Local beverage giant eyes snack market

The second-largest PepsiCo franchise bottler globally, Varun Beverages, has entered into an agreement with PepsiCo to manufacture and distribute snacks in two Southern African Development Community Countries, Zimbabwe and Zambia.

The company, founded in 1995 and headquartered in India, has operations in India, Nepal, Sri Lanka, Zambia and Zimbabwe.

According to a recent statement, Varun Beverages plans to establish franchising opportunities for snack production and sales through its subsidiaries, Varun Foods (Zimbabwe) Pvt and Varun Beverages (Zambia) Ltd.

Through these subsidiaries, the company aims to commence manufacturing, distribution, and sales of “Simba Munchiez,” a popular PepsiCo snack brand. Production is expected to start in Zimbabwe by October 1, 2025, and in Zambia by April 1, 2026,” the company said.

Varun said the snack market is estimated to reach $177 million in Zimbabwe and $156 million in Zambia by 2024, with consistent growth anticipated.

The proposed manufacturing facilities are expected to have an annual capacity of around 5 000 tonnes, catering to various product variations to meet consumer preferences.

Varun Beverages entered Zimbabwe in 2018, selling Pepsi’s soft drink brands such as Mountain Dew, Mirinda and 7-Up.

The company commissioned a $30 million plant in Harare in 2018 and invested at least $150 million in the country between 2018 and 2023.

Beyond beverages, Varun Beverages expanded its portfolio in 2022 by striking a deal to sell PepsiCo snacks, including Lay’s, Doritos, and Cheetos, in Morocco.

The company’s African operations currently account for around 15 percent of its revenues.

In the snacks business, Varun Beverages will compete with National Foods, the largest food producer in the country, which makes popular brands such as ZapNax snacks, Cairns’ Willards, and Popticorn.-ebusinessweekly