varun beverages products PepsiCo’s franchise rights in South Africa, Lesotho, and Eswatini are owned by Bevco. It is also entitled to distribution in Namibia and Botswana. It also features beverage brands like drinks with a lot of caffeine. Refreshing, energy beverage Reboost, fizzy beverage Fiji Lemonade JIVE and Coo-ee in classic flavor.
The announcement was made by varun beverages products Limited (VBL) to acquire Bevco, a beverage company based in South Africa, along with its subsidiaries that are fully owned. This information was provided by VBL, the biggest franchise bottler for PepsiCo, today, December 19. According to the company, this deal, which had an enterprise value of Rs 1,320 crore, will facilitate the expansion of business into the African market.
PepsiCo’s franchise rights in South Africa, Lesotho, and Eswatini are owned by Bevco. It is also entitled to distribution in Namibia and Botswana. It also features varun beverages products brands like Fiji Lemonade JIVE, energy drink Reboost, carbonated drink Coo-ee in classic flavor, and high-caffeine drink Refreshhh.
VBL anticipates that the agreement will be finalized by July 31, 2024. The business disclosed to the stock market that Bevco generated Rs. 1590 crore in net revenue in FY 2023. Bevco operates five production sites. Of these, one each in Durban, East London, and Cape Town, and two in Johannesburg. Bottles per minute, or 3600 BPM, is its installed capacity.
The largest soft drink market in Africa is in South Africa, and over the next four years, until 2027, it is predicted to grow at a compound annual growth rate of 5.3%.
varun beverages products and the Jharkhand government inked a deal.
VBL stated in a different filing that, on December 18, 2023, it signed an agreement with the Jharkhand government regarding its planned manufacturing plant in Patratu, Jharkhand.
When this plant is completed and operational on schedule, the agreement states that the total capital expenditure will be around Rs 450 crore. In India, VBL is the primary source of varun beverages products sales for PepsiCo. The company made Rs 10,595.83 crore in revenue in the fiscal year that ended on March 31, 2023.
