PEPSICO will be acquiring a popular food brand backed by a celebrity.
The food acquisition, worth $1.2 billion, is the first for the company in several years.
The celeb-backed company sells tortilla chips and more (stock image)[/caption]
An announcement on Tuesday confirmed Pepsi’s purchase of Siete Foods, co-founded by stand-up comedian Veronica Garza in 2014.
Garza initially sold grain-free tortillas but expanded the brand to include taco shells, seasonings, salsas, and, most notably, tortilla chips.
Each product was designed to accommodate customers with different dietary restrictions.
Siete Foods’ health-conscious moves were appealing to Pepsi, as it’s been trying to develop its portfolio to include more nutritious companies, including Health Warrior, PopCorners, and Bare Snacks, per NBC News.
“We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete,” Pepsi CEO Ramon Laguarta emphasized in Tuesday’s release.
Prominent retailers like Whole Foods Market, Target, Kroger, and CVS currently carry Siete Foods items, likely another appealing aspect to Pepsi.
The sweet deal is still awaiting regulatory approval, but it’s expected to officially close in early to mid-2025.
While the move is exciting for Pepsi, fans of Siete Foods have serious grievances about the proposed acquisition.
BUYER BACKLASH
Many argued that the brand would become significantly unhealthy with Pepsi at the helm.
“It was the only brand I knew that I could trust for gluten-free and vegan/paleo snacks that actually taste yummy. Now they’re going to be ruined,” an upset customer wrote in a thread on Facebook about the acquisition.
“So dissapointing!!! I loved the clean ingredients. I’m sure that will change,” another echoed.
“Oh no! I agree terrible news one of the few healthier options out here and now this,” wrote a third.
Others dubbed it “sad” and “disappointing” and even went as far as to threaten a boycott of Siete Foods should the deal go through.
“Hopefully everyone really DOES boycott them now! What a shame!!” a particularly frustrated customer exclaimed.
We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete.
Ramon Laguarta
ACQUISITION YEAR
Pepsi’s move also follows a trend among packaged food brands this year, according to NBC News.
Several have made acquisitions in efforts to improve sales as Americans buy less of their merchandise due to inflation and the cost of living.
Mars, which owns M&M’s and other candies, confirmed plans in August to acquire Pringles parent company Kellanova for around $36 billion, for example.
Earlier this spring, Campbell Soup also bought out Sovos Brand, the maker of Rao’s pasta sauce, for $2.7 billion.
Massive acquisitions have been announced this year for cellular carriers and retailers as well.
Kroger’s proposed $24.6 billion deal with Albertsons has seen significant backlash from the Federal Trade Commission (FTC).
T-Mobile also announced in May that it would buy US Cellular for $4.4 billion with “lower-priced” and “value-packed” plans.
