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Siete Foods Tortilla Chips
Courtesy of: Siete Foods
PepsiCo announced Tuesday the acquisition of Mexican-American food company Siete Foods for $1.2 billion, marking the company’s first food acquisition in about five years.
Like many food companies, Pepsi has tried in recent years to shift its portfolio to include healthier options, usually through acquisitions. Recent additions include Bare Snacks, Health Warrior and PopCorners.
Soon this will also include Siete. Founder Veronica Garza started the company in 2014, when she began selling grain-free tortillas. Since then, its line has expanded to include tortilla chips, taco shells, salsas and seasonings, often designed to accommodate different dietary restrictions. Retailers like Target, Kroger, Complete foods and CVS transport the company’s products.
“We look forward to expanding our multicultural portfolio with these incredible products and enabling even more consumers to discover and enjoy Siete,” Ramon Laguarta, CEO of Pepsi, said in a statement.
The deal is expected to close in the first half of 2025, assuming it receives regulatory approval.
Transactions have accelerated this year for packaged food companies, which are turning to acquisitions to drive sales growth as shoppers buy less of their products. In August, M&M owner Mars announced it would buy parent company Pringles. Kellanova in a deal valued at nearly $36 billion. This month of March, Campbell soup has completed the $2.7 billion acquisition of Rao’s pasta sauce maker Sovos Brand.