An India-based company, Varun Beverages, has plans to increase and expand its snack business in Africa through its subsidiaries Varun Foods Zimbabwe (VFZ) and Varun Beverages Zambia (VBZ). The group aims to establish franchising opportunities for the production of Simba Munchiez, a popular PepsiCo snack brand, in these markets.
Varun Beverages has, according to the latest presentations by the company, discussed an exclusive snack franchising appointment with Premier Nutrition Trading LLC, a PepsiCo brand, to distribute, produce and sell Simba Munchiez in Zimbabwe and Zambia. Estimated investment, with a planned annual capacity of 5,000 metric tons for the manufacturing facilities is around $7 million.
The franchise agreement is expected to be effective by October 1, 2025 for Zimbabwe and April 1, 2026 for Zambia, once the respective manufacturing facilities are operational.
Varun Beverages' subsidiaries will leverage their distribution capabilities to introduce the new range of affordable snack products from PepsiCo. As part of the understanding, PepsiCo will provide strong support for certain fast-moving stock-keeping units through price initiatives.
The snack food industry size in Zimbabwe and Zambia is estimated at $177 million and $156 million, respectively, and is growing consistently. The company notes that there are synergies with its existing beverage business in these markets. Additionally, Varun Beverages' India subsidiary has entered into an exclusive snacks’ appointment for the Morocco territory to manufacture Cheetos, with commercial production set to start on or before May 1, 2025.
Varun Beverages first entered the Zimbabwean market in 2018, selling Pepsi's soft drink brands such as Mountain Dew, 7-UP and Mirinda drinks.
