Beverage cola giant, PepsiCo Inc. has agreed to buy Chinese snack brand Be & Cheery from local jujube maker Haoxiangni Health Food Co Ltd for $705 million, the companies said.
The U.S. multinational food and beverage maker said the acquisition of Be & Cheery, which sells snacks from nuts to dried fruits mainly on Chinese e-commerce platforms, was an important step in its goal to become China’s leading consumer-focused food and Beverage Company, Reuters reported.
“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,” Ram Krishnan, CEO of PepsiCo Greater China, said in a statement on Sunday.
According to Reuters Haoxiangni, which is based in the eastern city of Hangzhou, it said in a separate filing that it had decided to sell as it wanted to focus on the jujube business. Founded in 2003, Be & Cheery is one of the largest online snack companies in China and reported revenues of about 5 billion yuan ($711.7 million) in 2019, the companies said.
It was reported that the transaction is subject to a Haoxiangni shareholder vote, certain regulatory approvals, and other customary conditions.