Varun Beverages is set to acquire South Africa's Crickley Dairy from Clark Holdings in a deal valued at R238m ($14.3m).
In a regulatory filing, the India-based PepsiCo bottler said the deal, struck through its The Beverage Company subsidiary, was part of a plan to “diversify its product portfolio into new categories viz. value-added dairy and juice-based drinks”.
Crickley Dairy was established in 1984 in South Africa’s Eastern Cape by Ken Clark. It makes dairy products, including milk, cheese and yogurt, largely sold under the Crickley brand. Its range also includes soft drinks.
According to Crickley Dairy's website, the company's products are sold at retailers in South Africa including Pick n Pay, Shoprite and Spar.
Varun Beverages entered South Africa in December 2023 through its acquisition of The Beverage Company. The business holds the PepsiCo franchise for South Africa, Lesotho and Eswatini, along with additional distribution rights covering Namibia and Botswana.
In December, Varun Beverages agreed to acquire South Africa-based soft-drinks maker Twizza.
Founded in 2003, Twizza produces and distributes sodas, energy drinks and mixers. Its products are sold domestically and also shipped to nearby markets including Lesotho, Eswatini, Botswana and Namibia.
Twizza runs three plants in Cape Town, Queenstown and Middelburg, with annual capacity of about 100 million 8oz cases, according to Varun Beverages.
For the year ended 31 December, Varun Beverages reported revenue from operations up 8.5% year-on-year to Rs222.25bn ($2.40bn).
EBITDA rose 7.2% to Rs50.49bn, while net profit after tax increased 16.2% to Rs30.62bn.
Alongside its full-year results, which were announced on 9 March, Varun Beverages said it broadened its footprint in Africa during 2025.
The company cited several steps, including the incorporation of a wholly owned subsidiary in Kenya, the start of Cheetos production in Morocco and Zimbabwe, as well as the expansion of PepsiCo snacks distribution in Zimbabwe and Zambia.
In October, Varun Beverages entered the alcoholic beverage market through a distribution agreement with Carlsberg in Africa.
