PepsiCo Inc. disclosed its official acquisition of Mexican American food maker Siete Foods for $1.2 billion in cash. The all-cash deal is described as the biggest food-related acquisition the company has undertaken since it purchased Quaker Foods in 2017. It represents a diversification of the offerings associated with better, healthier, more sustainable foods.
For the past couple of years, PepsiCo has been aggressively marketing these products by strategically acquiring some of the leading brands in Bare Snacks, Health Warrior, and Pop Corners. From this acquisition, the company clearly enjoys opportunities to tap into the emerging trend of healthy snacking.
The company’s hallmark is grain-free tortillas, but other products may include tortilla chips, taco shells, salsas, and seasonings within its offering repertoire. Brands are found in gluten-free, non-GMO, paleo-friendly products, and more diets than can be included in these facts make them attractive to health-conscious consumers. Products are available in the overwhelming majority of retailers, including Target, Kroger, Whole Foods, and CVS stores.
We’re excited to bring such stand-out products into our multicultural food portfolio and to see how many more consumers discover and enjoy Siete, says PepsiCo Chief Executive Ramon Laguarta. It would be wonderful to recall that interest in diverse food cultures in the market before health products started moving north, he comments.
The deal is likely to be sealed in the first half of 2025 following some regulatory approvals. It is just a ripple in an ongoing string of mergers and acquisitions of food companies interested in riding the new emerging consumer trends. This comes as the maker of M&Ms, Mars, said it plans to buy the owner of Pringles, Kellanova, for nearly $36 billion last week.
Acquiring Siete Foods is actually a strategic move in the competitive food snack environment because it enhances the firm’s attempts to provide healthier and diversified food options to the consumers it serves.
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