PepsiCo has acquired the South African Pioneer Foods Group Ltd. for approximately $1.7 billion, with the goal of expanding its presence across the Sub-Saharan African markets.
Pioneer Foods is a dominant presence in the food and beverage product sectors in the Sub-Saharan Africa nations, with brands including Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko and White Star.
With this acquisition, the Purchase-based PepsiCo stated it will enjoy a wider manufacturing and distribution presence across the African continent through the launch of its new PepsiCo SSA operating sector, which will be led by Eugene Willemsen, who most recently served as the company’s executive vice president of global categories and franchise management.
PepsiCo added that the acquisition will enable the expansion of its Sustainable Farming Program in Africa as well as Pioneer Foods’ Broad-Based Black Economic Empowerment program.
“As part of PepsiCo, we will have greater scale to expand our leading brands, greater capital to invest in local agriculture and people, greater access to leading global capabilities and a partner committed to taking our company to even greater heights,” said Tertius Carstens, CEO of Pioneer Foods.