PepsiCo has announced the acquisition of Mexican American food company Siete Foods for $1.2 billion, marking its first food-related acquisition in five years. This move is part of PepsiCo’s ongoing strategy to diversify its product portfolio with healthier, innovative food offerings.
Founded in 2014 by Veronica Garza, Siete Foods began with grain-free tortillas and has since expanded its range to include tortilla chips, taco shells, salsas, and seasonings, many of which are designed to accommodate various dietary restrictions. Siete’s products are available at major retailers like Target, Kroger, Whole Foods, and CVS, contributing to the brand’s growing popularity.
“We are excited to bring Siete Foods into our multicultural portfolio and introduce their incredible products to a wider audience,” said PepsiCo CEO Ramon Laguarta. PepsiCo sees this acquisition as an opportunity to further expand its presence in the health-conscious food market and attract a more diverse consumer base.
PepsiCo has been steadily shifting towards healthier snack options in recent years. Previous acquisitions include brands such as Bare Snacks, Health Warrior, and PopCorners, all of which have contributed to the company’s broader strategy of offering more nutritious choices. Siete Foods will soon join these brands, reinforcing PepsiCo’s commitment to healthier and innovative food offerings.
The deal is expected to be finalized in the first half of 2025, pending regulatory approval. This acquisition also highlights a broader trend in the food industry, where packaged food companies are increasingly turning to acquisitions to drive growth, particularly as consumer preferences shift towards healthier options.
In 2023, other major food industry deals have followed a similar trajectory. Mars, the parent company of M&M’s, announced a $36 billion acquisition of Pringles’ parent company Kellanova in August. Earlier this year, Campbell Soup completed its $2.7 billion acquisition of Sovos Brand, maker of Rao’s pasta sauces.
PepsiCo’s acquisition of Siete Foods underscores the growing demand for health-conscious, innovative food products, positioning the company for further success in this evolving market.
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