With Acquisition, PepsiCo aims to Strengthen E-Commerce Strategy
E-commerce accounted for more than half — 59.6 percent — of all gains in the retail market last year and will continue to grow in 2020, according to Digital Commerce 360, a media and research organization.
Recognizing the importance of a strong e-commerce presence, PepsiCo recently acquired Hangzhou Haomusi Food — also known as Be & Cheery — for $705 million to take a page or two out of its e-commerce best practices playbook. The Hangzhou, China-based online retailer of dried fruits, beef jerky and snacks is known for data-led innovation and flexible manufacturing and sourcing, which allows it to quickly adjust its product portfolio to respond to changing consumer trends, according to PepsiCo.
“As we look to accelerate growth in key markets around the world and further grow ‘in China, for China, with China,’ Be & Cheery adds direct-to-consumer capability, positioning us to capitalize on continued growth in e-commerce, and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels,” CEO of PepsiCo Greater China Ram Krishnan said in a press release. “We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”