PepsiCo is taking a stake in one of China’s largest natural food producers as it seeks to capitalize on the global health food craze.
The American soda and snack company said Friday that it was buying 26% of Natural Food International for $131 million, becoming the company’s second largest shareholder.
Shares in Natural Food International added 14% in Hong Kong. The company said that PepsiCo had agreed to purchase 566.51 million shares at 1.8 Hong Kong dollars ($0.23) per share.
“The investment indicates PepsiCo’s determination in accelerating its development in China, an important market to us,” PepsiCo said.
China is the world’s largest food and beverage market, and PepsiCo said it hopes to become a leading player there by offering products that appeal specifically to local customers.
PepsiCo has also expanded in Africa recently. On July 19, PepsiCo agreed to buy South Africa’s Pioneer Foods Group for $1.7 billion, hoping to gain a beachhead for expansion in the continent – more in information on this here.