FDBusiness.com

PepsiCo has agreed to acquire Hangzhou Haomusi Food Co (Be & Cheery), one of the largest online snacks companies in China, from Haoxiangni Health Food Co for US $705 million. PepsiCo has been operating in China for nearly 40 years and this transaction marks an important step in the company’s goal to become China’s leading consumer-centric food and beverage company.

Based in Hangzhou, Be & Cheery has many product offerings across nuts, dried fruits, meat snacks, baked goods and confectionery, and predominantly sells online through the major e-commerce platforms in China. The company’s strong data-led innovation capability and flexible manufacturing and sourcing enables it to quickly adjust its product portfolio to respond to changing consumer trends.

“Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset light model, and focus on e-commerce,” says Ram Krishnan, CEO of PepsiCo Greater China. “As we look to accelerate growth in key markets around the world and further grow ‘in China, for China, with China’, Be & Cheery adds direct-to-consumer capability, positioning us to capitalize 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 consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”

The transaction is subject to a Haoxiangni shareholder vote, certain regulatory approvals and other customary conditions.