USA – PepsiCo Inc. announced its decision to acquire Garza Food Ventures LLC, the parent company of Siete Foods, for US$1.2 billion.
This strategic acquisition aims to enhance PepsiCo’s snack portfolio by integrating an authentic Mexican-American brand known for its grain-free tortilla chips and other heritage-inspired products.
The deal highlights a growing trend in the food industry as consumers increasingly seek healthier and more inclusive food options.
Founded in 2014 by Veronica Garza and her family, Siete Foods quickly became a staple in American households. It offers various products, including tortillas, salsas, seasonings, and cookies.
Siete’s products are available in over 40,000 retail locations across the United States, including major grocery chains like Target and Whole Foods.
“Siete was created ten years ago to make heritage-inspired, Mexican-American food more widely available,” said Miguel Garza, CEO and co-founder of Siete Foods.
He expressed excitement about the new partnership with PepsiCo, stating, “Now we’re excited to embrace a new era with PepsiCo and bring our inclusive, better-for-you products to more people.”
PepsiCo’s acquisition comes when consumers shift towards private-label brands due to rising costs associated with packaged foods.
The company has been actively working to diversify its offerings and adapt to changing consumer preferences.
PepsiCo has faced challenges in its North American snacking business recently, reporting a 4% volume decline during the last quarter.
This acquisition is vital in revitalizing its product lineup and appealing to a broader audience.
Ramon Laguarta, Chairman and CEO of PepsiCo, emphasized the importance of Siete’s brand identity: “The Garza family has built a very special brand. Their passion for making and sharing food shines through in every Siete product, and that’s a passion we share at PepsiCo.”
He further noted that this acquisition will allow PepsiCo to expand its multicultural portfolio with products that resonate with diverse consumers.
Pending regulatory approval and customary closing conditions, the deal is expected to close in the first half of 2025.
Centerview Partners LLC and Citi are PepsiCo’s financial advisors, while Gibson Dunn & Crutcher LLP provides legal counsel.
For Siete Foods, Lazard serves as the financial advisor alongside Weil, Gotshal & Manges LLP and Armbrust & Brown PLLC as legal advisors.
This acquisition not only positions PepsiCo to enhance its product offerings but also inspires other Latino businesses.
Miguel Garza remarked on this potential impact: “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.”
As PepsiCo continues to adapt to the evolving food landscape, this partnership with Siete Foods reflects its commitment to inclusivity and sustainability within the industry.
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