PepsiCo plans to buy Chinese snack Be & Cheery
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PepsiCo is poised to purchase Chinese online snack vendor Be & Cheery owned by Haoxiangni Health Food Co.
PepsiCo had proposed the Be & Cheery acquisition before the coronavirus outbreak began in China.
Valued at US$705 million, the acquisition will help PepsiCo strengthen its position in Mainland China as the company suffers slowing business growth globally.
“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,” said Ram Krishnan, CEO of PepsiCo Greater China.
“We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”
The acquisition still needs approval from Haoxiangni’s shareholders and other customary conditions, according to the company.
Founded in 2003, Be & Cheery is one of the China’s largest online snack companies. Its products include nuts, dried fruits, meat snacks, baked goods and confectionery.
Questions & Answers
Q.What is the primary motivation for PepsiCo to acquire Be & Cheery?
What is the primary motivation for PepsiCo to acquire Be & Cheery?
The acquisition aims to strengthen PepsiCo's position in Mainland China, particularly as the company faces slowing business growth across its global operations. It also adds direct-to-consumer capabilities and an established local brand to PepsiCo's portfolio.
Q.Which specific benefits does PepsiCo expect to gain from Be & Cheery's business model?
Which specific benefits does PepsiCo expect to gain from Be & Cheery's business model?
PepsiCo expects to gain direct-to-consumer capability, allowing it to capitalise on e-commerce growth. It also anticipates using Be & Cheery’s innovation and consumer insights to drive development in other important PepsiCo markets.
Q.What types of products does Be & Cheery currently offer to consumers?
What types of products does Be & Cheery currently offer to consumers?
Be & Cheery sells a diverse range of snack products. Its offerings include nuts, various dried fruits, different meat snacks, a selection of baked goods, and various confectionery items for its customers.
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