PepsiCo’s plan to buy a popular brand draws threats from consumers

PepsiCo. (PEP) which owns top food brands like Lays, Quaker, Gatorade, etc., has its eyes set on adding another popular brand to its portfolio, but some consumers fear the outcome of the acquisition.

The food giant announced in a press release on October 1 that it will buy Siete Foods, a Mexican-American brand that is popular for having clean ingredients in its products, which include cookies, snacks, tortillas, condiments, etc.

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PepsiCo is putting in a whopping $1.2 billion to acquire the brand and the deal is expected to be completed in the first half of 2025.

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“PepsiCo believes in the spirit and authenticity of the Siete brand, and we are excited to carry on the legacy created by the Garza family,” PepsiCo CEO Ramon Laguarta said in the press release.

Shortly after the announcement, many consumers took to social media to express their outrage at the decision, fearing that PepsiCo will alter the ingredients in Seita’s food products by adding cheaper, unwanted chemicals that may be a threat to human health. Some have even threatened to stop buying Siete products because of these concerns.

@PepsiCo please DO NOT BUY Siete!! You big corporations don’t care about human health, only your bottom line. Leave these healthy companies alone. You will ruin a great thing and put toxic and harmful chemicals into great products. I am so sad.

— Claiborneclub (@claiborneclub) October 2, 2024

It is only a matter of time before @PepsiCo destroy this brand. Siete has provided safe alternatives for so many people suffering from chronic diseases. We really can’t have anything nice. https://t.co/AeaNtXSkNc

— Cat|ариала (@CatKaminsky) October 3, 2024

So the point is this @SieteFoods sold at @PepsiCo for $1.2 billion. I really liked Siete food, but I will never eat any other product because of the PepsiCo acquisition. They are what is wrong with the food industry here in the states. Another broken product.

— DC (@dcpratt288333) October 2, 2024

In an emailed statement to TheStreet in response to the recent backlash, a PepsiCo spokesperson did not specify whether or not the company plans to change the ingredients in Siete’s products, but said PepsiCo looks forward to working with Siete owners upon purchase.

“We appreciate the passion of Siete’s loyal consumers,” said a PepsiCo spokesperson. “We share their love of Siete products as they are and look forward to working with the Garza family to bring their inclusive, better products to you. more people.”

Why consumers are protective of Siete ingredients

Siete was founded in 2014 by University of Texas graduate Veronica Garza. She created the company after being diagnosed with “multiple debilitating autoimmune conditions,” according to the Siete website. Seite’s ingredients were inspired by the low-inflammation diet she had to adopt as a result of these conditions.

Recently, consumers have paid more attention to the ingredients in their food products and tried to avoid some they consider unhealthy. This change in consumer behavior aligns with the current trend of people becoming more health conscious about the food and drinks they consume, which is a trend that has been triggered since the Covid pandemic.

Oils from seeds such as canola, vegetable, sunflower, grape seed, etc., are some of the many ingredients that have recently caught the attention of consumers for being overly processed and contributing to inflammation in the body.

@bobbyparrish

❌Bad oils❌ #eatthisnotthat #healthyliving #bobbyapproved #seedouls

♬ original sound – Bobby Parrish

Synthetic dyes such as Red 40, Yellow 6, etc., which are commonly found in processed foods, have also been criticized for being linked to health problems such as cancer and hyperactivity in children, despite being approved by the US Food and Drug Administration. .

Amidst this criticism, brands like Siete have been picked up and promoted by consumers for containing clean ingredients. Instead of using seed oils to make her food, Siete uses avocado oil, which has anti-inflammatory effects.

@healthwithhunter

@Siete Foods is an amazing alternative to Doritos! #health

♬ original sound – HEALTH WITH HUNTER

All Siete products are also grain-free, non-GMO, gluten-free, dairy-free, soy-free, paleo and vegan, which has attracted many health-conscious consumers. Although the company’s products are not certified organic, many of them also contain organic ingredients.

Seed oils and synthetic dyes have been found in the ingredient list of several PepsiCo food products, so it’s no surprise that some consumers are concerned about the company’s acquisition of Siete Foods.

PepsiCo has recently suffered from declining sales

The move from PepsiCo comes after it reported in its second-quarter 2024 earnings report that it faced weak US sales for its Frito-Lay and Quaker Foods brands. Volume for Frito-Lay fell 4% during the quarter, while Quaker Foods fell 17%.

During a July 11 earnings call that discussed the earnings report, PepsiCo CEO Ramon Laguarta argued that the sales decline comes at a time when consumers are cutting back on food spending due to inflation.

“The consumer is much more price conscious (and) looking for more value,” Laguarta said during the call.

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