With effect from February 1st, Varun Beverages Limited intends to produce, market, and distribute PepsiCo snacks in Zambia and Zimbabwe. Through its subsidiaries, Varun Beverages Zambia and VFZ Varun Foods Zimbabwe, the company will collaborate with PepsiCo.
According to Mr Spencer Joyce, Senior Sales and Market Development Manager for PepsiCo South Africa for West, East, and Central Africa, Varun Beverages has been named the sole distributor of the company’s snacks, which include Lays, Doritos, and NikNaks, in both nations.
Continuing, he had this to say: “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.”
Varun announced a projected US$7 million investment in Zimbabwe to make PepsiCo snack brands, extending their current beverage portfolio, after their first deal with PepsiCo in June 2024. It is revealed that the new plant will be able to produce 5,000 tons per year. Although Zimbabwe already imports the treats, local manufacturers will simplify distribution and possibly save expenses.
According to industry data available to BrandSpur digital news platform, Varun Beverages is well-positioned to benefit from Zambia’s and Zimbabwe’s expanding snack markets, which are valued at US$156 million and US$177 million yearly, respectively.
The company’s development throughout Africa will increase local manufacturing, lower import costs, and increase market penetration for PepsiCo snack brands by leveraging their long-standing alliance with PepsiCo.
In the meantime, Tata Consumer Products (Ching’s Secret) and PepsiCo (PepsiCo’s Kurkure) have teamed up to produce and market packaged snacks. There will be three price ranges for the flavour, which is seasoned with Ching’s Secret schezwan chutney.
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The two snack industry titans’ collaboration coincides with the expansion of the Indian snack sector. In the expanding fusion snack market, which combines Indian cuisines with international snacking trends, it is seen as a calculated effort to gauge consumer reaction.
However, the Indian snacks market is anticipated to expand at a Compound Annual Growth Rate (CAGR) of 9.08 percent from Rs 42, 694.9 crore (US$493.94m) in 2023 to Rs 95,521.8 crore (US$1104.50m) by 2032, according to a report by market research firm IMARC Group. The research claims that urbanization, a younger population with more disposable means, and the growing need for easily accessible, reasonably priced snacks are the main drivers of this expansion, making it a primary area of focus for PepsiCo’s growth plan.
