Varun Beverages Ltd., a prominent franchisee of PepsiCo, has announced plans to establish franchising opportunities through its subsidiaries, Varun Foods (Zimbabwe) Pvt. and Varun Beverages (Zambia) Ltd.
VFZ and VBZ are slated to commence operations to manufacture, distribute, and sell "Simba Munchiez," a popular snack under the PepsiCo umbrella, according to an exchange filing on Monday.
The investment for each location is estimated at approximately Rs 60 crore, with production expected to start in Zimbabwe by Oct. 1, 2025, and in Zambia by April 1, 2026.
The decision comes amid a promising growth outlook for the snack food industry in these regions, estimated at $177 million in Zimbabwe and $156 million in Zambia for 2024, with consistent growth anticipated.
PepsiCo, known for its substantial presence in the snack sector, reported that 59% of its revenue comes from the segment, underscoring the strategic importance of this expansion.
This move follows VBL's recent foray into the Moroccan market through its subsidiary, where it secured an exclusive appointment to manufacture Cheetos, another PepsiCo snack brand.
With the Moroccan snack food industry valued at approximately $500 million in 2024, VBL aims to replicate its success in Zimbabwe and Zambia.
The partnership between VBL's subsidiaries and Premier Nutrition Trading LLC, Dubai, a subsidiary of PepsiCo Inc., underscores a collaborative effort to capitalise on the burgeoning demand for snack foods in Southern Africa.
The proposed manufacturing facilities are expected to yield an annual capacity of around 5,000 tonnes, catering to various product variations to meet consumer preferences.
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