New Delhi: Varun Beverages Ltd (VBL), PepsiCo’s largest franchisee outside the US, has announced the acquisition of South Africa-based beverage company Twizza for ₹ 1,118.7 crore. This marks VBL’s second acquisition in South Africa, as the company looks to aggressively expand its footprint across the continent.
Twizza offers its own branded carbonated soft drinks, energy drinks and flavoured beverages across South Africa, using its own distribution network. VBA aims to expand its presence in Africa beyond its role as a bottling powerhouse with this acquisition, that will be done through its South African subsidiary Bevco.
“The Board of Directors of Varun Beverages at their meeting held today inter-alia considered and approved to acquire 100 per cent Share Capital of Twizza at an Enterprise value of ZAR 2,095 million through our subsidiary company in South Africa Bevco,” the company said in a regulatory filing.
In March 2024, VBL acquired The Beverage Company, South Africa, allowing it to consolidate its franchised territories to include South Africa, Lesotho, Eswatini, Namibia, Botswana, Mozambique and Madagascar, all in southern Africa.
In November that year, VBL acquired Tanzania Bottling Company SA and SBC Beverages Ghana for $154.50 million and 15.06 million, respectively, allowing it to expand its distribution business for PepsiCo in Tanzania and Ghana respectively.
With this acquisition, Varun Beverages is finally getting into selling beverages under its own brand. How this will work remains to be seen.
