US$7m Cheetos Plant Shifts Local Snacks

Zimbabwe’s fast-moving consumer goods sector is entering a decisive shift as Varun Zimbabwe moves to manufacture PepsiCo’s Cheetos locally, a development analysts said  will reshape the country’s snack market and strengthen agro-industrial linkages.

Takudzwa Noeashaenyi, a data analyst and AI enthusiast, said the move signals a transition from import-led distribution to value-adding production.

“Local manufacturing of Cheetos is not just a branding win, it changes the economics of the snacks industry by anchoring value creation inside Zimbabwe,” he said.

The development builds on Varun’s US$7 million investment announced in June 2024, which is now being translated into production capacity

. Until now, Cheetos has been sold locally as an imported product, alongside other global brands distributed by Varun, including Lay’s, Doritos and Simba.

According to Noeashaenyi, the most immediate impact will be felt beyond retail shelves.

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“Local Cheetos production will increase domestic maize sourcing, which directly links farmers to industrial demand and reduces exposure to foreign currency pressures caused by imports,” he noted.

He  said  the shift could stabilise supply and pricing in a market historically vulnerable to import disruptions, while positioning Zimbabwe for potential regional snack exports if output scales up.

Varun’s expansion plans extend beyond snacks. The company is also preparing to introduce Carlsberg beer into Zimbabwe, with distribution expected to begin in April as a pilot phase.

A dedicated bottling line is planned for commissioning in 2027, further deepening the firm’s manufacturing footprint.

Analysts view the phased approach as a long-term investment strategy rather than a short-term market entry.

“Moving from snacks to beverages shows confidence in local production systems and consumer demand,” Noeashaenyi said.

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