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

PepsiCo. (PEP) which owns top food brands such as Lays, Quaker, Gatorade, etc., has its eyes locked on adding every other popular brand to its portfolio, but some consumers are petrified of the final results of the acquisition.

The food giant announced in a press unlock on Oct. 1 that it truly is ready to buy for Siete Foods, a Mexican-American brand that is popular for having clean ingredients in its products, which encompass cookies, snacks, tortillas, spices, etc.

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PepsiCo is putting down a whopping $1.2 billion to acquire the emblem, and the deal is expected to be completed at some point soon of the first 1/2 of of 2025.

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"PepsiCo believes in the spirit and authenticity of the Siete brand, and we're excited to hold on the legacy created by the Garza family,” said PepsiCo CEO Ramon Laguarta in the click unlock.

Shortly after the announcement, many consumers took to social media to express outrage over the choice, fearing that PepsiCo will alter the ingredients of Seite’s food products by adding in more cost-effective, undesirable chemicals to be able to pose a threat to human health. Some have even threatened to prevent buying Siete products over these concerns.

@PepsiCo please DO NOT PURCHASE Siete!! You big corporations do now now not care about human health simplest your bottom line. Leave these healthy companies alone. You are going to prefer to be going to ruin the foremost thing and put toxic, harmful chemicals in great products. I’m so sad.— Claiborneclub (@claiborneclub) October 2, 2024

It’s simplest a matter of time ahead of @PepsiCo ruins this brand. Siete offered safe choices for so many other folks who're chronically ill. We in point of fact can’t have anything nice. https://t.co/AeaNtXSkNc— Cat|אריאלה (@CatKaminsky) October three, 2024

So word is that @SieteFoods sold out to @PepsiCo for $1.2 billion. I in point of fact liked Siete foods but won't ever eat every other one in every of their products resulting from PepsiCo's purchase. They are what's wrong with the food industry here in the states. Any other ruined product.— DC (@dcpratt288333) October 2, 2024

In an emailed statement to TheStreet responding to the new backlash, a spokesperson for PepsiCo did now now not specify whether or now now not the corporate plans to change the ingredients in Siete's products, but claimed that PepsiCo looks forward to working with Siete's owners on the acquisition.

“We appreciate the fervour of Siete’s loyal consumers," said the PepsiCo spokeperson. "We share their love of Siete products just as they are, and are having a look ahead to working with the Garza family to bring their inclusive, better-for-you products to more people.”

Why consumers are protective over Siete's ingredients

Siete used to be founded in 2014 by Veronica Garza, a University of Texas graduate. She created the corporate after she used to be diagnosed with “more than one debilitating autoimmune conditions,” in step with the Siete’s online page. Seite’s ingredients were inspired by the low-inflammation diet she had to adopt resulting from those conditions.

Recently, consumers have been paying closer attention to the ingredients of their food products and seeking to avoid some they deem unhealthy. This shift in consumer behavior aligns with the present trend of people turning into more health-responsive to the food and drink they consume, which is a trend that sparked after the Covid19 pandemic.

Seed oils such as canola, vegetable, sunflower, grapeseed, etc., are among the many many a few ingredients which have recently drawn scrutiny from consumers for being overly processed and contributing to inflammation in the body.

@bobbyparrish

❌Bad Oils❌ #eatthisnotthat #healthyliving #bobbyapproved #seedoils ♬ original sound - Bobby Parrish

Synthetic dyes such as Red forty, Yellow 6, etc., which are commonly found in processed foods, have also come under fire for being linked to health issues such as cancer and hyperactivity in kids, in spite of being approved by the U.S. Food and Drug Administration.

Amid this criticism, brands such as Siete have been uplifted and promoted by consumers for containing clean ingredients. In place of using seed oils to make its food, Siete uses avocado oil, which has anti-inflammatory effects.

@healthwithhunter

@Siete Foods is a fine alternative to Doritos! #health ♬ original sound - HEALTH WITH HUNTER

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

Seed oils and synthetic dyes have been found in the ingredients list of more than one PepsiCo food products, so it truly is not often very a surprise that some consumers are serious concerning the corporate acquiring Siete Foods.

PepsiCo has recently been tormented by dwindling sales

The move from PepsiCo comes after it reported in its 2d-quarter earnings report for 2024 that it faced weak U.S. sales for its Frito-Lay and Quaker Foods brands. Volume for Frito-Lay declined by four% at some point soon of the quarter, while Quaker Foods decreased by 17%.

In the tip of an earnings call on July 11, which discussed the earnings report, PepsiCo CEO Ramon Laguarta claimed that the decrease in sales comes at some point soon of a time when consumers are restricting their spending on food resulting from inflation.

“The shopper is so much more price conscious, (and) is attempting to in finding more value,” said Laguarta at some point soon of the call.

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