American food and beverage firm PepsiCo is moving to purchase the Chinese online snacks company Hangzhou Haomusi Food Co. Ltd., known as Be & Cheery, for $705 million from Haoxiangni Health Food Co. Ltd., the company said Monday.
“Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset light model, and focus on e-commerce,” PepsiCo Greater China Chief Executive Officer Ram Krishnan said in a release. “As we look to accelerate growth in key markets around the world and further growth ‘in China, for China, with China,’ Be & Cheery adds direct-to-consumer capabilities, 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.”
The majority of the Hangzhou-based company’s sales are through e-commerce platforms in China. Be & Cheery offers nuts, dried fruits, meat snacks, baked goods, and confectionery products. PepsiCo said the Chinese firm’s flexible manufacturing and sourcing, as well as its innovation capabilities, allow it to adapt quickly to shifting consumer trends.
“Be & Cheery was founded to bring more people convenient and nutritious snacks. We believe PepsiCo’s strong branding and route-to-market 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,” Jubin Shi, chairman of Haoxiangni, said in the release. “We aim to expand our value chain and supply chain, in the purpose of supporting rural revitalization and achieving win-win outcomes for all.”
The shareholders of Haoxiangni must vote to approve the transaction before it can proceed. PepsiCo must also secure related regulatory approvals and meet other customary conditions to close the sale.