On Tuesday, PepsiCo announced that it will acquire Mexican-American food company Siete Foods for $1.2 billion. This marks Pepsi’s first food-related acquisition in roughly five years. This deal is not only a significant step for PepsiCo but also reflects the company’s long-term strategy to expand its portfolio of healthy and multicultural food products.
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In recent years, like many other food companies, PepsiCo has been trying to shift its portfolio toward healthier options, often through acquisitions. Some notable recent deals include Bare Snacks, Health Warrior, and PopCorners, all popular in healthy eating trends. Now, Pepsi will add Siete Foods to this growing list.
The story of Siete began in 2014 when Veronica Garza, the company’s founder, started selling grain-free tortillas. Initially, the company only had tortillas, but it has since expanded its portfolio to include tortilla chips, taco shells, salsas, and seasonings, particularly designed to accommodate various dietary restrictions. Siete’s products are now available at major retailers like Target, Kroger, Whole Foods, and CVS.
In announcing the acquisition, Pepsi CEO Ramon Laguarta stated: “We look forward to expanding our multicultural portfolio with these incredible products and to having even more consumers discover and enjoy Siete.” This is not just a business strategy but also an opportunity for PepsiCo to reach customer groups seeking diverse products that fit modern lifestyles.
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The deal is expected to close in the first half of 2025, assuming it receives regulatory approval. This is a critical move in a time when packaged food companies are increasingly turning to acquisitions to drive sales growth, as consumers are buying fewer products. Mars, the owner of M&M’s, announced plans to acquire Pringles’ parent company Kellanova in a deal valued at nearly $36 billion in August. Meanwhile, in March, Campbell Soup completed its $2.7 billion acquisition of Sovos Brands, the maker of Rao’s pasta sauce.
PepsiCo’s acquisition of Siete is more than just a business transaction; it represents a fusion of culture and taste. Siete’s success stems from its ability to meet consumer demand for products that are not only healthy but also cater to a variety of diets and lifestyles. This appeal has driven the brand’s growth over the years, and with the backing of a giant like Pepsi, Siete will have even more opportunities to expand and thrive.
