A production unit will be set up in Zimbabwe and Zambia by Varun Beverages for PepsiCo

Popular PepsiCo franchise partner Varun Beverages Ltd. announced a strategic effort on Monday involving its Zambian and Zimbabwean subsidiaries. A partnership with PepsiCo to produce, sell, and distribute the well-known snack brand “Simba Munchiez” in these countries forms the basis of this endeavor. As per to a regulatory document filed by Varun Beverages Ltd (VBL), this massive project is going to need substantial investments of USD 7 million (about Rs 60 crore).

Through its subsidiaries, Varun Beverages (Zambia) Ltd (VBZ) and VFZ Varun Foods (Zimbabwe) Pvt Ltd (VFZ), VBL hopes to strengthen PepsiCo’s position in the snacking industry in these areas. The relationship encompasses an exclusive franchising arrangement with Premier Nutrition Trading LLC, Dubai, a PepsiCo Inc. associated, with the objective of manufacturing and distributing ‘Simba Munchiez’ across Zambia and Zimbabwe.

A USD 7 million investment is about to be made into each manufacturing facility, opening the door for 5,000 metric tons of Simba Munchiez to be produced annually across a variety of stock keeping units (SKUs) in both nations. The start of operations is scheduled for October 1, 2025 for Zimbabwe, and April 1, 2026 for Zambia, in accordance with the terms of the franchising agreement.

By implementing competitive pricing strategies for SKUs with high demand, Varun Beverages Ltd. has emphasized PepsiCo’s crucial role in accelerating market penetration. In parallel, PepsiCo’s new, reasonably priced snack line will be unveiled to customers by VBL’s subsidiaries through the use of their strong distribution networks.

The mentioned cooperative project highlights a significant investment that PepsiCo made with the intention of growing its snack range in Zambia and Zimbabwe. This initiative promises improved customer accessibility and increased market presence in the region. Varun Beverages Ltd. and PepsiCo’s relationship is an example of a calculated move to take advantage of development prospects in the snack industry. It demonstrates their dedication to providing high-quality products and successfully satisfying customer needs.