PepsiCo Acquires Siete Foods for $1.2 Billion

(Reuters) – PepsiCo (NASDAQ: PEP) announced on Tuesday that it will acquire Garza Food Ventures, the parent company of Siete Foods, for $1.2 billion. This acquisition aims to strengthen PepsiCo’s snacking portfolio amid a growing trend of consumers opting for private-label brands due to cost concerns.

Siete Foods, backed by actor Eva Longoria, is renowned for its grain-free tortilla chips and taco shells, and also produces enchilada sauce and Mexican wedding cookies. Their products are available in 40,000 retail outlets across the U.S., including Target and Whole Foods.

Founded in 2014 by Veronica Garza, Siete Foods is owned and operated by seven members of the Garza family. As consumers have increasingly turned to affordable private-label brands following several quarters of price hikes by packaged food manufacturers, the deal reflects a robust trend in the packaged food industry. Notably, in August, Snickers maker Mars acquired Kellanova, the maker of Pringles, for nearly $36 billion.

PepsiCo is actively working to diversify its price tiers and introduce new flavors under well-known brands like Lay’s, Doritos, and Cheetos to bolster their appeal. Despite a 4% drop in its North American snacking volumes reported in July, the company is scheduled to release its third-quarter earnings next week.

The acquisition is expected to be finalized in the first half of 2025. The Wall Street Journal first reported on Monday that PepsiCo was in advanced negotiations to buy Siete Foods. Following this announcement, PepsiCo’s shares rose nearly 1% in late-morning trading.