PepsiCo is reportedly nearing a deal to acquire US-based tortilla-chip manufacturer Siete Foods for more than $1bn.
A deal for the Texas-based Siete Foods could be announced soon unless the talks fall apart, according to The Wall Street Journal which cited people familiar with the matter.
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The sale process for the business, which is owned by the Garza family, has drawn takeover interest from private-equity firms and other food companies, some of the sources familiar with the matter told the publication.
Just Food has contacted Doritos maker PepsiCo and Siete Foods for comment.
Siete Foods was founded in 2014 by Veronica Garza and her family in Austin, Texas. The company produces grain-free and dairy-free Mexican-American foods. Siete Foods offers products including tortillas, tortilla chips and seasonings, made from alternative ingredients like almond flour and cassava.
After being diagnosed with auto-immune disorders, Veronica Garza adopted a grain-free, low-inflammation diet in order to alleviate and manage her symptoms. She began experimenting with grain-free recipes for her family of seven (siete in Spanish), developing the almond flour tortilla, Siete’s first product. The company is still family-owned and operated by all seven members of the Garza family.
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By GlobalDataIn 2019, the company secured $90m by way of a minority investment in the business led by Stripes Group.
Meanwhile, earlier this year, actress Eva Longoria invested an undisclosed sum into Siete Foods and is now acting as a strategic adviser. The company is aiming to double revenue from $500m per year to $1bn.
Speaking after PepsiCo’s second-quarter results, the Lay’s owner reported that its Frito-Lay division, which covers salty snacks, saw operating profit and volumes fall during the three-month period as a result of faltering demand.
PepsiCo CEO Ramon Laguarta said: “This need for value or more value consciousness I think is impacting every household in the US. It is different levels of income. I think it’s impacting everybody.”
PepsiCo is due to report its third-quarter earnings on 8 October.
