PepsiCo acquires Siete Foods for $1.2B as it eyes the Mexican-American food category

PepsiCo (NASDAQ:PEP) confirmed on Tuesday that it struck a deal Siete for $1.2 billion.

Siete Foods was founded in 2014 by Veronica Garza and her family in Austin, Texas. The company specializes in grain-free and dairy-free Mexican-American foods. Siete Foods offers various products, including tortillas, tortilla chips, and seasonings, made from alternative ingredients like almond flour and cassava. By 2022, it became one of the fastest-growing Latino food brands in the U.S., projecting sales of $250 million. The company’s distribution has expanded recently to include Target (TGT) and Kroger (KR) grocery stores.

PepsiCo (PEP) expects that the acquisition will complement its portfolio with the addition of an authentic, Mexican-American brand, while also growing its better-for-you food offerings.

“Siete products will bring a rich, new aspect to the PepsiCo multicultural portfolio with delicious food that plays an important role in meal occasions and culinary experiences.”

PepsiCo (PEP) said it looks forward to expanding its multicultural portfolio with the new products.

The deal is subject to customary closing conditions, including regulatory approval, and is expected to close in the first half of 2025. Additional terms of the acquisition were not disclosed.

PepsiCo’s (PEP) recent major acquisitions include picking up SodaStream for $3.2 billion in 2018, Pioneer Foods in South Africa for $1.7 billion in 2019, Rockstar Energy for $3.85 billion in 2020, and BFY Brands for an undisclosed amount in 2020.