PepsiCo, Inc. an American multinational food, snack, and beverage corporation agreed to buy Chinese snack brand Be & Cheery. It purchases the brand from local jujube maker Haoxiangni Health Food Co Ltd. According to the companies, the sale takes place for $705 million.
The multinational food and beverage maker from the United States says the acquisition of Be & Cheery is an important step. Be & Cheery sells snacks from nuts to dried fruits, mainly Chinese e-commerce platforms. With the acquisition, PepsiCo further focuses to become China’s leading consumer-focused food and beverage company.
According to Ram Krishnan, CEO of PepsiCo Greater China, Be & Cheery adds direct-to-consumer capability. It positioning the brand to capitalise on continued growth in e-commerce. It also is a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels.
“We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets,” comments Krishnan. Haoxiangni, based in the eastern city of Hangzhou, commented it had decided to sell Be & Cheery's as it wanted to focus on the jujube business.
Founded in 2003, Be & Cheery is one of the largest online snack companies in China. According to the company, its revenues of about 5 billion yuan ($711.7 million) in 2019. The transaction is subject to a Haoxiangni shareholder vote, certain regulatory approvals and other customary conditions.
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