Indian multinational Varun Beverages, spearheaded by billionaire Ravi Jaipuria, has taken a significant step in expanding its African market presence by acquiring PepsiCo’s bottling operations in Ghana for $15.1 million. The deal is part of a broader $169.6 million transaction, which also encompasses PepsiCo’s bottling facilities in Tanzania. This dual acquisition marks a strategic move for Varun Beverages, one of PepsiCo’s largest global franchisees, and aligns with the company’s goal to establish a dominant footprint in Africa.
The acquisition of SBC Beverages Ghana Limited (SBCG), pending regulatory approval, will see Varun Beverages assume complete control of PepsiCo’s bottling and distribution network in Ghana. SBCG is currently responsible for manufacturing and distributing a range of PepsiCo brands including Pepsi, Pepsi Max, 7UP, Mirinda, and Mountain Dew. The Accra-based facility also produces the energy drink Cheetah, a local favorite. By taking over SBCG, Varun Beverages expands its portfolio and gains access to the manufacturing infrastructure needed to serve Ghana’s beverage market.
This move builds on Varun Beverages’ existing African operations, which include markets in Morocco and Zambia. The acquisition of SBCG will enable the company to integrate Ghana’s operations with its existing networks and streamline production and distribution across West Africa. With two active manufacturing lines in Accra, SBCG is well-positioned to boost the company’s output in the region, allowing Varun Beverages to increase its supply of both local and internationally recognized drinks.
Varun Beverages also sees growth potential beyond Ghana. The purchase of SBC Tanzania for $154.5 million solidifies its presence in East Africa, further expanding its influence across the continent’s beverage market. Jaipuria, who is also the leader of RJ Corp, a conglomerate with interests in sectors like fast food and healthcare, expressed confidence in the African market’s potential and sees the acquisitions as integral to his company’s long-term strategy. Varun Beverages, with its extensive experience in managing PepsiCo’s brands in countries like India, Nepal, and Sri Lanka, is well-prepared for this ambitious African expansion.
These acquisitions align with Varun Beverages’ overarching mission to grow its brand and solidify its legacy of distributing PepsiCo’s iconic beverages worldwide. As the company integrates SBCG’s operations, it is poised to strengthen its role in Ghana and across Africa, catering to a growing consumer demand for branded soft drinks. With the addition of PepsiCo’s popular products and a robust distribution network, Varun Beverages’ move to enter Ghana’s market highlights its ambition to become a key player in the global beverage industry.
