PepsiCo bottling partner acquires Devyani Food Industries Kenya’s dairy beverages, juices, and packaged water business to strengthen regional manufacturing and distribution capabilities.
Varun Beverages Limited (VBL), one of PepsiCo’s largest franchise bottlers globally, has announced the acquisition of the value-added dairy beverages, juices, and packaged drinking water business of Devyani Food Industries (Kenya) Limited (DFIL Kenya) for US$32 million. The acquisition will be executed through VBL’s wholly owned subsidiary, VBL Industries (Kenya) Limited, and is expected to be completed on or before 1 August 2026, subject to customary closing conditions.
The acquisition includes DFIL Kenya’s beverage business as a going concern, along with all associated manufacturing assets. Through this transaction, Varun Beverages aims to strengthen its manufacturing footprint in Kenya while expanding its presence in the fast-growing East African beverage market. The company believes the acquisition will improve production capacity and support its long-term regional growth strategy.
A key asset in the transaction is DFIL Kenya’s manufacturing facility in Nakuru, strategically located on a 52-acre site along a national highway. The plant manufactures value-added dairy beverages, fruit juices, and packaged drinking water and is equipped with modern infrastructure, including a reverse osmosis (RO) plant, boiler, effluent treatment plant, diesel generator, and air compressor.
Varun Beverages said the acquisition will also enhance its distribution capabilities by leveraging DFIL Kenya’s established production and supply network. The company is preparing to commence the production of carbonated soft drinks at the Nakuru facility, enabling it to expand beyond non-carbonated beverages and strengthen its overall beverage portfolio in Kenya.
Although the acquisition qualifies as a related-party transaction because DFIL Kenya belongs to the promoter group, Varun Beverages stated that the deal has been conducted on an arm’s-length basis and complies with applicable corporate governance requirements.
The Kenya acquisition follows Varun Beverages’ recent expansion into the South African market through the acquisition of Twizza via The Beverage Company (BevCo), underscoring the company’s strategy of building a stronger manufacturing and distribution network across Africa. The company continues to diversify beyond carbonated soft drinks by expanding into dairy beverages, juices, and packaged drinking water across multiple international markets.
With this latest investment, Varun Beverages reinforces its commitment to Africa as a key long-term growth region. The acquisition is expected to strengthen the company’s operational capabilities, broaden its product portfolio, and create a robust platform for future expansion across Kenya and the wider East African beverage market.