27 March 2024 — Varun Beverages Ltd, PepsiCo’s largest franchise bottler, has finalized the acquisition of South Africa–based Beverage Company (BevCo) and its subsidiaries, marking a significant expansion in its African market presence.
Acquisition Details:
Varun Beverages Ltd announced the completion of the acquisition of BevCo after receiving approvals from PepsiCo Inc and Competition Commission South Africa. The acquisition, valued at approximately Rs 1,320 crore (around ZAR 3 billion), includes BevCo’s franchise and distribution rights in key African countries.
Varun Beverages Ltd has issued a corporate guarantee of ZAR 1,500 million to secure credit facilities for BevCo from FirstRand Bank, with no expected impact on VBL’s operations. The acquisition positions BevCo as a subsidiary of Varun Beverages Ltd, enabling VBL to expand its geographical footprint in Africa, particularly in South Africa, the largest soft drinks market on the continent.
Conclusion:
The successful acquisition of BevCo underscores Varun Beverages Ltd’s commitment to strategic expansion and market dominance in the beverage industry. With a longstanding partnership with PepsiCo and a focus on innovative growth strategies, VBL is well-positioned to capitalize on emerging market opportunities and drive continued success.
