Varun Beverages to Enter Tunisian Market with New Bevanda Joint Venture

Indian PepsiCo bottler approves 75/25 partnership to produce and distribute beverages in North Africa, signaling a major step in its African growth strategy.

The Tunisian beverage sector is poised to welcome a heavyweight international player. Varun Beverages Limited (VBL), one of PepsiCo’s largest bottlers and franchisees outside the United States, has officially approved the creation of a joint venture with local company Bevanda.

The Joint Venture Structure & Scope

Announced on August 25, 2026, the partnership will establish Varun Beverages Tunisia SA (or a similar name pending regulatory validation). The new entity will be structured with a 75% stake held by VBL and a 25% stake by Bevanda, backed by a proposed share capital of 9 million Tunisian dinars (MDT).

The venture’s scope extends far beyond importing finished goods. It will focus on the local production and distribution of carbonated soft drinks, fruit juices, bottled water, and dairy beverages. While VBL has confirmed its intent to establish a direct industrial footprint in Tunisia, key operational details remain under wraps. The company has not yet disclosed the plant’s location, production capacity, job creation targets, or launch timeline.

Importantly, the 9 MDT figure represents only the initial share capital; the total industrial investment—including manufacturing facilities, equipment, logistics, and distribution networks—is expected to be significantly higher. The project’s finalization is subject to standard Tunisian regulatory approvals, with the next phase focused on transitioning the board’s decision into an operational reality.

Why Tunisia? Strategic Rationale & Market Context

For VBL, this move aligns with a broader international expansion strategy. The Indian conglomerate has grown into a global beverage powerhouse largely through its long-standing partnership with PepsiCo, manufacturing, bottling, and distributing multiple American brands across emerging markets.

Notably, the official announcement does not specify any PepsiCo trademarks. It would be premature to assume immediate local production of Pepsi, 7UP, or other portfolio brands. For now, the project is categorized by beverage segments rather than specific labels. Geographically, Tunisia offers VBL a strategic foothold in North Africa, potentially serving as a regional hub to accelerate operations across the continent. The company already maintains a presence in several African markets and is actively diversifying into high-growth categories like juices, water, and dairy.

The timing is particularly strategic. Tunisia’s beverage industry is currently navigating significant supply chain and production challenges. Bottled water demand has surged during the summer months, prompting the National Syndicate of Non-Alcoholic Beverage Industries (under Utica) to report that mineral water plants are operating at full capacity. Local producers continue to grapple with constraints in raw materials, packaging, energy, transportation, and production scalability.

VBL’s entry could reshape the competitive landscape. Leveraging its industrial expertise, commercial networks, and marketing capabilities, the Indian group could unlock new opportunities for local suppliers and service providers. However, the true economic impact will depend on the scale and execution of the upcoming operational plans.

Parallel Diversification: VBL’s Broader Growth Strategy

The Tunisia announcement coincides with VBL’s aggressive diversification strategy at home. On the same day, the board approved the creation of KIVA Spirits and Company Limited, a wholly-owned subsidiary targeting the alcoholic beverage and ready-to-drink (RTD) segments in India. The new venture will be led by Prathmesh Mishra, a seasoned executive with over 30 years of experience in consumer goods and spirits, formerly with Diageo and Pernod Ricard.

Together, these initiatives underscore VBL’s dual focus: expanding its product portfolio beyond traditional soft drinks while accelerating growth beyond its domestic market. In Tunisia, the project remains in its early stages. The strategic decision is made, the local partner is secured, and the capital structure is defined. The next critical milestones—site selection, capacity planning, and commissioning timelines—will ultimately determine the venture’s economic footprint.

VBL’s African Expansion Timeline (2025–2026)

VBL has been systematically strengthening its African footprint over the past two years:

• 2025: Expanded into Zimbabwe and Zambia with PepsiCo snack distribution.
• 2025: Established a 100% owned subsidiary in Kenya dedicated to beverage production, distribution, and marketing.
• 2025: Launched local Cheetos production in Morocco and Zimbabwe, diversifying beyond beverages.
• 2025: Partnered with Carlsberg to pilot beer distribution in select African markets where VBL already operates.
• March 2026: Finalized the acquisition of South Africa’s Twizza (a leading carbonated beverage producer) via its subsidiary The Beverage Company (BevCo) for 2.1 billion South African rand.
• March 2026: Continued South African diversification with an agreement to acquire Crickley Dairy, a specialist in dairy beverages and juices.