Varun Beverages to acquire South Africa’s Twizza in US$125M deal 

SOUTH AFRICA – Varun Beverages Ltd (VBL), the world’s largest bottler of PepsiCo products outside the United States, is advancing its African expansion plans with a proposed acquisition of South African soft drink manufacturer Twizza. 

The transaction will be executed through VBL’s South African subsidiary, The Beverages Company Proprietary Limited (BevCo), which has agreed to acquire 100 percent of Twizza’s share capital in an all-cash deal.  

The enterprise value of the transaction is approximately ZAR 2,095 million (US$125 million). 

Founded in Queenstown, Twizza has grown into one of South Africa’s best-known independent beverage producers. The company is recognised for its focus on affordability, local sourcing, and operational efficiency.  

Its vertically integrated business model allows it to manufacture several packaging and production components in-house, supporting cost control and supply stability in a competitive market environment. 

For the financial year ended June 30, 2025, Twizza reported revenue of ZAR 1,689 million, or roughly US$113 million, with sales volumes reaching approximately 71 million eight-ounce cases. 

The acquisition is expected to be completed by June 30, 2026, subject to regulatory approvals in South Africa, Botswana, and Eswatini. Upon completion, Twizza will operate as a wholly owned subsidiary of Varun Beverages. 

Africa has emerged as a key growth driver for VBL’s international business. While domestic volumes in India remained flat during the first nine months of 2025 due to heavy rainfall, international volumes rose nine percent, largely supported by African operations. 

This performance contributed to a gross margin of 56.7 percent in the third quarter of calendar year 2025, aided by a higher mix of water sales and efficiencies from backward integration initiatives. 

Varun Beverages currently operates across Morocco, Zambia, Zimbabwe, South Africa, Lesotho, Eswatini, and the Democratic Republic of Congo, with distribution rights extending to Namibia, Botswana, Mozambique, and Madagascar.

The company is also setting up a wholly owned subsidiary in Kenya to support local manufacturing and distribution. 

Beyond soft drinks, VBL has entered an exclusive agreement with Carlsberg Breweries A/S to test-market beer across selected African subsidiaries. Its snack manufacturing facility in Morocco is operating at full scale, while plants in Zambia and Zimbabwe are preparing to produce and distribute Simba Munchiez. 

In 2025, VBL invested Rs 412.80 crore (US$48.19 million) into BevCo to repay existing debt and support future expansion.  

The Twizza acquisition highlights VBL’s continued focus on strengthening local production and supply chain resilience across African markets. 

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