PepsiCo Acquires Siete Foods for $1.2B

Better-for-you staples are breaking through.

The news: PepsiCo acquired Mexican-American snack brand Siete Foods, known for its grain-free versions of cultural staples.

The 10-year-old company is expected to hit $500M in annual revenue by EOY.

Melting pot. Initially designed for Latinos with dietary restrictions, the family-owned company’s products span almond flour tortillas and chips, wedding cookies, sauces, salsas, and more.

Hitting the mark, it raised $90M from Stripes in 2018 and added actress Eva Longoria as an investor this year. Now, PepsiCo will look to bolster its multicultural and better-for-you portfolios.

Same but different. Recreating cultural comfort foods without artificial flavors—while lowering sodium and sugar—has proven profitable for upstarts.

Vietnamese-owned Omsom was acquired by DayDayCook in June, while Creole-inspired A Dozen Cousins and Middle Eastern-made Maazah have made their way to major retailers.

Takeaway: Across cultures, healthy convenience is in demand. But, when it comes to ethnic foods, authenticity is key — meaning upstarts have a rare R&D edge on corporations.