PepsiCo to acquire Chinese snack brand Be & Cheery

Multinational food giant PepsiCo Inc, has disclosed plan to acquire Chinese snack brand, Be & Cheery, from Haoxiangni Health Food Co Ltd for US$705 million.
This plan is part of the group’s overall strategy to strengthen its global brand penetration with an eye on getting substantial market share in China consumer market.
PepsiCo Greater China CEO Ram Krishnan said that the deal is an important step in the company’s goal to become China’s leading consumer-focused food and beverage company. He added, “Be & Cheery adds direct-to-consumer capability, positioning us to capitalise 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. We also expect to leverage Be & Cheery’s innovation and consumers insight capabilities to drive innovation in other key PepsiCo growth markets.”
Its previous owner, Haoxiangni released a statement that it has decided to sell its Be & Cheery business in order to focus on its jujube (sweet and edible fruits) business.
Be & Cheery sells snacks including dried fruits and nuts mainly on Chinese e-commerce platforms, and is regarded by PepsiCo as an important entry point for it to become a major consumer-focused food and beverage company in the Asian country. It reported US$700 million in sales revenue in 2019.