PepsiCo to buy tortilla-chip maker Siete Foods for $1.2 billion
Adds background throughout
Oct 1 (Reuters) -PepsiCo PEP.O will buy Siete Foods parent Garza Food Ventures for $1.2 billion, the Frito-Lay owner said on Tuesday, beefing up its snacking portfolio amid a shift to private-label brands among cost-conscious consumers.
The company, backed by actor Eva Longoria, is known for grain-free tortilla chips and taco shells. It also makes products such as enchilada sauce and Mexican wedding cookies.
Siete's products are distributed across 40,000 retail outlets in the U.S., including at Target and Whole Foods.
The Texas-based company, founded in 2014 by Veronica Garza, is owned and run by seven members of the Garza family.
Consumers have turned to more affordable private-label brands for their snacking needs after several quarters of price hikes by packaged food makers to soften the blow from higher input costs.
Meanwhile, deal-making in the packaged food industry has also been robust. Snickers maker Mars bought Pringles maker Kellanova K.N in a nearly $36 billion deal in August.
PepsiCo has been working to diversify its price tiers, and offer new flavors under popular brands such as Lay's, Doritos and Cheetos to help enhance their appeal.
Volumes for its snacking business in North America fell 4% in the most recently reported quarter in July. The company is scheduled to report its third-quarter earnings next week.
The transaction is expected to close in the first half of 2025.
The Wall Street Journal first reported on Monday that PepsiCo was in advanced talks to buy Siete Foods.
PepsiCo's shares were up nearly 1% in late-morning trading.
Reporting by Juveria Tabassum; Editing by Janane Venkatraman and Sriraj Kalluvila
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
