Breaking news: PepsiCo snaps up Siete Foods for $1.2bn

PepsiCo has officially announced a definitive agreement to acquire Siete Foods for $1.2bn.

Siete – known for its grain-free tortillas, snacks, sauces and other products catering to a range of dietary preferences – will become part of PepsiCo’s diverse portfolio.

Founded in 2014 by the Garza family, Siete has grown from a small family venture into a leading brand in the better-for-you segment. The company was born out of the Garza family’s desire to create grain-free, dairy-free alternatives that cater to health-conscious consumers, including those following gluten-free, paleo and vegan diets. With products ranging from tortillas and enchilada sauces to chips and salsas, Siete has developed a loyal customer base across major retailers in the US.

PepsiCo’s Chairman and CEO, Ramon Laguarta, has expressed his excitement about the bolt-on, emphasizing that Siete’s commitment to authentic, heritage-inspired food resonates with PepsiCo's values.

“The Garza family has built a very special brand,” he said in a statement.

“Their passion for making and sharing food shines through in every Siete product and that's a passion we share at PepsiCo. We believe in the spirit and authenticity of the Siete brand and we're excited to carry on the legacy created by the Garza family.”

PepsiCo views this move as an opportunity to bring Siete’s inclusive, health-focused products to even more consumers, complementing its existing portfolio with another high-growth, culturally relevant brand.

Siete’s impact and future growth with PepsiCo

Siete was created with the mission of making Mexican-American, grain-free foods accessible to consumers looking for cleaner, allergen-friendly products.

“Siete was created 10 years ago to make heritage-inspired, Mexican-American food more widely available. Now we’re excited to embrace a new era with PepsiCo and bring our inclusive, better-for-you products to more people,” said CEO and cofounder Miguel Garza.

“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.”

With PepsiCo’s extensive distribution network and resources, Siete is poised for significant growth. PepsiCo’s backing will allow the brand to reach a wider audience – including international markets – and invest in innovation to meet the evolving industry demands. Meanwhile, Siete’s inclusion in PepsiCo’s multicultural portfolio will strengthen the snacking giant’s position in the better-for-you segment, where demand for clean-label, allergen-free and plant-based options continues to rise.

Competitive landscape

The acquisition comes at a time of heightened competition and consolidation within the US packaged food sector. Rising costs and inflation have prompted many companies to seek opportunities to scale up and diversify their portfolios. PepsiCo’s move to acquire Siete reflects the broader industry trend of acquiring health-focused brands to meet growing consumer demand for nutritious, sustainable and culturally relevant foods.

On the other hand, PepsiCo – already a leader in the global snack and beverage markets – has faced challenges due to inflationary pressures and increased competition from private-label brands. This bolt-on will help the Purchase, NY-headquartered company tap into consumer preferences for healthier snack options, a category that continues to see rapid growth. PepsiCo’s portfolio already includes successful better-for-you brands like Quaker, Bare Snacks and Tropicana: the Siete brand will further enhance its ability to compete in the evolving health landscape.

Moreover, as consumer preferences shift toward more diverse and authentic food experiences, brands like Siete, with its focus on Mexican-American cuisine, are becoming increasingly valuable. PepsiCo has recognized this trend and is investing in brands that reflect the rich cultural diversity of its customer base.

PepsiCo’s sustainability goals

In its announcement, PepsiCo said the move also aligns with the PepsiCo Positive (pep+) initiative. This strategic vision places sustainability and human capital at the center of long-term growth plans, aiming to create value through environmental stewardship and positive social impact. By acquiring brands like Siete, PepsiCo is doubling down on its commitment to offering planet-friendly snacks.

The acquisition is subject to regulatory approval and is expected to close in the first half of 2025. Once finalized, PepsiCo said the Garza family’s continued involvement will be key in preserving the authenticity and heritage that have made Siete so successful.