Pepsi’s going naked: Health food is trendy these days. Now PepsiCo (NASDAQ:PEP) is buying Bare Foods, a small company that makes baked fruit and veggie snacks.
It’s nothing new that more and more people are seeking out healthier snack options. Snack companies everywhere have been buying up healthy snack providers to try and diversify their food and beverage portfolios to include more healthy options so as not to lose out on those sales. PepsiCo is no exception.
PepsiCo, which owns Pepsi, Gatorade, Mountain Dew, Tropicana, Quaker, Lay’s, Doritos, and Cheetos, among other brands, has previously acquired other healthy snack brands. In the past, the company has developed products like Simply Tostitos organic tortilla chips and Simply Organic Doritos, among others. Its next acquisition is Bare Foods.
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Pepsi’s Going Naked
Bare Foods started as a family-run operation trying to make its organic apples last longer. The solution was to thinly slice them and bake them. They were originally sold at Pike Place Market in Seattle and quickly became a popular choice among customers. Bare Foods has since expanded, offering baked fruit and veggie snacks of a wide variety, including banana chips and beet chips, as well as the original apple chips.
The financials of the deal are not known, but PepsiCo wasn’t going to let go of the opportunity to take up more natural and less processed snacks such as those made by Bare Foods, so the price was probably a decently hefty sum.
Previous acquisitions have gone as high as $4.9 billion (Campbell Soup (NYSE:CPB) buying Snyder’s-Lance), while others have gone for prices in the millions. The Bare Foods deal is likely well within that range.
PepsiCo’s stock is currently selling for $100.11, which puts the stock down $0.07, or 0.07%, from the previous closing price of $100.18.
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Featured image: CookYourLife via Pixabay
