Dairy Diversification Signals Bold Portfolio Shift (Image Credits: Unsplash)
South Africa – Varun Beverages, India’s leading PepsiCo bottler, has agreed to acquire Crickley Dairy Proprietary Limited from Clark Holdings Proprietary Limited. The transaction, valued at ZAR 238 million (about $14.3 million or Rs 131 crore), will be executed through its subsidiary The Beverage Company Proprietary Limited, known as Bevco.[1][2] This move thrusts the company into value-added dairy products and juice-based drinks, building on its established beverage operations in the region. Investors responded positively, with Varun Beverages shares climbing around 3% following the announcement.[3]
Dairy Diversification Signals Bold Portfolio Shift
The acquisition represents a significant pivot for Varun Beverages, traditionally focused on carbonated soft drinks and snacks. By entering the dairy sector, the company seeks to tap into high-margin categories that complement its existing lineup. Bevco signed the agreement to purchase a 100% stake in Crickley Dairy, subject to necessary regulatory approvals.[4]
Executives view this as a natural extension of operations in South Africa. The deal enhances distribution synergies across major retailers already serving both companies. Completion remains pending standard clearances, aligning with Varun’s pattern of methodical market entries.[1]
Crickley Dairy’s Established Legacy in Eastern Cape
Founded in 1984 by Ken Clark, Crickley Dairy operates from South Africa’s Eastern Cape province. The firm specializes in a range of dairy items, including fresh milk, cheese, and yogurt, primarily marketed under its own Crickley brand. It also produces soft drinks, broadening its appeal in the local market.[1]
Products reach consumers through prominent chains such as Pick n Pay, Shoprite, and Spar. This widespread presence offers Varun Beverages immediate access to established supply networks. The acquisition integrates these assets seamlessly into Bevco’s framework, potentially boosting cross-category sales.
Varun’s String of South African and African Moves
Varun Beverages first planted roots in South Africa in December 2023 by acquiring The Beverage Company. Bevco holds the PepsiCo franchise for South Africa, Lesotho, and Eswatini, plus distribution rights in Namibia and Botswana. That entry paved the way for further consolidation.[1]
The company followed with an agreement for Twizza, a soft-drinks producer founded in 2003. Twizza manufactures sodas, energy drinks, and mixers from three plants in Cape Town, Queenstown, and Middelburg, boasting an annual capacity of roughly 100 million 8oz cases. Its reach extends to neighboring markets like Lesotho, Eswatini, Botswana, and Namibia.[1]
Beyond South Africa, Varun Beverages ramped up its continental presence in 2025. Key developments included:
- Incorporation of a wholly owned subsidiary in Kenya.
- Launch of Cheetos production in Morocco and Zimbabwe.
- Expansion of PepsiCo snacks distribution in Zimbabwe and Zambia.
- October distribution tie-up with Carlsberg for alcoholic beverages across Africa.
These steps highlight a multifaceted growth strategy amid rising demand for diversified FMCG products.[1]
Solid Financials Underpin Expansion Drive
Varun Beverages reported strong results for the year ended 31 December 2025, announced on 9 March 2026. Revenue from operations reached Rs 222.25 billion ($2.40 billion), reflecting an 8.5% increase year-over-year. EBITDA grew 7.2% to Rs 50.49 billion, while net profit after tax rose 16.2% to Rs 30.62 billion.[1]
| Metric | Amount (Rs billion) | YoY Growth |
|---|---|---|
| Revenue | 222.25 | 8.5% |
| EBITDA | 50.49 | 7.2% |
| Net Profit | 30.62 | 16.2% |
These figures provide ample capital for acquisitions like Crickley Dairy. Analysts note the timing aligns with favorable market conditions in Africa’s beverage and dairy sectors. For deeper insights, see the full report on Just Food.[1]
Key Takeaways
- Varun Beverages enters dairy via ZAR 238m Crickley acquisition, diversifying beyond beverages.
- Builds on Bevco and Twizza deals, strengthening South African dominance.
- Supported by robust FY2025 financials and broader African initiatives.
Varun Beverages’ Crickley Dairy purchase cements its role as a dynamic player reshaping Africa’s food and beverage landscape. This strategic layering of dairy atop beverages promises enhanced resilience and revenue streams. What do you think of Varun’s push into new categories? Tell us in the comments.
