PepsiCo has announced plans to acquire Siete Foods, a Mexican-American food company, for $1.2 billion.
This acquisition marks PepsiCo’s first major food deal in five years as it continues to expand its portfolio to include healthier, dietary-conscious products.
Siete Foods, founded in 2014 by Veronica Garza, specializes in grain-free tortilla chips, taco shells, and other products tailored to meet various dietary restrictions. Its offerings, which are sold by major retailers like Whole Foods, Target, and CVS, have grown in popularity due to rising consumer demand for gluten-free and health-conscious foods.
PepsiCo’s move to acquire Siete is part of a broader trend in the packaged food industry, where companies are turning to acquisitions to drive growth amid slowing demand for traditional products. PepsiCo has made similar moves in the past, acquiring brands like Bare Snacks and PopCorners to diversify its offerings.
PepsiCo CEO Ramon Laguarta expressed excitement about the deal.
“We look forward to expanding our multicultural portfolio with these incredible products,” Laguarta stated.
The deal is expected to close in the first half of 2025, pending regulatory approval.
This acquisition comes as PepsiCo prepares to report its third-quarter earnings, with analysts predicting continued challenges in the snacks sector. Despite this, PepsiCo’s stock showed a slight gain following the announcement of the Siete Foods deal.
With input from CNBC, Market Watch, Yahoo Finance.
