Varun Beverages enters South Africa with the investment of Beverage Company (BevCo).
It is a huge company in the beverage industry, growing by investing in other companies and changing how the beverage industry looks.
PepsiCo’s biggest franchise bottler produces a diverse range of beverage drinks, including Pepsi, and Mountain Dew.
BevCo acquisition helps Varun Beverages expand its presence in 10 African nations, including South Africa.
South Africa is known to be the largest soft drink market, with a projected growth of 5.3% CAGR by the year 2027.
At present, Coca-Cola dominates the South African beverage industry, holding a market share of approximately 50%.
Emkay Global expresses confidence in VBL's ability to gain market share, based on its success in Zimbabwe and Nepal.
Emkay Global notes a potential for portfolio-led pricing gain, emphasising VBLs' pricing advantage.
BevCo has achieved sales of 117 million cases this year, with a focus on its proprietary energy drink and other in-house brands.
Global brokerage suggests Varun Beverages may focus on PepsiCo's brands for operating better margins.