PepsiCo has entered into a definitive agreement to acquire Be & Cheery (Hangzhou Haomusi Food Co., Ltd.), one of the largest online snacks companies in China.
It is acquiring the company from Haoxiangni Health Food for $705 million.
PepsiCo said the deal marks an important step in its goal to become China’s leading consumer-centric food and beverage company. It’s been operating in China for nearly 40 years.
Based in Hangzhou, Be & Cheery sells its nuts, dried fruits, meat snacks, baked goods and confectionery products predominantly through the major e-commerce platforms in China. Its strong data-led innovation capability and flexible manufacturing and sourcing enables it to quickly adjust its product portfolio to respond to changing consumer trends, according to PepsiCo.
“Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset light model, and focus on e-commerce,” said Ram Krishnan, CEO of PepsiCo Greater China. “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 capitalize 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.”
Krishnan said the company also expects to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets.
PepsiCo's food and beverage portfolio includes 23 brands that generate more than $1 billion each in estimated annual retail sales.