Varun inks deal to distribute PepsiCo snacks to Zimbabwe, Zambia
ZIMBABWE/ZAMBIA – Varun Beverages Limited has announced plans to manufacture, distribute, and sell PepsiCo snacks in Zimbabwe and Zambia, effective 1 February.
The company will partner with PepsiCo through its subsidiaries, VFZ Varun Foods Zimbabwe and Varun Beverages Zambia.
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 both countries.
“This letter confirms that Varun Beverages Limited has been appointed by PepsiCo South Africa (Pty) Ltd as the exclusive distributor of PepsiCo Snacks in the Republic of Zambia and the Republic of Zimbabwe.”
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.
As reported by The Herald, the new plant will have an annual production capacity of 5,000 tonnes. While the snacks are already available in Zimbabwe through imports, local production will streamline distribution and potentially lower costs.
Citing industry data valuing Zimbabwe’s snack market at US$177 million and Zambia at US$156 million annually, Varun Beverages is poised to capitalize on the growing demand for packaged snacks in both countries.
Leveraging their established partnership with PepsiCo, the company’s expansion across Africa will boost local production, decrease import expenses, and improve market penetration for PepsiCo snack brands.
Meanwhile, PepsiCo (PepsiCo’s Kurkure) and Tata Consumer Products (Ching’s Secret) have partnered to manufacture and sell packaged snacks.
The flavor, seasoned with Ching’s Secret schezwan chutney, will be available at three price points.
The partnership between the two snack giants comes as the Indian snacks market is growing. It is viewed as a strategic move to test consumer response in the growing fusion snacks segment, which blends Indian flavors with global snacking trends.
A report by market research firm IMARC Group highlighted that the Indian snacks market is expected to grow at a Compound Annual Growth Rate (CAGR) of 9.08 per cent from Rs 42, 694.9 crore (US$493.94m) in 2023 to Rs 95,521.8 crore (US$1104.50m) by 2032.
According to the report, factors such as urbanization, a young demographic with rising disposable incomes, increasing demand for accessible, affordable snacks are driving this expansion, making it a key focus for PepsiCo’s growth strategy.
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