PepsiCo stated Tuesday that it’s purchasing Mexican-American food business Siete Foods for $1.2 billion, marking the business’s very first food acquisition in approximately 5 years.
Like numerous food business, Pepsi has actually been attempting to move its portfolio to consist of much healthier choices over the last few years, generally through acquisitions. Current additions consist of Bare Snacks, Health Warrior and PopCorners.
Quickly that will likewise consist of Siete. Creator Veronica Garza began the business in 2014, when she started offering grain-free tortillas. Ever since, its portfolio has actually grown to consist of tortilla chips, taco shells, salsas and spices, typically created to accommodate various dietary limitations. Merchants like Target, Kroger, Whole Foods and CVS bring the business’s items.
“We eagerly anticipate broadening our multicultural portfolio with these unbelievable items and much more customers finding and taking pleasure in Siete,” Pepsi CEO Ramon Laguarta stated in a declaration.
The offer is anticipated to close in the very first half of 2025, presuming it gets regulative approval.
Deal-making has actually gotten this year for packaged food business, who are turning to acquisitions to drive sales development as buyers purchase less of their items. In August, M&M’s owner Mars revealed it would purchase Pringles moms and dad Kellanova in an offer valued at almost $36 billion. This March, Campbell Soup finished its $2.7 billion acquisition of Rao’s pasta sauce maker Sovos Brand.