PepsiCo purchases Chinese tidbit brand Be and Cheery for $705 million

PepsiCo Inc (PEP.O) has consented to purchase Chinese tidbit brand Be and Cheery from neighborhood jujube producer Haoxiangni Health Food Co Ltd (002582.SZ) for $705 million, the organizations said.

The U.S. worldwide nourishment and refreshment producer said the securing of Be and Cheery, which offers snacks from nuts to dried organic products primarily on Chinese internet business stages, was a significant advance in its objective to turn into China’s driving customer centered nourishment and drink organization.

“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 an announcement on Sunday.

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

Haoxiangni, which is situated in the eastern city of Hangzhou, said in a different documenting that it had chosen to sell as it needed to concentrate on the jujube business.

Established in 2003, Be and Cheery is one of the biggest online tidbit organizations in China and revealed incomes of around 5 billion yuan ($711.7 million) in 2019, the organizations said.

The exchange is dependent upon a Haoxiangni investor vote, certain administrative endorsements and other standard conditions, they said.