BUSINESS STRATEGY

PepsiCo opens new US$41m potato chip production line in South Africa

By our African Marketing Confederation News Team | 2024

Company says expanding its production capacity is an important move to meet the growing demand in SA for its snack brands.

PepsiCo South Africa has opened a new US$41–million (R746–million) potato chip production line at its factory in Isando, just outside Johannesburg.

Photo: PepsiCo South Africa

The investment will enhance local production and reduce demand for imported products into the Southern African market. It will also boost export opportunities for PepsiCo SA. 

 

The company operates four potato chip production lines across three plants, all running at more than 85% capacity. Adding this new line will increase the production capacity of the facility by 29% and increase efficiency in the supply chain. 

 

“Expanding our potato chip production capacity is an important move to meet the growing demand for South Africa’s much-loved snacks,” says Riaan Heyl, CEO of PepsiCo South Africa. 

 

“Alongside creating new jobs, this new line shows our commitment to innovation and efficiency, as we continue to deliver high-quality products to people.” 

 

The Isando plant is close to major potato-growing areas, and its central position eliminates the need for cross-country shipments of potato chips from the company’s Parow (Western Cape province) and Durban (KwaZulu-Natal province) operations.  

 

New plant will deliver transport efficiencies 

 

According to PepsiCo, this will deliver transport efficiencies and reduce greenhouse gas emissions by eliminating 2.2-million kilometres, or over 2,300 cross-country shipments, annually. 

 

“This investment aligns with our long-term strategy to innovate and grow sustainably, ensuring that we are one of the leading food and beverage companies in South Africa,” Heyl says.  

 

“We are excited about the potential for this investment to drive economic growth and job creation.” 

 

According to Trendtype, the emerging markets consultancy, in March 2024, Indian-based Varun Beverages completed its acquisition of Southern African PepsiCo bottler, The Beverage Company (Bevco). Bevco is the PepsiCo bottler for South Africa, Lesotho and Eswatini and has the distribution rights for Botswana and Namibia. 

 

In July this year, PepsiCo announced that it would sell the rights to its Marmite and Bovril spreads brands in South Africa to Anchor Yeast, part of Canada’s Lallemand group. The deal will close by the end of 2024. Although Marmite and Bovril are owned by Unilever, PepsiCo inherited the licence for the South African market when it acquired Pioneer Foods. 

 

“PepsiCo is making a big push in Southern Africa,” Trendtype comments. “The combination of PepsiCo’s international brand portfolio, innovation and market capabilities with Pioneer Foods’ local manufacturing, strong Southern African brands and distribution network, is being used to reshape the broader food sector in the region, with a focus on added-value brands.”

View all articles »
author avatar
Rozanne
See Full Bio
0
    Your Cart
    Your cart is emptyReturn to Shop
    Continue Shopping

    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.