Varun Beverages brings PepsiCo snacks to Zimbabwe

Varun Beverages Limited will start distributing PepsiCo snacks in Zimbabwe and Zambia from next week, with plans to begin local manufacturing when its production plant comes online in October this year.

PepsiCo South Africa's senior sales and market development manager for West, East, and Central Africa, Mr. Spencer Joyce, confirmed that Varun Beverages has been appointed as the exclusive distributor of PepsiCo's snack brands, including Lay's, Doritos, and NikNaks, in both countries, effective February 1, 2025.

"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, Lay's, 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 the initial agreement with PepsiCo in June 2024, Varun Beverages announced a planned US$7 million investment in Zimbabwe to produce PepsiCo snack brands, expanding beyond its existing beverage operations.

Varun Beverages aims to complete the new production line by October 2025, with an expected annual output of 5,000 tonnes. While PepsiCo's snack brands are already available in Zimbabwe through imports, local production is expected to streamline distribution, lower costs, and make the products more affordable.

The move aligns with Varun Beverages' strategy to strengthen its foothold in Africa's growing snacks market. Industry data estimates Zimbabwe's snack market at US$177 million annually and Zambia's at US$156 million, presenting a lucrative opportunity for expansion.

By increasing local production, Varun Beverages and PepsiCo aim to decrease reliance on imports, improve supply chains, and cater to rising consumer demand for packaged snacks.

Varun Beverages, a key bottler and distributor of PepsiCo products such as Pepsi, 7 Up, Mountain Dew, and Aquafina, is leveraging its strong market position to expand into the snack sector.

This investment reflects a broader trend of multinational brands increasing their footprint in Africa, targeting a growing middle class and evolving retail landscape.

The partnership between PepsiCo and Varun Beverages is expected to strengthen the availability of globally popular snack brands in Zimbabwe and Zambia while enhancing local economic activity through manufacturing and distribution investments.