Global bottling giant Varun Beverages is strengthening its Eastern Cape footprint through a planned R238 million acquisition of local producer Crickley Dairy.
The deal will see its South African subsidiary, The Beverage Company (BevCo), acquire 100% of Crickley Dairy, subject to approval by the Competition Commission of South Africa.
Strategic Eastern Cape expansion
The acquisition forms part of Varun Beverages’ broader growth strategy in South Africa and follows its multi-billion rand purchase of soft drink manufacturer Twizza in 2025.
Twizza operates key production facilities in Queenstown and Middelburg, reinforcing the Eastern Cape’s role as a strategic manufacturing hub in the group’s regional operations.
Operational links drove combined deal
Twizza owner Ken Clark confirmed that the Crickley Dairy acquisition was driven by strong operational links between the two businesses.
The companies share infrastructure, including water supply and production systems, making a combined transaction more efficient.
Transition to continue through 2026
Clark, who has led the business for more than three decades, said the decision to sell was influenced by succession planning and timing.
The transaction is expected to be finalised by 31 December 2026, with the existing management team continuing to operate the business during the regulatory approval process.
Competition Commission approval and conditions
The Competition Commission has already approved BevCo’s acquisition of Twizza, subject to conditions. These include the inclusion of qualifying employees in an employee share ownership programme (ESOP) within 12 months of implementation and subject to existing terms.
The Commission found that the transaction is unlikely to substantially lessen or prevent competition in the beverage market.
Operations to continue as normal
Crickley Dairy shareholders confirmed in a statement that operations will continue uninterrupted during the transition period, with a focus on maintaining supply and supporting industry partners.
Both the Twizza and Crickley Dairy transactions remain subject to final regulatory approvals, with full implementation expected later in 2026.
