PepsiCo is in advance talks to acquire tortilla chip-maker Siete Foods for more than $1 billion, the Wall Street Journal reported on Monday.
The publication cited people familiar with the matter when reporting on the Texas-based Siete Food, owned by the Garza Family and operated by all seven of its members.
Siete Foods could announce a deal soon unless talks fall apart, the report said.
The sale process for the business has been competitive, with the company drawing takeover interest from private-equity firms and other food companies, some of the people familiar with the matter told the Wall Street Journal.
PepsiCo declined to comment.
The deal comes in the midst of robust dealmaking in the US packaged food sectors as companies seek to scale their business at a time when inflation-weary customers cut back spending and shift their focus to cheaper private-label products.
Branded products have been facing an uphill battle as they rose prices to punt high input costs to consumers in the face of high inflation.
While many brands have been able to maintain some profitability, most are struggling with volume sales and consumers balk at the high price of branded products.
Demand for PepsiCo’s snacks and soda has taken a hit from these price hikes and competition from private-label brands in its largest market, the US.
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