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Pepsico acquires Chinese snack brand Be & Cheery for $705 million

By Retail4Growth Team | February 25, 2020

PepsiCo said the acquisition of Be & Cherry marks an important step in its goal to become China’s leading consumer-centric food and beverage company.

Multinational food and beverage maker Pepsico has announced that it has entered into a definitive agreement to acquire Be & Cheery, one of the largest online snacks companies in China, from Haoxiangni Health Food Co for US $705 million. 

PepsiCo said the acquisition of Be & Cherry marks an important step in its goal to become China’s leading consumer-centric food and beverage company.

“Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset-light model, and focus on e-commerce. 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,” Ram Krishnan, CEO of PepsiCo Greater China, said in a statement.

“We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets,” he added.

“We are pleased to reach the agreement with PepsiCo. PepsiCo is a global leading food and beverage company with deep roots in China, and with its extensive route-to-market and innovation capabilities, PepsiCo can continue to further advance Be & Cheery’s growth. Haoxiangni will focus on developing red dates and local specialty agricultural products in the future. We aim to expand our value chain and supply chain, in the purpose of supporting rural revitalization and achieving win-win outcomes for all,” said Jubin Shi, Chairman of Haoxiangni.

“We are thrilled to be joining the PepsiCo family,” said Haoqun Qiu, Chairman of Be & Cheery. “Be & Cheery was founded to bring more people convenient and nutritious snacks. We believe PepsiCo’s strong branding and route-to-market capabilities, as well as global supply chain network, will help us deliver and expand on that mission. 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. We are excited to join forces with them as we look to expand our reach and grow Be & Cheery to the next level.”

Based in Hangzhou, Be & Cheery has many product offerings across nuts, dried fruits, meat snacks, baked goods and confectionery, and predominantly sells online through the major e-commerce platforms in China. The company’s strong data-led innovation capability and flexible manufacturing and sourcing enables it to quickly adjust its product portfolio to respond to changing consumer trends.

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