PepsiCo has officially announced its acquisition of Siete Foods, a Mexican-American snacks company, for $1.2 billion. This strategic move aligns with current trends in the food and beverage industry, focusing on healthier snack options.
Following a report from The Wall Street Journal on September 30 regarding ongoing negotiations, PepsiCo confirmed its intention to acquire the Texas-based Siete Foods. The well-known maker of Doritos emphasized that this acquisition would enhance its product range by integrating a genuine Mexican-American brand, expanding its offerings of better-for-you food.
Founded in 2014 by Veronica Garza and her family in Austin, Texas, Siete Foods specializes in grain-free and dairy-free Mexican-American cuisine. Their product lineup includes tortillas, tortilla chips, and seasonings, crafted from alternative ingredients like almond flour and cassava, appealing to the growing consumer demand for health-conscious options.
Ramon Laguarta, PepsiCo’s chairman and CEO, remarked: “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 further noted, “PepsiCo believes in the spirit and authenticity of the Siete brand, and we’re excited to carry on the legacy created by the Garza family. We look forward to expanding our multicultural portfolio with these incredible products and even more consumers discovering and enjoying Siete.”
In addition to this acquisition, Siete Foods has garnered attention in the investment landscape. Earlier this year, actress Eva Longoria made an undisclosed investment in the company and is providing strategic advice. The company aims to boost its annual revenue from $500 million to $1 billion, reflecting broader food and drink consumer trends.
Veronica Garza developed the first product, an almond flour tortilla, while adopting a grain-free, low-inflammation diet to manage her auto-immune disorders. This initiative has grown into a family-run enterprise that continues to emphasize health and heritage.
Siete’s journey also included securing a $90 million minority investment from Stripes Group in 2019, showcasing its potential for future growth. “Siete was created ten 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 Miguel Garza, CEO and co-founder of Siete Foods. He added, “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.”
The acquisition is projected to finalize in the first half of 2025, pending standard closing conditions. This deal not only signifies a significant shift in the food and drink business landscape but also highlights the increasing importance of diverse and health-centric brands in the market.
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