Introduction
Recently, a significant business transition took place in South Africa as Varun Beverages completed its acquisition of the beverage producer Twizza. This strategic move is expected to enhance Varun’s footprint in the African market, reflecting ongoing growth and collaboration within the beverage sector.
South Africa’s Standard Bank confirmed that the R2.1 billion transaction has closed after securing all required regulatory approvals, transferring ownership of the beverage producer to The Beverage Company (BevCo), Varun’s South African subsidiary.
The completion marks the final stage of a deal first announced in December 2025, when Varun Beverages approved the all-cash acquisition as part of a broader strategy to deepen its presence across the continent.
Varun Beverages, PepsiCo’s largest bottling partner outside the United States, has increasingly relied on African markets to drive growth, as domestic volumes in India slowed due to weather-related disruptions.
International volumes, largely driven by Africa, have supported revenue expansion and margins.
From proposal to completion
At the time of the announcement, the acquisition was expected to close by June 2026, subject to regulatory approvals in South Africa, Botswana, and Eswatini.
The deal gives Varun control of Twizza’s manufacturing facilities in Cape Town, Middelburg, and Komani, along with its established distribution network across Southern Africa.
With the transaction now complete, Twizza will operate under BevCo and integrate into Varun’s wider African footprint, which spans Morocco, Zambia, Zimbabwe, the Democratic Republic of Congo, and South Africa.
A growing regional player
Founded in 2003 by entrepreneur Ken Clark, Twizza has evolved from a regional operation into a nationally recognized beverage company focused on delivering affordable soft drinks.
The company produces a diverse range of non-alcoholic beverages, including carbonated drinks, energy drinks, and functional beverages, with exports reaching markets such as Lesotho, Eswatini, Botswana, and Namibia.
For the financial year ending June 2025, Twizza reported revenue of R1.689 billion ($113 million) and sales volumes of approximately 71 million cases, underscoring its significance within South Africa’s beverage industry.
Selling shares to BevCo means founder Ken Clark and his family will no longer retain ownership of the company.
“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,” Clark said.
“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.”
Key Takeaways
- Varun Beverages has completed the acquisition of Twizza, marking a significant step in its growth strategy.
- The deal, valued at R2.1 billion, allows Varun to expand its distribution network in Southern Africa.
- Twizza produces a wide array of beverages and has a strong presence in both local and export markets.
- Founder Ken Clark and his family exit ownership as Twizza transitions under BevCo’s management.
- The acquisition highlights Varun’s focus on accessing new markets and strengthening its operational capabilities.
FAQ
What does this acquisition mean for Varun Beverages?
The acquisition enhances Varun’s presence in the African beverage market and increases its distribution capabilities.
Who is Twizza’s founder?
Twizza was founded by Ken Clark in 2003, who has played a pivotal role in its growth.
How will Twizza operate under its new ownership?
Twizza will continue to focus on its core business while integrating into Varun’s larger operational framework.
What types of beverages does Twizza produce?
Twizza produces a variety of non-alcoholic beverages, including soft drinks, energy drinks, and functional beverages.
Conclusion
The acquisition of Twizza represents a strategic expansion for Varun Beverages into the African marketplace. As the company continues to evolve, it remains committed to providing quality beverages while enhancing operational efficiencies across the region.
