PepsiCo buys Siete Foods for $1.2 billion

PepsiCo announced Tuesday that it is buying Mexican-American food company Siete Foods for $1.2 billion, marking the company's first food acquisition in about five years.

Like many food companies, Pepsi has tried to shift its portfolio toward healthier options in recent years, mostly through acquisitions. Recent additions include Bare Snacks, Health Warrior and PopCorners.

This will soon include Siete. Founder Veronica Garza started the company in 2014 when she started selling grain-free tortillas. Since then, the portfolio has grown to include tortilla chips, taco shells, salsas and condiments, often tailored to different dietary restrictions. Retailers like Goal, Kröger, Whole foods and CVS carry the company's products.

“We look forward to expanding our multicultural portfolio with these incredible products and helping even more consumers discover and enjoy Siete,” Pepsi CEO Ramon Laguarta said in a statement.

The transaction is expected to close in the first half of 2025, subject to regulatory approval.

Packaged food company deals have increased this year. They resort to acquisitions to boost sales growth as buyers buy less of their products. In August, M&M owner Mars announced it would buy parent company Pringles Kellanova in a deal worth nearly $36 billion. This March, Campbell soup completed its $2.7 billion acquisition of pasta sauce maker Sovos Brand from Rao.