- The acquisition is an integral step towards becoming a major consumer food and beverage name across China
- The transaction is subject to Haoxiangni shareholder vote, customary conditions and regulatory approvals
In a bid to expand its footprint in China, New York based food, snack and beverage multinational – PepsiCo Inc. has reportedly purchased Be & Cheery- a Chinese snack brand from Haoxiangni Health Food Co. Ltd. for approximately USD 705 million.
Reportedly, Be & Cheery’s products comprise of nuts, meat snacks, dried fruits, confectionery items and baked items that are widely sold across prominent e-commerce platforms in China.
According to Ram Krishnan, CEO of PepsiCo in Greater China, the purchase of Be & Cheery allows the company to capitalize on the rapid growth in e-commerce and a local brand which carries the ability to stretch across a wide portfolio of products both online and offline.
Additionally, the company is aiming at utilizing the innovation and consumer insight abilities of Be & Cheery to facilitate innovation in the operations of PepsiCo, he further added.
Reportedly the American multinational has been working on the Be & Cheery acquisition before the coronavirus outbreak that originated in China. Moreover, Pepsi shut down operations of one of its six manufacturing units in the countries to deal with the growing virus spread.
Based in the eastern city of Hangzhou, Haoxiangni revealed in a separate filing that it is keen on the sale since it wants to focus on its jujube production.
Established in the year 2003, Be & Cheery is one of the major snack companies in China, showcasing revenues of close to USD 711.7 million in the year 2019.
For the record, last year Pepsi purchased Pioneer Foods Group Ltd. based in South Africa for close to USD 1.6 billion.