American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

PepsiCo nearing $1 billion acquisition deal for Siete Foods?

by admin October 1, 2024
October 1, 2024
PepsiCo nearing $1 billion acquisition deal for Siete Foods?

PepsiCo Inc. (PEP.O) is in advanced discussions to purchase Texas-based tortilla-chip maker Siete Foods for more than $1 billion, according to sources cited by the Wall Street Journal.

The Garza family, which owns and operates Siete Foods, has built a popular brand known for its grain-free snacks and tortillas.

While a deal could be announced soon, the sources caution that negotiations could still fall through.

Siete Foods has attracted significant interest from private equity firms and other food companies, making the sale process competitive.

PepsiCo’s strategy amid changing consumer preferences

The potential acquisition aligns with PepsiCo’s strategy to expand its footprint in the growing market for healthier, alternative snacks.

Amid inflation and shifting consumer preferences toward private-label brands, companies in the US packaged food sector are looking to scale up.

Siete Foods’ appeal stems from its focus on health-conscious consumers, with its grain-free, dairy-free products finding a dedicated customer base.

PepsiCo has faced challenges in maintaining its snack and soda demand in its largest market, the United States.

Rising inflation and increased competition from private-label brands have led to declining sales volumes, even as the company raised prices to offset inflationary pressures.

Siete Foods: a family-owned success story

Founded by the Garza family, Siete Foods has grown into a major player in the better-for-you snack space.

All seven members of the Garza family are actively involved in running the business.

Their dedication to health-focused and culturally inspired products has resonated with consumers, positioning Siete as a highly attractive acquisition target.

The acquisition talks with PepsiCo come amid heightened dealmaking activity in the US packaged food sector, where companies are striving to meet evolving consumer demand while grappling with cost pressures.

PepsiCo faces pressures on North American sales

Despite the potential growth opportunities from this acquisition, PepsiCo is facing headwinds in its North American operations.

The Quaker Foods North America (QFNA) segment, in particular, has struggled with product recalls and soft demand.

Contamination issues, such as a Salmonella recall in some cereal and snack products, have negatively impacted PepsiCo’s organic sales, reducing them by 60 basis points in the second quarter of 2024.

Additionally, PepsiCo’s aggressive price hikes to combat rising inflation have led to lower sales volumes, as cost-conscious consumers shift their spending toward more affordable alternatives.

These trends have weighed on PepsiCo’s North American top-line performance, though the company continues to hold strong investor expectations.

PepsiCo stock performance

In the last three months, PepsiCo’s shares have gained 4.3%, trailing the broader industry’s 8.2% growth and the Consumer Staples sector’s 9.6% return.

Despite these challenges, PepsiCo’s stock performance has matched the S&P 500 during the same period, reflecting ongoing investor confidence in the company’s long-term growth prospects.

If the Siete Foods acquisition materializes, it would mark a significant move for PepsiCo as it navigates a shifting marketplace, aiming to bolster its portfolio with healthier, alternative snack options.

The post PepsiCo nearing $1 billion acquisition deal for Siete Foods? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Futu Holdings stock: is it safe to buy China’s Robinhood?
next post
Rolls-Royce share price surged: is Tufan Erginbilgiç just lucky?

Related Posts

Virtu Financial stock price target: to hit $52...

January 21, 2025

Brazil’s Lojas Renner shares slide despite solid Q2...

August 9, 2025

Short DE40: bearish momentum intensifies as key support...

March 29, 2025

DIVO: Is this JEPI ETF alternative a good...

October 23, 2024

Retail investors defy headwinds to trade record $6.6...

July 7, 2025

Dow tumbles 475 points, S&P 500 suffers worst...

April 14, 2024

UAW challenges Mercedes-Benz union vote, asks NLRB for...

May 28, 2024

Amazon to invest another $4 billion in AI...

November 23, 2024

Worldcoin price jumps as World Assets offloads $135M...

May 22, 2025

Indian equity markets remain volatile; Nifty Bank, ONGC...

October 4, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • FBI raid on John Bolton’s home in Washington linked to classified documents

      August 25, 2025
    • Argentine senate deals blow to Milei’s austerity agenda with university budget boost

      August 25, 2025
    • Jackson Hole Symposium: what Powell said about economic effects of Trump’s tariffs

      August 25, 2025
    • At Jackson Hole, Fed Chair Powell signals possible cuts while warning of uncertainty

      August 25, 2025
    • Trump threatens to fire Fed Governor Lisa Cook amid mortgage fraud allegations

      August 25, 2025

    Categories

    • Business (3,763)
    • Investing (2,783)
    • Latest News (2,048)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved