PepsiCo Acquires Siete Foods: A Major Move for Austin’s Beloved Brand
In a landmark deal, PepsiCo announced its acquisition of Siete Foods for an impressive $1.2 billion, a move set to expand the beverage giant’s portfolio with authentic, Mexican-American offerings. This acquisition aligns perfectly with PepsiCo’s strategic emphasis on healthier food options and its commitment to diverse, multicultural brands, resonating with a dynamic consumer base.
Ramon Laguarta, chairman and CEO of PepsiCo, expressed excitement regarding the acquisition, highlighting the exceptional qualities of Siete Foods. “The Garza family has built a very special brand. Their passion for making and sharing food shines through in every Siete product, and that’s a passion we share at PepsiCo,” he stated. Laguarta underscored the importance of Siete’s authenticity and cultural significance, promising to honor the legacy created by the Garza family.
Siete Foods, co-founded by Veronica Garza in 2014, was born out of personal need when Garza, a University of Texas graduate, was diagnosed with autoimmune diseases during her high school and college years. Facing dietary restrictions, she and her family began transforming traditional Mexican recipes to meet her health requirements. Their success sparked the creation of Siete Foods, which now delivers grain-free tortillas, chips, and sauces to a growing market of health-conscious consumers. Today, Siete Foods enjoys widespread recognition and is a staple in popular grocery stores nationwide.
Miguel Garza, CEO and co-founder of Siete Foods, expressed enthusiasm about the acquisition, viewing it as a milestone for Latino entrepreneurs. “We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it’s possible to build a thriving brand that honors our heritage and celebrates our culture,” he stated. This sentiment reflects the brand’s ethos, which aims to celebrate and share the richness of Mexican culinary heritage while addressing modern dietary needs.
The deal, which marks a significant milestone for both companies, was facilitated by leading financial advisers. Centerview Partners LLC led the advisory team for PepsiCo, with Citi providing additional financial expertise. Legal advisers for the acquisition included Gibson Dunn & Crutcher LLP for PepsiCo and Weil, Gotshal & Manges LLP for Siete Foods, alongside other reputable firms.
Siete Foods’ meteoric rise demonstrates the growing demand for healthier, culturally diverse food products. This acquisition positions PepsiCo to further cater to consumers seeking authentic flavors without compromising on health, integrating Siete’s beloved offerings into its extensive portfolio.
As PepsiCo embraces Siete Foods, the acquisition not only signifies a promising future for the brand but also highlights the importance of representation in the food industry. The move is set to inspire aspiring Latino entrepreneurs and food innovators, showcasing that with dedication and creativity, it is indeed possible to bring authentic heritage to the forefront of a thriving culinary market.
As this new chapter unfolds, both PepsiCo and Siete Foods are poised to make waves in the industry, celebrating a shared vision of culture, health, and authenticity that appeals to a diverse range of consumers.
