Shares of Varun Beverages Ltd were trading in the green and 3% higher on 15 July after the company announced that they have entered into an exclusive snacks franchising with Premier Nutrition Trading. 

With the help of this agreement with Dubai-based Premier Nutrition Trading, the company will be able to manufacture, distribute, and sell ‘Simba Munchiez’ in Zimbabwe and Zambia. 

The company through its subsidiaries Varun Beverages (Zambia) and Varun Foods (Zimbabwe) has entered into an exclusive franchise with Premier Nutrition. The company plans to invest around $7 million in a manufacturing facility that will have an annual capacity of 5,000 metric tonnes for producing Simba Munchiez in various SKUs for the Zimbabwe and Zambia markets.

These subsidiaries will use their distribution strengths to launch a new affordable range of snack products under the pepsiCo brand. 

Earlier on 20 February, the company’s Morocco subsidiary secured an exclusive snacks franchising deal to start manufacturing Cheetos by 1 May 2025. The snack food market in Morocco is estimated to be $500 million in 2024, while Zimbabwe and Zambia’s markets are expected to be $177 million and $156 million, respectively.

At 3:30 pm, the shares of Varun Beverages closed 2.56% higher at Rs 1,625 on NSE.

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