South Africa: The Rohatyn Group sells BevCo to India's Varun Beverages
BevCo has a portfolio of its own brands and energy drinks, as well as franchise rights from PepsiCo.
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The Rohatyn Group (TRG) has announced the sale of The Beverage Company (BevCo), a South African-based beverage manufacturer and distributor, to India-based Varun Beverages, a leading bottler for PepsiCo.
BevCo was established in 2018 through the acquisition and merger of Little Green Beverages and SoftBev. The company has consolidated its position as the largest independently owned beverage producer and distributor in South Africa. BevCo has a wide portfolio of its own brands and energy drinks, as well as franchise rights from PepsiCo in South Africa, Lesotho, and Eswatini, and distribution rights for Namibia and Botswana. The company operates five manufacturing facilities across South Africa with an installed capacity of 3,600 bottles per minute.
TRG partner Jonathan Matthews commented, “Since 2018, the number of total employees at the company has increased nearly four times, and the company reached gross sales of approximately 63 million cases per year. The product offering also expanded, adding the manufacturing and distribution of PepsiCo brands in the region. The company has achieved growth through innovation in its products and services, regional expansion, and a focus on sustainable business practices.”
BevCo CEO, Peter Spies said, “Management and shareholders had a clear long-term aspiration for the business and remained focused on accelerating the execution of new revenue streams and building scale, while retaining alignment with key stakeholders. The sale of BevCo to Varun Beverages has proven that scaled South African businesses have the potential to attract global trade players to the continent.”
Glynn Potgieter, managing director at TRG, and board member of BevCo added, “The macro conditions in our markets continue to pose challenges to sale processes. We believe successful realisation strategies require years of strategic planning and building businesses that have unique, identifiable, and realisable value to a known universe of acquirers. We are convinced that successful exit processes in these challenging markets require skilled negotiation, resilience, tenacity, and, above all, a collaborative mindset.”
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