HARARE – Varun Beverages’ reported interest in acquiring a controlling stake in Dairibord Holdings is increasingly being viewed by business analysts as a strategic response to mounting pressure on its core beverages business, rather than simply another expansion opportunity.
Writing on his X platform, business analyst Tinashe Mukogo of Money & Moves argued that the reported acquisition makes greater strategic sense when viewed against the backdrop of weakening financial performance in Varun Beverages’ core operations.
According to Mukogo, the company has experienced declining revenues and shrinking profit margins, driven by the impact of Zimbabwe’s sugar tax as well as intensifying competition from Delta Corporation and other beverage producers.
“The most concerning issue is the revenue drop from US$194 million in 2024 to US$184 million in 2025, at a time when other players have been growing revenue by around 15%,” Mukogo observed.
He said the contrasting performance suggests the company may be losing momentum in its traditional beverages business, prompting management to pursue diversification into adjacent food and beverage categories, including snacks, beer and dairy.
Business analysts say such a strategy would mirror global consumer goods trends, where companies facing slower growth increasingly seek acquisitions to diversify revenue streams, strengthen brand portfolios and unlock operational synergies.
“The reported pursuit of Dairibord appears consistent with that strategy,” Mukogo said. “With the core business under pressure, adding scale and strong brands elsewhere becomes an attractive way to offset the slowdown, and Dairibord fits that logic.”
Analysts note that Dairibord offers an established portfolio of household brands, including Cascade fruit juices and Pfuko Maheu, alongside a sizeable manufacturing footprint. The company generated approximately US$137 million in revenue during 2025, making it one of Zimbabwe’s largest food and beverage manufacturers.
A successful acquisition would also provide Varun with immediate exposure to the dairy segment while expanding its presence beyond carbonated soft drinks into higher-growth food and nutrition categories.
Mukogo further noted that the reported transaction would be consistent with Varun Beverages’ acquisition-led growth strategy across Africa.
The company has actively expanded through acquisitions in South Africa, purchasing The Beverage Company (BevCo) for approximately US$158.3 million in 2024, acquiring Twizza for around US$125 million in 2026, and buying Crickley Dairy for roughly US$14.3 million earlier this year.
Business analysts say those transactions demonstrate a deliberate strategy of building regional scale through acquisitions while broadening the company’s product portfolio beyond its traditional beverage operations.
Should the reported Dairibord deal materialise, it would rank among Zimbabwe’s most significant consumer sector acquisitions in recent years, potentially reshaping competition across the country’s food and beverage industry while reinforcing the growing role of mergers and acquisitions as a driver of corporate growth.
