PepsiCo has agreed to buy Chinese snack brand Be & Cheery from local jujube manufacturer Haoxiangni Health Food for $705 million, the companies stated.
The U.S. multinational food and beverage manufacturer stated the purchase of Be & Cheery, which sells snacks from nuts to dried fruits largely on Chinese e-commerce platforms, was an essential step in its objective to become China’s leading shopper-focused food and beverage firm.
“Be & Cheery adds direct-to-consumer functionality, positioning us to capitalize on visible growth in e-commerce, and a local brand that is able to expand across a broad portfolio of products, through each online and offline networks,” Ram Krishnan, CEO of PepsiCo Greater China, stated in an announcement Sunday.
“We also anticipate leveraging Be & Cheery’s innovation and consumer insights capabilities to drive innovation in different key PepsiCo growth markets.”
Haoxiangni, which is situated in the eastern city of Hangzhou, mentioned in a separate filing that it had determined to sell as it wanted to concentrate on the jujube business.
Incorporated in 2003, Be & Cheery is one of the largest online snack corporations in China and reported earnings of around 5 billion yuan ($711.7 million) last year, the businesses stated.
The deal is subject to a Haoxiangni shareholder vote, certain regulatory permissions, and other customary conditions, they stated.