Be & Cheery to Join PepsiCo’s Portfolio
PepsiCo is making a strategic move to expand its footprint in the global snack and beverage industry by finalizing the acquisition of Be & Cheery, one of China’s leading snack brands. The deal, valued at $705 million, is set to empower PepsiCo in its quest to emerge as the top consumer-focused food and beverage enterprise in China.
Headquartered in Hangzhou, China, Be & Cheery specializes in a variety of products such as nuts, dried fruits, and jerkies, primarily distributed through online channels. With a reported profit of 171 million yuan (around $24.3 million) last year, marking a 38% increase from 2018, the brand is presently under the ownership of Haoxiangni Health Food, who acquired it for 960 million yuan (about $136.5 million) in 2016.
The Chinese snack market has experienced substantial growth in recent years, witnessing a remarkable over 400% surge in value from 2006 to 2016, according to estimates by the Ministry of Commerce. Projections hint at a market value of approximately 3 trillion yuan ($427 billion) in 2020. PepsiCo’s purchase of Be & Cheery aligns well with current market trends, especially as the Chinese government promotes online shopping as a measure to curb the spread of COVID-19, making Be & Cheery’s online sales model particularly appealing in the current scenario.
