PepsiCo has signed a deal to acquire one of China’s biggest online snacks companies, Hangzhou Haomusi Food Co. (Be & Cheery), for US$705 million.
Be & Cheery, owned by Haoxiangni Health Food Co., creates products such as nuts, dried fruits, meat snacks, baked goods and confectionery which are sold through major online platforms in China.
“Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset light model, and focus on e-commerce,” Ram Krishnan, CEO of PepsiCo Greater China, said.
“As we look to accelerate growth in key markets around the world and further grow ‘in China, for China, with China’, 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.”
Haoqun Qiu, chairman of Be & Cheery said the brands are “jointly confident in the prospects for China’s snacks industry and share a commitment to invest in consumer-led and digitalized capabilities”.
The deal is subject to a Haoxiangni shareholder vote, certain regulatory approvals and other customary conditions.