Varun Beverages to Acquire South Africa’s Twizza in ₹9,000 Cr Deal, Strengthens Africa Footprint

Varun Beverages (VBL), the largest franchise bottler of PepsiCo globally, has announced a major expansion in Africa with the full acquisition of South Africa-based beverage manufacturer Twizza.
The deal, valued at ZAR 2,095 million (approx. ₹9,000 crore), will be executed through VBL’s local subsidiary, The Beverages Company Proprietary Limited (BevCo).

VBL to Acquire 100% Stake in Twizza

Varun Beverages informed stock exchanges that its Board of Directors has approved the acquisition of 100 per cent share capital of Twizza at an enterprise value of ZAR 2,095 million.
The transaction will be carried out through BevCo, VBL’s South Africa-based subsidiary, and is subject to regulatory and statutory approvals.

According to the company, the acquisition is expected to be completed on or before June 30, 2026.

Twizza Financials and Manufacturing Strength

For the financial year ended March 31, 2025, Twizza reported a turnover of ZAR 1,689 million (₹9,010 crore), reflecting its strong position in the South African beverage market.

Key Manufacturing Assets

• Three manufacturing plants located in Cape Town, Queenstown, and Middelburg

• Backward integration facilities across all plants

• 5 preform lines and 1 closure line, enhancing supply chain efficiency

VBL stated that these assets will allow BevCo to deepen market penetration and improve operational control in South Africa.

Twizza to Become Step-Down Subsidiary

Following the completion of the transaction, Twizza will become a step-down subsidiary of Varun Beverages, further strengthening the company’s consolidated African operations.

Africa: A Strategic Growth Market for Varun Beverages

The Twizza acquisition builds on VBL’s aggressive expansion strategy across Africa:

Previous Africa Deals

• March 2024: Acquisition of The Beverage Company, South Africa, including BevCo

  • Expanded VBL’s footprint across South Africa, Lesotho, Eswatini, and distribution rights in Namibia, Botswana, Mozambique, and Madagascar

• November 2024: Share purchase agreement to acquire:

  • Tanzania Bottling Company (USD 154.50 million)

  • SBC Beverages Ghana (USD 15.06 million)
    Both entities are part of PepsiCo’s bottling ecosystem.

Snack Business Expansion in Morocco

In addition to beverages, VBL is also scaling its snacks portfolio in Africa.
Its wholly owned subsidiary, Varun Beverages Morocco SA, has entered into an agreement to manufacture and package Cheetos in Morocco.

This complements VBL’s existing distribution arrangement for PepsiCo’s snack brands, including:

• Lays

• Cheetos

• Doritos

Why the Twizza Deal Matters

The acquisition is strategically significant as it:

• Expands VBL’s manufacturing base in Southern Africa

• Improves supply chain integration

• Strengthens control over franchised and distribution territories

• Supports PepsiCo’s long-term growth plans in emerging markets

Strengthening Africa as a Growth Engine

With the proposed acquisition of Twizza, Varun Beverages is reinforcing Africa as a core growth market. The deal aligns with VBL’s long-term strategy of scale, backward integration, and geographic diversification.
As regulatory approvals progress, the transaction is expected to significantly enhance VBL’s competitive position across South Africa and neighboring regions.

Frequently Asked Questions (FAQs)

1. Who is acquiring Twizza?

Varun Beverages Ltd, PepsiCo’s largest franchise bottler, is acquiring Twizza through its South African subsidiary BevCo.

2. What is the value of the Twizza acquisition?

The acquisition is valued at ZAR 2,095 million, equivalent to approximately ₹9,000 crore.

3. When will the Twizza deal be completed?

Varun Beverages expects the acquisition to be completed on or before June 30, 2026, subject to approvals.

4. What assets does Twizza own?

Twizza operates three manufacturing facilities in South Africa and has integrated preform and closure manufacturing lines.

5. How does this deal fit into VBL’s Africa strategy?

The deal strengthens VBL’s manufacturing and distribution network across Africa, following acquisitions in South Africa, Tanzania, Ghana, and expansion into Morocco.