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Varun Beverages Ltd, a franchise partner of PepsiCo, has announced that its two subsidiaries plan to enter into an agreement with the multinational food and beverages giant to manufacture, distribute, and sell the snacks brand “Simba Munchiez” in Zimbabwe and Zambia, reported <a href="https://www.business-standard.com/companies/news/varun-beverages-to-set-up-production-units-for-pepsico-in-zimbabwe-zambia-124071500673_1.html">Business Standard</a>.
According to a regulatory filing by Varun Beverages Ltd (VBL), the company plans to set up manufacturing units in Zimbabwe and Zambia, entailing an investment of US$7 million.
Through its subsidiaries – VFZ Varun Foods (Zimbabwe) Pvt Ltd (VFZ) and Varun Beverages (Zambia) Ltd (VBZ), VBL has discussed with PepsiCo to further strengthen and expand the latter’s footprint in the snacks portfolio within these two African markets.
The company has discussed with PepsiCo to enter into an exclusive snacks franchising appointment with Premier Nutrition Trading LLC, a PepsiCo Inc. subsidiary based in Dubai.
This agreement will authorize VBL’s subsidiaries to manufacture, distribute, and sell the “Simba Munchiez” snacks brand in Zimbabwe and Zambia. It said:
<blockquote>
As per the understanding, an estimated investment in the manufacturing facility would be around USD 7 million (around Rs 60 crore) for an annual capacity of 5,000 MT for manufacturing of Simba Munchiez in multiple SKUs (stock-keeping units) at each location of Zimbabwe and Zambia.
</blockquote>
The company also said the franchising appointment will be effective on or before October 1, 2025, for Zimbabwe and April 1, 2026, for Zambia, once the respective manufacturing facilities come into operation.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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Varun Beverages plans to make PepsiCo snacks in Zimbabwe and Zambia. They will spend $7 million to set up production units in these two countries. Their subsidiaries VFZ and VBZ will work with PepsiCo to make and sell the Simba Munchiez snacks. They have an exclusive agreement with a PepsiCo subsidiary in Dubai. The manufacturing facility will produce 5,000 MT of snacks every year. The agreement will start in 2025 for Zimbabwe and 2026 for Zambia. This will help expand PepsiCo's snacks business in Africa.

Varun Beverages Plans To Set Up Production Units For PepsiCo In Zimbabwe

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