PepsiCo to expand “multicultural portfolio” with US$1.2B snack maker acquisition

PepsiCo is planning to acquire packaged food business Siete Foods in a US$1.2 billion deal to “bring a rich, new aspect” to its portfolio. The move will add Mexican-American foods like tortillas, salsas, seasonings, sauces, cookies and snacks to PepsiCo’s range of products.

The development comes as PepsiCo upgrades its facilities to introduce healthier snacks with chickpeas, which are classified as non-HFSS (high in fat, sugar and salt).

“Siete was created ten years ago to make heritage-inspired, Mexican-American food more widely available,” says Miguel Garza, CEO and co-founder of Siete Foods, which sells products in grocery stores, club stores and organic food retailers primarily across the US.

“We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it’s possible to build a thriving brand that honors our heritage and celebrates our culture.”

The transaction depends on customary closing conditions, including regulatory approval and is expected to close in the first half of 2025.

Rise of healthy snacking

Consumers seek a balance between taste and nutrition and often choose snacks they perceive as healthier, such as snacks with high protein claims and plant-based ingredients, Ingredion previously told Food Ingredients First. Nearly 63% of consumers opt for snacks made with premium ingredients and 69% choose delicious and healthy variants.

Consumers increasingly lean toward clean label and healthier options in snacks.Notably, consumers increasingly prefer clean label and healthier options, with a 23% increase in rice-based snacks launches and a 24% increase in vegetable-based snacks, indicates Innova Market Insights data from its Top 10 Trends 2024 report. Additionally, snack launches containing seaweed grew by 22%.

Siete Foods’ products target healthy snacking and are formulated to align with dietary needs and preferences. They include grain-free tortillas, enchilada sauces, taco seasonings, botana sauces, Mexican cookies, vegan beans, grain-free puffs and salsas. 

Besides Siete Foods, PepsiCo previously focused on healthy snacking by partnering with Beyond Meat to manufacture plant-based snacks and beverages and acquiring plant-based snack manufacturer Health Warrior in 2018.

In other major snack industry updates, Mars announced it will acquire Kellanova in a US$35.9 billion deal which is expected to unite the two snacking giants.