Varun Beverages to Distribute and Manufacture PepsiCo Snacks in Zimbabwe and Zambia.
Varun Beverages Limited will start distributing PepsiCo snacks in Zimbabwe and Zambia next week. The company plans to start making the snacks at a new plant in Zimbabwe in October.
PepsiCo has named Varun Beverages as the only distributor of its snacks in the two countries. This includes Lays, Doritos, and NikNaks. The deal starts on February 1, 2025.
Varun's units in Zimbabwe and Zambia will work with PepsiCo. They will make, distribute, and sell the snacks in each market.
In June 2024, Varun and PepsiCo first agreed to work together. Varun then said it would invest $7 million in a Zimbabwe factory to make PepsiCo snacks in addition to the drinks Varun already makes.
Varun wants to finish the new production line by October. It will make up to 5,000 tons of snacks per year. The snacks are already sold in Zimbabwe, but they are imported. Making them locally will make delivery easier and might lower prices.
The move fits with Varun's plan to expand in Africa's growing snack market. Zimbabwe's market is worth $177 million per year, and Zambia's is worth $156 million. By making snacks locally, Varun can sell more and cut import costs.
PepsiCo's choice of Varun as its only distributor is a key step. It strengthens PepsiCo's position in Africa's high-growth market. The deal should improve supply and give shoppers cheaper, locally-made snacks.
Varun is a major producer of PepsiCo drinks, including Pepsi, 7 Up, and Mountain Dew. It also sells other drinks, like Aquafina water. Snacks are a new area for Varun as it expands beyond beverages.
Varun Beverages Limited will start distributing PepsiCo snacks in Zimbabwe and Zambia next week. The company plans to start making the snacks at a new plant in Zimbabwe in October.
PepsiCo has named Varun Beverages as the only distributor of its snacks in the two countries. This includes Lays, Doritos, and NikNaks. The deal starts on February 1, 2025.
Varun's units in Zimbabwe and Zambia will work with PepsiCo. They will make, distribute, and sell the snacks in each market.
In June 2024, Varun and PepsiCo first agreed to work together. Varun then said it would invest $7 million in a Zimbabwe factory to make PepsiCo snacks in addition to the drinks Varun already makes.
Varun wants to finish the new production line by October. It will make up to 5,000 tons of snacks per year. The snacks are already sold in Zimbabwe, but they are imported. Making them locally will make delivery easier and might lower prices.
The move fits with Varun's plan to expand in Africa's growing snack market. Zimbabwe's market is worth $177 million per year, and Zambia's is worth $156 million. By making snacks locally, Varun can sell more and cut import costs.
PepsiCo's choice of Varun as its only distributor is a key step. It strengthens PepsiCo's position in Africa's high-growth market. The deal should improve supply and give shoppers cheaper, locally-made snacks.
Varun is a major producer of PepsiCo drinks, including Pepsi, 7 Up, and Mountain Dew. It also sells other drinks, like Aquafina water. Snacks are a new area for Varun as it expands beyond beverages.
