PepsiCo acquires protein and wellness products company | Progresiv
PepsiCo has acquired the CytoSport business from Hormel Foods, as the company expands its portfolio of healthier food and drinks. 
Initially bought by Hormel in 2014 for 450 million dollars, CytoSport produces a range of protein and wellness products – including bars, shakes and powders – under the Muscle Milk and Evolve brands.
PepsiCo will look to boost the performance of the unit after it struggled last year. In an earnings call last November, Hormel CEO Jim Snee said: “CytoSport had a disappointing year with declines in powder and single-serve ready-to-drink product lines.”
Terms of the deal have not been disclosed, but it is expected to close in the next two months.
Snee said added: “PepsiCo has deep expertise and experience in the sports nutrition category and has been a long-standing distribution partner for CytoSport and the Muscle Milk brand, which puts them in a strong position to grow this dynamic business.
“We look forward to working with PepsiCo to ensure a smooth transition for our team members, suppliers, customers and consumers.”
The deal marks the first major acquisition PepsiCo has carried out since Ramon Laguarta took over as PepsiCo CEO last October.
In its full-year results published last week, PepsiCo reported a 2% increase in net revenue to $64.66 billion, with growth in its Frito-Lay North America and ESSA (Europe and sub-Saharan Africa) segments offsetting smaller declines in Quaker Foods North America and AMENA (Asia, Middle East and North Africa). (www.foodbev.com)
