PURCHASE, New York – PepsiCo announced today it has completed the acquisition of Stacy’s Pita Chip Company, the top selling pita chip maker with sales approaching $60 million in 2005. Stacy’s is an all-natural snack company with strong growth potential that will now operate as a separate unit reporting to Frito-Lay North America chairman and chief executive officer Irene Rosenfeld.
The Stacy’s acquisition supports Frito-Lay’s desire to participate more broadly in the $90 billion macrosnack category and complements the company’s growing portfolio of healthier snack options. Stacy’s co-founders, Stacy Madison and Mark Andrus, will continue to provide input to the business team in the areas of marketing, sales and new product development. The company will remain headquartered in Randolph, MA, with more than 100 employees.
“Stacy’s is a terrific complement to Frito-Lay’s portfolio and supports our strategy to meet consumers’ needs for healthier, premium/gourmet products,” said Rosenfeld. “We intend to build on Stacy’s impressive momentum by providing the resources and the infrastructure necessary to accelerate their growth.”
“It’s a pleasure to know that in just nine years Stacy’s has helped establish a new category of premium, healthy snacks,” said Madison. “Now with Stacy’s being part of the Frito-Lay family, we’ll be able to solidify and more rapidly expand our leadership position in the market.”
“This is a big win for Stacy’s, our people and for consumers,” added Andrus. “After almost a decade of carving out this snack category, we’re finally in position to put Stacy’s pita chips into the mouths of more people.”
Terms of the transaction, which closed today, were not disclosed.
Stacy’s pita chips are distributed nationwide and come in five flavors -- Simply Naked, Texarkana Hot, Pesto & Sundried Tomato, Cinnamon Sugar and Parmesan, Garlic & Herb. They qualify for PepsiCo’s Smart Spot symbol, which is found on select products which meet certain nutrition criteria and makes shopping easier for families looking for healthier snack and beverage choices. Stacy’s pita chips are baked, all natural and have no cholesterol. Like Frito-Lay, Stacy’s offers snack chips without trans fats.
In addition to pita chips, Stacy’s also offers three flavors of soy thin crisps (White Cheddar, Sweet BBQ and Buttery Caramel).
About Stacy’s Pita Chip Company
Stacy’s Pita Chip Company was founded in 1997 by a social worker and a psychologist with a passion for good food and a commitment to healthy living. With a desire for a career in the food industry, but without the capital to open a restaurant, Stacy Madison and Mark Andrus began serving healthy pita bread roll-up sandwiches in Boston’s Financial District. As an incentive, the bread was baked into pita chips and served to customers waiting in line. They became an instant hit and the lines grew longer each day. It was the customers who encouraged them to get the pita chips into stores, thus Stacy's Pita Chip Company was born. Thanks to loyal customers, Stacy’s chips are now available nationwide.
About Frito-Lay North America
Frito-Lay, based in Plano, TX, is the $10 billion convenient food division of PepsiCo, which is based in Purchase, NY.
PepsiCo is one of the world's largest food and beverage companies with annual revenues of $29 billion. Its principal businesses include Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. Its portfolio includes 16 brands that generate $1 billion or more in annual retail sales.
This release contains statements concerning PepsiCo’s expectations for future performance. Any such forward-looking statements are inherently speculative and are based on currently available information, operating plans and projections about future events and trends. As such, they are subject to numerous risks and uncertainties. These risks include the ability to achieve business plans, successfully executing and managing the proposed acquisition and the receipt of regulatory approvals. Actual results and performance may be significantly different from expectations. Please see our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, for a discussion of additional risks that may affect our performance.