Varun Beverages, an Indian multinational led by billionaire Ravi Jaipuria, has agreed to acquire PepsiCo’s bottling operations in Ghana for $15.1 million.
In a statement, the company said the deal forms part of a broader $169.6 million purchase covering operations in both Ghana and Tanzania and marks an expansion of Varun Beverages’ footprint in Africa.
The acquisition of SBC Beverages Ghana Limited (SBCG), which was finalised subject to regulatory approvals, will see Varun Beverages take full control of Pepsi’s bottling and distribution network in Ghana.
SBCG manufactures and sells the PepsiCo franchised brands: Pepsi, Pepsi Max, 7UP, 7UP FREE, Mirinda, Mountain Dew and Evervess. SBCG also manufactures and sells energy drink under its own brand Cheetah.
The company has one manufacturing facility located in Accra with two manufacturing lines.
The company, which already operates in several African countries, including Morocco and Zambia, aims to bolster its position in the region by integrating SBCG’s operations into its existing network.
Varun Beverages is known for manufacturing and distributing Pepsi, 7Up, Mirinda, and Mountain Dew in India and several other countries.
In Ghana, SBCG has a manufacturing facility in Accra and boasts a strong presence with key beverage products under PepsiCo’s global brand umbrella.
Alongside the Ghana deal, Varun Beverages has also secured the purchase of SBC Tanzania for $154.5 million, which will further cement its dominance in the East African beverage market. The company’s expansion strategy includes establishing a solid base in Africa, where it has already made significant strides since the 1990s.
Ravi Jaipuria, a tycoon with an estimated net worth of $16 billion, leads Varun Beverages, one of PepsiCo’s largest global franchisees.
The company has extended its influence into Nepal and Sri Lanka, with Jaipuria’s conglomerate, RJ Corp, involved in sectors like fast food and healthcare, in addition to beverages.
Mr. Jaipuria expressed enthusiasm about the deal, noting the vast potential for Varun Beverages to increase its operations across both Ghana and Tanzania, producing millions of cases of beverages annually.
This acquisition aligns with the company’s long-term plans to scale operations and continue its legacy of distributing iconic beverages globally.