PepsiCo is recognized by many Americans as the king of snacks owning over 22 brands that generate more than $1 billion each in annual retail sales, but that doesn’t mean the company isn’t looking to expand further.
The food giant recently announced it has entered into a definitive agreement to acquire the better-for-you snacking company BFY Brands.
BFY Brands is mostly known for its line of PopCorners snacks, which is a chips and crisps brand made from veggies and non-GMO corn. The company uses a patented air-poping technique to create a light and crunchy texture that’s a healthier alternative to deep-fried snacks.
Upon closing, BYF Brand will report to PepsiCo’s chip subsidiary Frito-Lay North America. Financial terms of the transaction have yet to be disclosed.
Frito-Lay controls over a fourth of the potato chip market owning popular snack lines like Lays, Dorritos and Ruffles but the health-conscious food trend has fueled the company to invest in chip brands with more wholesome ingredients.
Last year PepsiCo acquired Bare Snacks which is a sweet and savory baked chip line made from fruit and vegetables. They also bought out Pipers, a UK company that makes low-calorie kettle-cooked chips and pea-based crisps.
Steven Willian, chief executive officer of PepsiCo Foods North America, hopes the addition of BYF will add to PepsiCo’s goal of being a more prominent player in the better-for-you snack market.
“BFY Brands offers distinctive products that deliver the great taste and ingredients consumers are looking for,” said Williams. “Their production capabilities will support the growth of our existing, more-nutritious snack brands.”
According to Forbes almost 386 billion snacks were consumed by Americans in 2018 leading to a now $89 billion dollar industry.
As the snacking segment continues to grow, health will be a dominant driver in this market and food brands that incorporate more naturally-sourced ingredients could see increased sales over competitors.