In a significant move to bolster its presence in the African continent, Varun Beverages Ltd (VBL), the largest franchise bottler for PepsiCo, has announced a major acquisition. The company's subsidiary, The Beverages Company (Bevco), will acquire South Africa-based beverage firm Twizza for ₹1,118.7 crore.
Deal Details and Strategic Rationale
In a regulatory filing made on 21 December, VBL informed the exchanges that its board has approved the acquisition of 100% shares of Twizza. The enterprise value for the transaction is set at ₹1,118.7 crore (ZAR 2,095 million), which will be settled entirely in cash. The completion of this deal is contingent upon receiving necessary regulatory and other approvals and is targeted to be finalized on or before June 30, 2026.
This acquisition is a strategic step for Varun Beverages to deepen its penetration in the South African market. VBL stated that the move will allow Bevco to leverage Twizza's established manufacturing infrastructure. The South African company operates three production facilities located in Cape Town, Middelburg, and Queenstown, boasting a combined annual production capacity of 100 million cases. For the financial year 2025, Twizza reported a turnover of ₹9010.26 million (ZAR 1,689 million).
A key attraction for VBL is Twizza's backward integration capabilities. The company has 5 preform and 1 closure line across its plants, which enhances production efficiency and cost control. Once the acquisition is complete, Twizza will function as a step-down subsidiary under Bevco.
Africa: The New Growth Frontier for Varun Beverages
The purchase of Twizza is not an isolated event but part of a concerted strategy by Varun Beverages to tap into the high-growth potential of the African market. The company's leadership has been vocal about the continent's importance. During an earnings call in October, VBL Chairman Ravi Jaipuria highlighted the resurgence of growth in Africa.
He specifically pointed out South Africa's performance, noting "mid-double digits growth" and stated that the country is poised to become a crucial part of VBL's African territory. This optimism is backed by performance; while VBL saw flat volumes in India during the September 2025 quarter, its South African operations had a standout quarter, driving a 9% growth in the company's international business for that period.
A Series of Strategic Moves
The Twizza deal follows VBL's earlier acquisition of The Beverage Company, South Africa (BevCo) in March 2024. That purchase helped consolidate VBL's presence in its franchised territories in South Africa, Lesotho, and Eswatini, as well as distribution rights in Namibia, Botswana, Mozambique, and Madagascar.
Furthermore, VBL has been actively expanding its footprint across the continent. On November 13, 2024, the company entered into share purchase agreements to acquire PepsiCo's bottling businesses in Tanzania and Ghana for equity values of $154.50 million and $15.06 million, respectively. Additionally, its Moroccan subsidiary has agreements to manufacture Cheetos and distribute PepsiCo's snack portfolio, including Lays and Doritos.
For the year 2024, Varun Beverages reported a robust revenue of ₹20,007.7 crore and sold a staggering 1,124 million cases globally. The acquisition of Twizza is a clear signal that the company is doubling down on international growth, with Africa at the center of its expansion blueprint, aiming to strengthen operations, enhance production capacity, and capture a larger market share in a promising region.
