Varun Beverages (VBL), the world’s largest PepsiCo bottler outside the United States, is accelerating its expansion into Africa with a bold $125 million acquisition of South Africa’s Twizza Proprietary Limited. The deal, poised to close on June 30, 2026, subject to regulatory approvals, represents a significant investment in a region poised for substantial growth.
Twizza, a specialist in non-alcoholic beverages, brings a critical infrastructure element to VBL’s strategy. The acquisition includes three strategically located manufacturing plants – in Cape Town, Queenstown, and Middelburg – along with integrated preform and closure lines, key to efficiently producing a wide range of beverages.
This move comes at a crucial time for VBL. The company’s international volumes have surged by 9%, driven largely by robust growth in African markets. This growth significantly offset flat domestic volumes in India, where heavy rainfall impacted consumer demand. In Q3 CY2025, VBL reported a healthy gross margin of 56.7%.
VBL’s African footprint is already expanding rapidly. The company currently operates in Morocco, Zambia, Zimbabwe, and South Africa, and is setting its sights on Kenya with plans for local manufacturing. A strategic partnership with Carlsberg is also bolstering VBL’s distribution capabilities in select African subsidiaries, focused on beer distribution. Currently, VBL boasts a network of 12 production facilities outside India, with new plants already under commissioning in the Democratic Republic of Congo (DRC) and Zimbabwe.
Looking ahead, analysts predict continued growth for VBL in Africa, fueled by increasing consumer demand and the company’s strategic investments. The acquisition of Twizza positions VBL to capitalize on this potential, solidifying its status as a major player in the region’s beverage market. Key financial highlights for the year ending June 30, 2025, indicate anticipated revenue of ZAR 1,689 million (approximately $113 million) and case sales of roughly 71 million 8-ounce cases.
