Varun Beverages Expands Footprint with Simba Munchiez in Africa

Varun Beverages Ltd, a franchise partner of PepsiCo, announced plans to manufacture, distribute, and sell Simba Munchiez snacks in Zimbabwe and Zambia through its subsidiaries. This move entails an investment of USD 7 million and aims to expand PepsiCo's market presence in these territories. The agreement will be effective from October 2025 for Zimbabwe and April 2026 for Zambia.

Varun Beverages Ltd, a franchise partner of PepsiCo, has announced that its subsidiaries are set to enter into an agreement with the multinational food and beverages giant. This agreement will allow them to manufacture, distribute, and sell the snacks brand 'Simba Munchiez' in Zimbabwe and Zambia.

The company plans to invest approximately USD 7 million (around Rs 60 crore) in setting up manufacturing units in these countries, according to regulatory filings by Varun Beverages Ltd (VBL).

Through subsidiaries VFZ Varun Foods (Zimbabwe) Pvt Ltd (VFZ) and Varun Beverages (Zambia) Ltd (VBZ), VBL will work with PepsiCo to strengthen and expand its snacks portfolio. The agreement includes exclusive franchising rights to manufacture, distribute, and sell Simba Munchiez in Zimbabwe and Zambia.

The investment is expected to create manufacturing facilities with an annual capacity of 5,000 MT in multiple SKUs (stock keeping units) at each location. The franchising appointment will be effective from October 1, 2025, for Zimbabwe and April 1, 2026, for Zambia, contingent on the operational readiness of the manufacturing facilities.

PepsiCo will drive certain fast-moving SKUs through price initiatives, while VBL subsidiaries will leverage their distribution networks to introduce the new range of snacks in these markets.

(With inputs from agencies.)