JOHANNESBURG, South Africa — Varun Beverages, owned by Indian billionaire Ravi Jaipuria, has extended its partnership with PepsiCo, securing a 10-year bottling license in India and enhancing its presence in the African market.
The agreement, which now runs until April 30, 2049, underscores Varun Beverages’strategic focus on Africa, where the company has seen significant growth, particularly in the first nine months of 2025 with a 9% increase in international volumes. This surge in demand, coupled with the expansion of its revenue to Rs222. 25 billion ($2.
40 billion), has been primarily driven by the robust performance across the continent. Varun Beverages now operates in seven African markets, including South Africa, Zimbabwe, Zambia, Morocco, Lesotho, Eswatini, and the Democratic Republic of the Congo, and holds distribution rights in Namibia, Botswana, Mozambique, and Madagascar.
The extension of the PepsiCo agreement also marks a significant milestone for Varun Beverages, as it paves the way for greater flexibility in pursuing non — PepsiCo business activities. This strategic move aligns with Jaipuria’s vision of placing Africa at the heart of his expansion strategy.
In line with this ambition, Varun Beverages has been actively expanding its operations in Africa through acquisitions, manufacturing projects, and bottling investments. Recent investments include the acquisition of The Beverage Company (BevCo) in December 2023 for Rs13. 2 billion ($158 million), which granted PepsiCo franchise rights across South Africa, Lesotho, and Eswatini, as well as distribution rights in Namibia and Botswana.
In November 2024, the company further expanded by acquiring Twizza, a South African producer and distributor of sodas, energy drinks, and mixers.
The following year, Varun Beverages acquired PepsiCo’s bottling operations in Ghana and Tanzania, and in June 2025, the construction of a $50 million bottling plant in the Democratic Republic of the Congo commenced. These strategic investments and acquisitions reflect Varun Beverages’commitment to growing its presence in Africa, with the company also establishing a wholly owned subsidiary in Kenya for local manufacturing and distribution.
The company’s aggressive expansion strategy is a testament to the untapped potential of the African market and the beverage sector’s growth opportunities.
The long — term nature of the bottling agreement with PepsiCo signals a mutual confidence in the future of the African market.
As Varun Beverages continues to invest in new manufacturing facilities and diversify its product portfolio, it is poised to make a lasting impact on the African beverage industry.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Olamilekan Okebiorun
