PepsiCo said on Tuesday that it will pay $1.2 billion to acquire the Mexican-American food firm Siete Foods. This will be PepsiCo’s first food purchase in around five years.
Pepsi has been attempting, like many other food firms, to add healthy choices to its portfolio in recent years, generally by way of acquisitions. PopCorners, Health Warrior, and Bare Snacks are recent additions.
That will soon also encompass Siete. When founder Veronica Garza started selling tortillas devoid of grains in 2014, the business was born. Since then, its product line has expanded to include taco shells, salsas, sauces, and tortilla chips—all of which are frequently made to satisfy a variety of dietary needs. The goods of the firm are sold by retailers such as Target, Kroger, Whole Foods, and CVS.
Pepsi CEO Ramon Laguarta stated in a statement, “We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete.”
If all goes according to plan, the purchase should finalize in the first half of 2025. Packaged food firms have been busy this year closing deals; as consumers buy less of their goods, they are looking to acquisitions to boost sales growth.
The owner of M&Ms, Mars, stated in August that it will acquire Kellanova, the company that makes Pringles, in a deal that would be close to $36 billion. The $2.7 billion acquisition of Rao’s pasta sauce manufacturer Sovos Brand was finalized by Campbell Soup in March.
