PepsiCo has confirmed a deal to buy Mexican-American snacks maker Siete Foods for a fee of $1.2bn.
After The Wall Street Journal yesterday (30 September) revealed PepsiCo was in talks to buy Texas-based Siete Foods, the Doritos maker has today confirmed the acquisition.
The Lay’s brand owner said the deal will “complement PepsiCo's portfolio with the addition of an authentic, Mexican-American brand, while also growing its better-for-you food offerings”.
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.
Ramon Laguarta, PepsiCo's chairman and CEO, said: “The Garza family has built a very special brand. Their passion for making and sharing food shines through in every Siete product, and that's a passion we share at PepsiCo.
“PepsiCo believes in the spirit and authenticity of the Siete brand, and we’re excited to carry on the legacy created by the Garza family. We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete.”
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.
In 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.
“Siete was created ten years ago to make heritage-inspired, Mexican-American food more widely available. Now we're excited to embrace a new era with PepsiCo and bring our inclusive, better-for-you products to more people,” Miguel Garza, the CEO and co-founder of Siete Foods, said.
“We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it's possible to build a thriving brand that honors our heritage and celebrates our culture.”
The deal is expected to close in the first half of 2025, subject to customary closing conditions.
