PepsiCo to acquire Stacy's Pita Chip Company
Stacy's is an all-natural snack company with strong growth potential that supports Frito-Lay's desire to participate more broadly in the $90 billion macrosnack category.
22/11/05 PepsiCo has announced its agreement, pending government approval, to purchase Stacy's Pita Chip Company -- the top-selling maker of pita chips with sales approaching $60 million this year. Stacy's, which will continue to be based in Randolph, MA, with more than 100 employees, is planned to operate as a separate unit and report to Frito-Lay North America chairman and chief executive officer Irene Rosenfeld.
Stacy's is an all-natural snack company with strong growth potential that supports Frito-Lay's desire to participate more broadly in the $90 billion macrosnack category. It compliments the company's growing portfolio of healthier snack options. Stacy's pita chips are distributed nationwide and have become the sales leader in the rapidly growing pita chip category. The company's pita chips come in five flavors and qualify for PepsiCo's Smart Spot, a symbol on select products to make shopping easier for families looking for healthier snack and beverage choices. Stacy's pita chips are baked, all natural and have no cholesterol or trans fats. Like Frito-Lay, Stacy's offers snack chips without trans fats and includes trans fat information on its packaging.
Stacy's Pita Chip Company was founded in 1997 by a social worker and a psychologist with a passion for good food and a commitment to healthy living. With a desire for a career in the food industry, but without the capital to open a restaurant, Stacy Madison and Mark Andrus began serving healthy pita bread roll-up sandwiches in Boston's Financial District. As an incentive for customers waiting in line, they baked the leftover pita bread to create different flavored chips and so the Stacy's Pita Chip Company was born.
Terms of the transaction were not disclosed.
Mark and Stacy always shared a passion for good food and a desire to open a restaurant. However, with large student loans and no capital they decided to take a risk by designing a food cart and serving healthy pita bread roll-up sandwiches. As an incentive, baked pita chips were served to customers waiting in line and they became an instant hit and the lines grew longer each day. Customers loved pita chips so much; they were encouraged to get the pita chips into stores. Thanks to loyal customers, Stacy's chips are now available nationwide.
Frito-Lay, based in Plano, TX, is the $10 billion convenient food division of PepsiCo, which is based in Purchase, NY.
PepsiCo is one of the world's largest food and beverage companies with annual revenues of $29 billion. Its principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. Its portfolio includes 16 brands that generate $1 billion or more in annual retail sales.
