SHANGHAI — PepsiCo, Inc. has reached an agreement to acquire Hangzhou Haomsi Food Co., Ltd. (Be & Cheery) from Haoxiangni Health Food Co. Ltd. for $705 million. Based in Hangzhou, China, Be & Cheery is one of the largest online snack food companies in China, offering nuts, dried fruits, meat snacks, baked foods and confectionery items.
Be & Cheery’s products primarily are sold online through China’s major e-commerce platforms.
“Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset-light model and focus on e-commerce,” said Ram Krishnan, chief executive officer of PepsiCo Greater China. “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. We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”
Haoqun Qiu, chairman of Be & Cheery, said the company was founded on the premise of delivering convenient and nutritious snacks to more people. The agreement with PepsiCo is expected to further that strategy, he said.
“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,” Mr. Qiu said. “We are excited to join forces with them as we look to expand our reach and grow Be & Cheery to the next level.”