PepsiCo, Inc., announced on Tuesday a $1.2 billion acquisition deal with Austin-based Garza Food Ventures LLC, also known as Siete Foods.
The acquisition is expected to significantly enhance PepsiCo’s portfolio by integrating Siete’s authentic Mexican-American brand while expanding its presence in the better-for-you food market. This strategic move aligns with PepsiCo’s efforts to diversify its offerings with products that meet the growing demand for healthier, more inclusive food options.
Founded in 2014, Siete Foods is renowned for its heritage-inspired tortillas, salsas, seasonings, cookies, and snacks, which have become a staple in U.S. grocery stores, club outlets, and organic retailers. With its roots in Austin, Siete Foods started as a family business focused on creating delicious food that pays homage to Mexican-American culinary traditions.
Siete makes grain-free chips, salsas, grain-free tortillas, cookies, seasonings, and more.
According to Pitchbook, Siete, founded by Miguel Garza, Veronica Garza, and Aida Garza, has raised $91 million to date. It has also gone through the SKU accelerator as part of its portfolio of consumer products goods companies. The company has 132 employees.
“The Garza family has built a very special brand,” PepsiCo Chairman and CEO Ramon Laguarta said in a news release. “Their passion for making and sharing food shines through in every Siete product, and that’s a passion we share at PepsiCo.” He emphasized the importance of authenticity in the Siete brand and PepsiCo’s commitment to expanding its multicultural portfolio with products that resonate with diverse consumers.
Miguel Garza, CEO and Co-Founder of Siete Foods, echoed this sentiment, noting that this partnership with PepsiCo marks a new chapter for the company. “We hope this next chapter for Siete serves as inspiration for other Latino businesses, showing that it’s possible to build a thriving brand that honors our heritage and celebrates our culture,” Garza said.
The acquisition, expected to close in the first half of 2025, pending regulatory approval, underscores PepsiCo’s ongoing commitment to sustainability and inclusivity. The company’s broader vision, guided by the PepsiCo Positive (pep+) strategy, focuses on sustainability and human capital, aiming to inspire positive change while promoting growth within planetary boundaries.
PepsiCo has enlisted Centerview Partners LLC and Citi as financial advisors for the transaction, while Gibson Dunn & Crutcher LLP provides legal counsel. Siete is being advised by Lazard on the financial side, with Weil, Gotshal & Manges LLP, and Armbrust & Brown, PLLC acting as legal advisors.
This acquisition positions PepsiCo to further diversify its offerings and cater to an ever-evolving consumer base seeking authentic and health-conscious food options. It will also help preserve the cultural legacy behind Siete’s unique products.