PepsiCo buys China’s online-focused “Be & Cheery” brand snack maker for $705 mil.
TOKYO, NNA – U.S. food and beverage giant PepsiCo Inc. has taken over a major Chinese snack maker known for its “Be & Cheery” brand for $705 million, in a move to further boost its presence in the world’s second-largest economy.
The company has completed the mega acquisition of Hanzhou Haomusi Food Co., one of the largest online snack companies in China, according to a report by The Paper, a local online media source.
PepsiCo announced in February it had entered into a definitive agreement to buy the Hangzhou-based company from Haoxiangni Health Food Co., Ltd. The deal was subject to regulatory approval.
The Be & Cheery brand holder, founded in 2003, offers many products including nuts, dried fruits, meat snacks, baked goods and confectionery. It mainly sells online through major e-commerce platforms in China, PepsiCo said in the statement on Feb. 23.
The acquired firm’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," it added.
“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 in the statement.
In a bid to accelerate growth in key markets around the world, “Be & Cheery adds direct-to-consumer capability, positioning us to capitalize on continued growth in e-commerce” in the world’s most populous nation, he added.
The online-focused Chinese food maker posted 5 billion yuan ($702 million) in revenue in 2019, according to PepsiCo.
The U.S. company has invested over $7.4 billion in China over the last 10 years or so, according to the local media report.