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Tapiwanashe Mangwiro-Senior Business Reporter
Varun Beverages Limited will begin distributing PepsiCo snacks next week, with plans to manufacture the products when its local plant comes on line in October this year.
PepsiCo South Africa senior sales and market development manager for West, East and Central Africa, Mr Spencer Joyce said Varun Beverages had been appointed the exclusive distributor of its snacks including Lays, Doritos and NikNaks in Zambia and Zimbabwe, from February 1.
“This letter serves to confirm that Varun Beverages Limited has been appointed by PepsiCo South Africa (Pty) Ltd (formerly known as Simba (Pty) Ltd) as the exclusive distributor of PepsiCo Snacks, which includes but is not limited to, Simba, Lays, Doritos and NikNaks in the Republic of Zambia and the Republic of Zimbabwe, effective February 1, 2025,” said Mr Joyce.
Varun Beverages’ subsidiaries, VFZ Varun Foods Zimbabwe and Varun Beverages Zambia, will partner with PepsiCo to manufacture, distribute, and sell the snacks in their respective markets.
Following their initial agreement with PepsiCo in June 2024, Varun announced a planned US$7 million investment in Zimbabwe to produce PepsiCo snack brands, expanding their existing beverage portfolio.
Varun Beverages targets to complete the new line by October this year.
The new plant will have an annual production capacity of 5 000 tonnes. While the snacks are already available in Zimbabwe through imports, the local production will streamline distribution and potentially lower costs.
The investment aligns with Varun’s strategy to strengthen its foothold in Africa’s growing snacks market.
Citing industry data valuing Zimbabwe’s snack market at US$177 million annually and Zambia’s at US$156 million, Varun Beverages is poised to capitalise on the growing demand for packaged snacks in both countries.
The expansion across Africa, leveraging their established partnership with PepsiCo, will boost local production, decrease import expenses, and improve market penetration for PepsiCo’s snack brands.
This strategic move reflects the broader trend of multinational brands increasing their presence in the African snack market to cater to a growing middle class and evolving retail landscape.
With PepsiCo appointing Varun Beverages as the exclusive distributor and Varun Beverages investing in local manufacturing, the deal is expected to strengthen supply chains, reduce reliance on imports, and offer consumers more affordable and locally produced snack options.
The development marks a significant milestone for Varun Beverages as it expands its non-beverage portfolio and for PepsiCo as it consolidates its presence in the high-growth African market.
Varun Beverages is a major bottler and distributor of PepsiCo products, including carbonated drinks like Pepsi, 7 Up, and Mountain Dew, as well as non-carbonated beverages.
They also distribute Aquafina.
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