By Standard Bank
Standard Bank Business and Commercial Banking’s Corporate Finance Advisory team has announced the successful completion of the R2.1 billion (approximately $123.7 million) sale of South Africa’s non-alcoholic beverages manufacturer, Twizza, to The Beverage Company, a wholly-owned subsidiary of India-based Varun.
This transaction has received all necessary regulatory approvals, officially concluding the deal and marking a significant milestone in South Africa’s fast-moving consumer goods (FMCG) sector.
Twizza is a South African manufacturer specializing in a variety of affordable, high-quality non-alcoholic beverages, including carbonated soft drinks, energy drinks, functional drinks, and mixers.
Established in 2003 in Queenstown (Komani), Eastern Cape, by entrepreneur Ken Clark, Twizza was founded with the goal of providing accessible and enjoyable refreshments to everyday South Africans, particularly in underserved markets. Over the years, the company has evolved into a successful family-owned enterprise, showcasing the strength of founder-led businesses in the consumer economy. Currently, Twizza operates three internationally accredited manufacturing and distribution facilities located in Queenstown, Middelburg, and Cape Town. In addition, it engages in contract manufacturing, packing, and distribution, making its products available in South Africa, Lesotho, Eswatini, Botswana, and Namibia. The acquisition by Varun positions Twizza within one of the world’s largest PepsiCo franchise bottling networks.
Headquartered in India, Varun is involved in the manufacturing, bottling, distribution, and sale of a diverse line of beverages under PepsiCo’s trademarks, with operations extending across Asia and Africa, supported by substantial manufacturing capabilities and a widespread distribution network.
“The acquisition by Varun marks the next phase of Twizza’s growth journey,” states Lisle Clark, the chief executive officer of Twizza.
“From our beginnings in Queenstown to becoming a recognized player in South Africa’s beverage market, our focus has always been on delivering affordable, quality products to our customers. Under Bevco’s ownership, a wholly-owned subsidiary of Varun, the business is well-positioned to scale further, access new capabilities, and continue serving consumers with the same commitment, while unlocking value for shareholders,” he articulated.
“This transaction affirms the strength of our advisory capability and our ability to support clients in structuring exits at the right time,” adds Raven Moodley, head of corporate finance advisory within Business & Commercial Banking (BCB) at Standard Bank South Africa. “It reflects the power of timing, performance, and sector dynamics in unlocking meaningful shareholder value.”
Utilizing this expertise, the team executed a competitive process to maximize value for shareholders, resulting in a favorable outcome for Twizza’s founding shareholder.
The sale of Twizza took place amidst a backdrop of strong company performance and favorable market conditions, with sector consolidation spurring strategic interest from both local and international bidders.
Key Takeaways
- Twizza has been sold for R2.1 billion to Varun’s subsidiary, The Beverage Company.
- The transaction marks a significant moment in South Africa’s FMCG sector.
- Twizza offers a range of affordable non-alcoholic beverages since its founding in 2003.
- Varun is a prominent player in the PepsiCo beverage bottling network.
- The sale reflects competitive advisory efforts that maximized shareholder value.
- Strong market conditions and company performance influenced the sale.
FAQ
What is Twizza known for?
Twizza is known for producing a variety of affordable, high-quality non-alcoholic beverages including soft drinks, energy drinks, and mixers.
Who acquired Twizza?
Twizza was acquired by The Beverage Company, which is a subsidiary of Varun, based in India.
What impact does this acquisition have on Twizza?
The acquisition is expected to enhance Twizza’s growth trajectory, offering new capabilities and a broader market reach.
When was Twizza founded?
Twizza was founded in 2003 in Queenstown, Eastern Cape, South Africa.
What markets does Twizza serve?
Twizza’s products are available in South Africa, Lesotho, Eswatini, Botswana, and Namibia.
This acquisition ushers in a new era for Twizza, enabling further growth and development in the beverage market while ensuring that quality remains a priority for consumers.
