Varun Beverages secures 10-year PepsiCo deal as Africa revenue hits $2.4 billion

Indian billionaire Ravi Jaipuria is doubling down on Africa's fast-growing consumer market after his beverage giant Varun Beverages signed a fresh 10-year extension of its bottling agreement with PepsiCo following $2.4 billion in annual revenue and rapid expansion across seven African countries. The revised agreement extends Varun Beverages' PepsiCo bottling licence in India until April 30, 2049, from the earlier expiry date of April 30, 2039, according to a regulatory filing issued by the company.

The new agreement, effective May 21, also removes restrictions that previously prevented Varun Beverages from pursuing non-PepsiCo business activities, giving the company greater flexibility as Jaipuria, widely known as India's "Cola King," increasingly positions Africa at the centre of its expansion strategy. This regulatory change allows the company to diversify its business portfolio beyond PepsiCo products.

Varun Beverages said international volumes rose 9% during the first nine months of 2025, largely fuelled by growing demand across African markets as weather-related slowdowns weighed on beverage consumption in India. The strong African performance helped push the company's revenue from operations up 8.5% year-on-year to Rs222.25 billion ($2.40 billion) for the year ended December 31.

According to the company, higher water sales, operational efficiencies and rising African demand supported margins during the period. The company's African footprint now spans South Africa, Zimbabwe, Zambia, Morocco, Lesotho, Eswatini and the Democratic Republic of the Congo, while it also holds distribution rights in Namibia, Botswana, Mozambique and Madagascar.

Additionally, Varun Beverages is establishing a wholly owned subsidiary in Kenya for local manufacturing and distribution, marking its next expansion frontier in East Africa. The company has steadily strengthened its position across Africa through a series of acquisitions, manufacturing projects and bottling investments over the past two years.

Earlier, in December 2023, Varun Beverages paid Rs13.2 billion, then valued at about $158 million, for The Beverage Company (BevCo), securing PepsiCo franchise rights across South Africa, Lesotho and Eswatini, alongside distribution rights in Namibia and Botswana. Subsequently, the company acquired Twizza, a South African producer and distributor of sodas, energy drinks and mixers, in a cash transaction valued at R2.09 billion ($125.4 million).

In November 2024, Varun Beverages further expanded its footprint by acquiring PepsiCo's bottling operations in Ghana and Tanzania. Thereafter, in June 2025, Varun Beverages RDC SAS launched construction of a $50 million Pepsi bottling plant in the Kiswishi Special Economic Zone near Lubumbashi in the Democratic Republic of the Congo to serve the wider Haut-Katanga region.

Meanwhile, in Zimbabwe, the company recently opened a $40 million snacks, juice and dairy manufacturing complex, including a Cheetos production facility and a juice and dairy blend plant, marking another major investment in Southern Africa's consumer goods market. More recently, in March, Varun Beverages agreed to acquire South Africa-based Crickley Dairy from Clark Holdings for R238 million, then valued at about $14.3 million. The company also diversified its African business in October 2025 after entering the alcoholic beverage market through a distribution partnership with Carlsberg.