PepsiCo is set to purchase Siete Foods, a Texas-based tortilla-chip company, for $1.2 billion, further expanding its snacking portfolio amid rising consumer demand for affordable private-label brands.
PepsiCo has announced its acquisition of Siete Foods, a Texas-based tortilla-chip manufacturer, for $1.2 billion. This move is part of PepsiCo’s strategy to bolster its snacking business as consumers shift towards private-label brands due to rising food prices. Siete Foods, founded in 2014 by Veronica Garza, is run by seven members of the Garza family and has gained popularity for its grain-free tortilla chips and taco shells.
Backed by actor Eva Longoria, Siete Foods’ product lineup also includes enchilada sauces and Mexican wedding cookies, which are sold in 40,000 retail outlets across the U.S., including major stores like Target and Whole Foods.
This acquisition comes as PepsiCo aims to diversify its offerings in response to changing consumer behavior. Recent price hikes by packaged food companies, aimed at offsetting higher input costs, have driven consumers to more cost-effective alternatives, pushing PepsiCo to strengthen its appeal with new flavours under brands like Lay’s, Doritos, and Cheetos.
Despite this expansion, PepsiCo’s North American snacking division saw a 4% decline in volume in its last reported quarter. The company will release its third-quarter earnings next week.
Meanwhile, the broader food industry has seen significant deal-making activity. In August, Snickers maker Mars acquired Pringles parent Kellanova in a $36 billion deal.
The transaction is expected to close in the first half of 2025. The Wall Street Journal first reported the advanced talks between PepsiCo and Siete Foods earlier this week.