The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Varun Beverages Limited (VBL), one of PepsiCo's largest franchise bottlers, is strengthening its presence in East Africa through the acquisition of the value-added dairy beverages, juices and packaged drinking water business of Devyani Food Industries (Kenya) Limited (DFIL Kenya) for $32 million.

The transaction, announced through a regulatory filing, will be executed by VBL Industries (Kenya) Limited, the company's wholly owned subsidiary, and is expected to close on or before 1 August 2026, subject to customary completion conditions.

The acquisition covers DFIL Kenya's beverage business as a going concern, including all associated manufacturing assets. VBL said the deal will enhance its manufacturing capabilities while supporting its long-term growth strategy across Kenya and the wider East African market.

According to the company, the acquisition will enable it to deepen market penetration by leveraging DFIL Kenya's existing manufacturing infrastructure and distribution capabilities. The business transfer includes a modern production facility in Nakuru, strategically located on a 52-acre site along a national highway.

The plant currently manufactures value-added dairy beverages, juices and packaged drinking water and features supporting infrastructure including a reverse osmosis water treatment plant, boiler, effluent treatment plant, diesel generator and air compressor. The facility also holds internationally recognised certifications, including FSSC 22000 and ISO 9001:2015, underscoring its food safety and quality management standards.

The acquisition comes as VBL prepares to broaden its product portfolio in Kenya. The company said its Kenyan subsidiary is also preparing to launch a range of carbonated soft drinks, suggesting the expanded manufacturing base will support both its existing non-carbonated beverage portfolio and future soft drink production.

While the transaction is a related-party deal, DFIL Kenya is part of the promoter group, VBL stated that the acquisition has been conducted on an arm's-length basis.

For VBL, the acquisition adds established manufacturing capacity in one of East Africa's key consumer markets while creating a platform for broader regional expansion.