Multinational food and beverage maker, PepsiCo Inc, has announced plans to acquire Chinese snack brand, Be & Cheery, from Haoxiangni Health Food Co Ltd.
This development, according to the firm, is to strengthen PepsiCo’s global brand penetration as it eyes a giant market share in China’s consumers market.
Commenting on the acquisition, Chief Executive Officer PepsiCo Greater China, Ram Krishnan, stated that the deal was an important step in the company’s goal to become China’s leading consumer-focused food and beverage company.
“Be & Cheery adds direct-to-consumer capability, positioning us to capitalise on continued growth in e-commerce, and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels.
“We also expect to leverage Be & Cheery’s innovation and consumers insight capabilities to drive innovation in other key PepsiCo growth markets,” Krishnan explained.
Haoxiangni, in a statement, also revealaed that it had decided to sell its Be & Cheery business in order to focus on its jujube business.
The acquisition deal went for $705 million.