Snacks & Candy

PepsiCo Completes Acquisition of Stacy's Pita Chip Co.

Will operate as separate unit of Frito-Lay

PURCHASE, N.Y. -- PepsiCo said it has completed the acquisition of Stacy's Pita Chip Co. Stacy's is an all-natural snack company with sales approaching $60 million in 2005 and with strong growth potential that will now operate as a separate unit reporting to Frito-Lay North America chairman and CEO Irene Rosenfeld.

Terms of the transaction were not disclosed.

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 [image-nocss] healthier snack options.

Stacy's cofounders, 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, Mass., with more than 100 employees.

Stacy's pita chips are distributed nationwide and come in five flavorsSimply 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).

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.

Frito-Lay, based in Plano, Texas, is the $10 billion convenient food division of PepsiCo, Purchase, N.Y.

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