PepsiCo, Inc., one of the world’s largest food and beverage companies, has announced a definitive agreement to acquire Siete Foods, a rapidly growing Mexican-American brand, for a staggering $1.2 billion. This acquisition represents a significant move by PepsiCo to diversify and expand its portfolio, particularly in the growing “better-for-you” food market. Siete Foods is renowned for its heritage-inspired products, such as grain-free tortillas, salsas, and snack foods, all rooted in Mexican-American culinary traditions.

Siete Foods, founded by the Garza family in 2014, quickly rose to prominence by offering health-conscious and culturally inspired foods that cater to diverse dietary needs, including gluten-free and grain-free options. Its products are currently available in over 40,000 retail locations across the U.S. PepsiCo’s decision to acquire the Austin-based brand is aimed at strengthening its multicultural offerings while tapping into the health and wellness trends that continue to shape the industry.

The deal is set to close in the first half of 2025, pending regulatory approval and other customary closing conditions. PepsiCo CEO Ramon Laguarta expressed enthusiasm about the acquisition, highlighting that Siete’s commitment to authenticity and inclusivity aligns with PepsiCo’s broader vision of offering diverse products that cater to a global audience. He noted that Siete’s unique approach to food, rooted in the Garza family’s heritage, adds an exciting new dimension to PepsiCo’s multicultural portfolio.

Miguel Garza, CEO and co-founder of Siete Foods, expressed optimism about the brand’s future under PepsiCo’s ownership. He emphasized that Siete’s mission has always been to share authentic, heritage-inspired foods with a wide audience, and this partnership will allow the brand to reach even more consumers while maintaining its commitment to inclusivity and cultural celebration.

The acquisition also aligns with PepsiCo’s broader strategy, “PepsiCo Positive” (pep+), which focuses on sustainability, health, and inclusion in its product offerings. Siete Foods, with its focus on clean, culturally authentic ingredients, is a natural fit for PepsiCo’s evolving product lineup.

Expert opinions suggest that this acquisition could set the stage for more major brands looking to incorporate authentic, culturally diverse foods into their portfolios. Industry analysts believe that PepsiCo’s move could inspire other food giants to invest in brands that champion inclusivity and wellness, reflecting changing consumer preferences toward better-for-you products.

  Austin, Centerview Partners LLC, Citi, Garza Food Ventures, Gibson Dunn & Crutcher LLP, Lazard, Miguel Garza, Pepsico, Ramon Laguarta, Siete Foods, Weil Gotshal & Manges LLP