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Be & Cheery acquisition to heat up competition in snack market

By WANG ZHUOQIONG | chinadaily.com.cn | Updated: 2020-06-04 19:43
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PepsiCo Inc's recent acquisition of Hangzhou Haomusi Food Co Ltd, also known as Be & Cheery and one of the largest convenient foods companies in China, is expected to further escalate the fierce competition in the country's fast-growing snack market.

PepsiCo announced on Feb 23 it has entered into an agreement to acquire Be & Cheery for $705 million.?

The transaction, in line with PepsiCo's goal to become China's leading consumer-centric food and beverage company, is expected to benefit the growth and development of China's convenient foods market, PepsiCo said.

Founded in 2003 and based in Hangzhou, Be & Cheery is a convenient foods company with a broad product portfolio including nuts, dried fruits, dried meat, pastries and puffed food with over 1,000 kinds of merchandise.

Led by data-driven product innovation and a flexible supply chain, Be & Cheery has expanded through its omni-channel presence interacting with over 70 million active consumers.

Ram Krishnan, CEO of PepsiCo's APAC sector, said: "Partnering with Be & Cheery is a major milestone in PepsiCo's 'In China, For China, With China' commitment. With this acquisition, PepsiCo has invested over 53 billion yuan ($740 million) over the last 10 years in China, one of our most important markets globally."

Be & Cheery will operate as an independent business unit as part of PepsiCo.

PepsiCo has been in China for nearly four decades, with seven food plants, 18 potato farms and the largest R&D center outside North America.

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