PepsiCo said in a statement released Sunday that it would purchase Hangzhou Haomusi Food Co. Ltd., also known as Be & Cherry, for $705 million from Haoxiangni.
Ram Krishnan, CEO of PepsiCo Greater China, said in a statement that Be & Cherry is “highly complementary” to Pepsi’s existing Chinese business due to its broad product portfolio, asset-light model, and a focus on e-commerce.
Haoqun Qiu, Chairman of Be & Cherry, said, “We are thrilled to be joining the PepsiCo family.” He added, “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.”
Why It Matters
PepsiCo has operated in China for nearly 40 years, and this transaction will allow them to become China’s “leading consumer-centric food and beverage company.”
The sale of Be & Cherry would allow Haoxiangni to focus on rural revitalization, agricultural products, and its jujube business.
Hangzhou based Be & Cherry is considered to be one of the largest e-commerce snack companies in China and has revenues of nearly 5 billion yuan or $711.7 million as of 2019.
PepsiCo shares traded 0.034% higher at $145.90 in the after-hours session on Friday. The shares had closed the regular session 0.48% higher at $145.85.
Haoxiangni shares traded 0.71% at $1.60 higher at press time in Shenzhen.
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