PepsiCo Acquires Siete Foods

Case Code: BSTR698
Case Length: 6 Pages
Period: 2014-2024
Pub Date: 2025
Teaching Note: Available

Price: Rs.200
Organization : PepsiCo, Inc.
Industry : Food & Beverage
Countries : United States
Themes: Strategic Alliances, Diversification Strategy

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Siete Background

Siete Foods was founded in 2014 in Austin, Texas, US, by Veronica Garza (Veronica) and Miguel. Veronica was diagnosed with an autoimmune disease in her early teens and was advised to avoid legumes, grains, and dairy foods. All the members in her family helped her in preparing foods that were free from ingredients that caused or worsened the symptoms of the autoimmune disease. Veronica prepared tortillas from almond flour and started selling it in her neighborhood in Laredo, Texas..

The Snack Food Industry In The US

In the US, snacks were consumed by more than 90% of the people each day. According to industry observers, Americans were so obsessed with the snacking habit that some of them sacrificed regular meals to eat snacks the entire day..

Why siete foods?

PepsiCo’s primary reason for acquiring Siete Foods was to diversify its product portfolio in the healthy snack food category. Siete Food’s products such as tortillas prepared with almond flour and dairy free queso dips were a good fit with PepsiCo’s ‘better-for -you’ food products range. Analysts opined that PepsiCo was capitalizing on the latest trends of the customers for healthier food options..

Challenges Ahead

Experts cautioned that PepsiCo had to be vigilant against potential challenges. One of the challenges was the integration of Siete Foods into PepsiCo’s large scale production process. Such a large-scale production process could affect the quality of Siete Food’s products due to the scaling up of the..

Exhibits

Exhibit I: Acquisitions by PepsiCo in Nutritious Foods Segment
Exhibit II:Revenue of PepsiCo
Exhibit III: Revenue of PepsiCo by Segment (in $ million)
Exhibit IV: Major Companies in the Snack Food Segment in the US

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