Varun Beverages shares touched a day high of Rs 436.60 on Friday, after its Zimbabwe unit signed an exclusive Mondelez distribution deal.

Varun Beverages Zimbabwe, a subsidiary of the company, has signed an exclusive agreement with Mondelez South Africa to distribute chocolate, biscuit, candy and gum products across Zimbabwe.

The deal takes effect from 1 October and was disclosed to the exchanges on 24 September.

What makes it notable is that Varun Beverages plans to run this through its existing snacks and beverage distribution network in the country, so the company does not need to spend anything extra to set it up.

This isn’t the only development the company disclosed that day. In a separate filing, Varun Beverages also informed exchanges that its Chief Operating Officer, Manmohan Rupal Paul, has resigned, with 24 September marking his last working day.

The company has not yet named a replacement for the role.

For context, Varun Beverages is one of PepsiCo’s largest bottling partners outside the United States, and its operations already stretch across India as well as several international markets including Zimbabwe, Zambia, Morocco and South Africa.

The Mondelez tie up adds a new category to that existing footprint.

Shares of Varun Beverages closed at Rs 434.80 on the NSE, up 0.82% for the day, taking the company’s market capitalisation to around Rs 1,47,070 crore.

The stock has gained a little over 3% in the past week, though it remains down close to 11.6% since the start of the year. It currently trades well off its 52 week high of Rs 555.80, touched back in June.

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