Varun Beverages Expands PepsiCo Snack Franchise to Zimbabwe and Zambia

Varun Beverages Limited’s (VBL) strong partnership with PepsiCo gives them access to a wide range of popular and well-known brands, allowing them to cater to a diverse consumer base. With a presence in over 27 countries, VBL has established itself as a leading player in the beverage industry, constantly innovating and expanding its product portfolio to meet changing consumer preferences.  In addition to their focus on soft drinks (CSDs) and non-carbonated beverages (NCBs), they also include packaged drinking water under the trademark name of PepsiCo. VBL has also been investing in sustainable practices and initiatives to reduce their environmental impact. This commitment to sustainability not only aligns with consumer expectations but also helps VBL differentiate itself in a competitive market. Overall, VBL’s strategic partnerships, diverse product offerings, and commitment to sustainability position them as a key player in the global beverage company PepsiCo with strong growth potential for the future.  VBL has been granted franchises for a range of PepsiCo products in 27 states and 7 union territories across the country. VBL has acquired the franchise rights to various PepsiCo beverages in Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe.

VBL’s partnership with PepsiCo:

VBL is enhancing its association with PepsiCo and increasing its presence in the PepsiCo snack portfolio. VBL, through its subsidiaries, Varun Foods (Zimbabwe) (VFZ) and Varun Beverages (Zambia) (VBZ), has discussed with PepsiCo entering into an exclusive snacks franchising appointment with Premier Nutrition Trading LLC, Dubai (a PepsiCo Inc. subsidiary), to manufacture, distribute, and sell Simba Munchiez in the territories of Zimbabwe & Zambia. 

Varun Beverages Limited (VBL) is investing approximately Rs. 60 crore to establish an annual capacity of around 5,000 MT for manufacturing Simba Munchiez in various SKUs at each location in Zimbabwe and Zambia.  The appointment will take effect on or before October 1, 2025, for Zimbabwe and April 1, 2026, for Zambia, when the respective manufacturing facilities begin operation.

Varun Beverages Ltd. stock movement: 

Following yesterday’s announcement of expansion into Zimbabwe and Zambia, the stock experienced a strong rally, closing higher on Monday. However, today the stock is down by 1%, currently trading at Rs. 1605 per share.

Conclusion: Varun Beverages Ltd.’s partnership with PepsiCo for further expansion into the snack market will be a game-changing decision in countries like Zimbabwe and Zambia.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.