Varun Beverages Zimbabwe, the local unit of the Indian beverages firm, has signed a landmark sales and distribution agreement with global beer giant Carlsberg for the African market, with Zimbabwe set to spearhead the first phase of the rollout.
In a congratulatory message to general managers and the head of sales, Mr Vijay Bahl, chief executive officer (CEO) of Varun Beverages Zimbabwe, said the agreement marks the first step in a broader expansion strategy that will see the southern African country become a key hub for beer production under the Carlsberg brand.
“Varun Beverages Ltd signed a sale and distribution agreement for beer with Carlsberg for Africa, including Zimbabwe as the first phase,” Mr Bahl said. “In the second phase, the manufacturing will be done in Zimbabwe with the successful launch of beer in the local market.”
The deal positions Zimbabwe as a strategic base for regional beer exports, complementing Varun’s existing operations in soft drinks manufacturing.
Phase two, which involves setting up local brewing operations, is expected to strengthen industrial capacity while creating new employment opportunities in the beverages sector.
The development comes on the back of Varun’s significant local investments, including a US$20 million expansion completed last year that added new production lines for carbonated drinks and bottled water at the Harare plant.
The company also signed a Memorandum of Understanding (MoU) with the Zimbabwe Investment and Development Agency (ZIDA) in 2024 to facilitate the establishment of a new snacks and juice manufacturing division.
According to Mr Bahl, Varun will commission its own snacks manufacturing line, specifically soft extruded products, starting in January 2026. Juice production is expected to begin in June the same year.
“We are starting our own manufacturing of snacks (soft extruded) from January 2026 and juices from June 2026,” he said. “We will be elevating people from the existing talent as our first choice.”
This marks another major milestone for the company, which has grown into one of Zimbabwe’s largest non-alcoholic beverage producers since establishing operations in 2018.
Varun’s continued reinvestment aligns with the Government’s industrialisation drive and import substitution strategy.
The planned beer, snacks, and juice lines are expected to deepen the value chain and support local suppliers of agricultural inputs such as maize, sorghum, and fruits.
“Varun’s partnership with Carlsberg could attract further international interest in Zimbabwe’s beverages industry, reinforcing the country’s position as a regional manufacturing hub for Southern Africa,” said Stephen Chifamba, an economist.
With local production of beer, snacks, and juices on the horizon, Varun Beverages Zimbabwe is poised to play a central role in shaping the country’s next phase of industrial growth. – Herald