Tortilla chips from Siete Foods
With thanks to: Siete Foods
PepsiCo said Tuesday it is buying Mexican-American food company Siete Foods for $1.2 billion, marking the company's first food purchase in about five years.
Like many food companies, Pepsi has tried to shift its portfolio toward healthier options in recent years, mostly through acquisitions. Recent additions include Bare Snacks, Health Warrior and PopCorners.
This will soon also apply to Siete. Founder Veronica Garza started the company in 2014, when she started selling grain-free tortillas. Since then, the range has expanded to include tortilla chips, taco shells, salsas and seasonings, often designed to accommodate various dietary restrictions. Retailers love Goal, Kroger, Whole foods and CFS transport the company's products.
“We look forward to expanding our multicultural portfolio with these incredible products and helping even more consumers discover and enjoy Siete,” Pepsi CEO Ramon Laguarta said in a statement.
The deal is expected to close in the first half of 2025, assuming regulatory approval is received.
Dealmaking has increased this year for packaged food companies, which are turning to acquisitions to boost sales growth as consumers buy fewer of their products. In August, M&M's owner Mars announced it would buy parent company Pringles Kellanova in a deal worth nearly $36 billion. This March, Campbell soup completed its $2.7 billion acquisition of Rao's pasta sauce maker Sovos Brand.
