US-based snacks and beverages giant PepsiCo has entered a direct-to-consumer deal in China with Hangzhou Haomusi Food Co.
Better known as Be & Cheery, PepsiCo has acquired the snacks business Hangzhou Haomusi Food from Haoxiangni Health Food Co. for US$705m. The Lay’s maker said it is seeking to “become China’s leading consumer-centric food and beverage company”.
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Based in the city of Hangzhou, Zhejiang province, Be & Cheery’s portfolio consists of nuts, dried fruits, meat snacks, baked goods and confectionery, sold mainly through e-commerce channels, with the added capability for custom-made products.
“The company’s strong data-led innovation capability and flexible manufacturing and sourcing enables it to quickly adjust its product portfolio to respond to changing consumer trends,” the statement noted.
Ram Krishnan, the chief executive of PepsiCo’s operations in Greater China, where the company has been operating for around 40 years, said: “Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset-light model, and focus on e-commerce.
“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 consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”
PepsiCo said the deal is subject to clearance from Haoxiangni’s shareholders, “certain regulatory approvals and other customary conditions”.
Haoqun Qiu, chairman of Be & Cheery, added: “Be & Cheery was founded to bring more people convenient and nutritious snacks. We believe PepsiCo’s strong branding and route-to-market capabilities, as well as a global supply-chain network, will help us deliver and expand on that mission. PepsiCo and Be & Cheery are jointly confident in the prospects for China’s snacks industry and share a commitment to invest in consumer-led and digitalised capabilities.”
