PepsiCo agrees to buy Chinese snack brand Be & Cheery for $705 million
PepsiCo Inc has agreed to buy the China-based snack brand Be & Cheery from Haoxiangni Health Food Co Ltd for $705 million, according to the companies.
Haoxiangni said, in a separate filing, that its decision to sell the snack brand was so that it could focus on its jujube production business.
According to the jujube maker, the transaction was subject to shareholder votes as well as certain approvals and customary conditions.
PepsiCo, the U.S. based company most known for its Pepsi beverage, said that its acquisition of Be & Cheery was a pivotal step in the company’s goal to be considered a leading food and beverage company in China.
“Be & Cheery adds direct-to-consumer capability, positioning us to capitalize 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,” Ram Krishnan, CEO of PepsiCo Greater China, said in a statement on Sunday.
“We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”