In a bid to become China’s leading consumer-centric food and beverage company, PepsiCo has acquired one of the nation’s largest online snacks companies for $705 million.
Based in Hangzhou, Be & Cheery has a diverse snacking portfolio balancing nutrition and convenience and covers nuts, dried fruits, meat snacks, baked goods and confectionery. It predominantly sells online through the major e-commerce platforms in China.
Parent company Haoxiangni decided to offload Be & Cheery to focus on local speciality agricultural products and supporting rural revitalising going forward.
Although PepsiCo has been operating in China for more than forty years, the acquisition will allow it to grow its presence in online snacks.
“Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset light model, and focus on e-commerce,” said 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.”
Haoqun Qiu, Chairman of Be & Cheery, added: “PepsiCo and Be & Cheery are jointly confident in the prospects for China’s snacks industry and share a commitment to invest in consumer-led and digitalized capabilities.”