacture PepsiCo products, and the company expects the PepsiCo partnership to double its business in Azerbaijan.
As the regional network develops, the group will also need to manage the operational demands associated with food and drink packaging, changing food and drink sustainability expectations and continued investment in manufacturing and distribution. Even so, the new agreements underline Carlsberg’s ambition to build a multi-beverage platform with broader reach across the South Caucasus and beyond.