PepsiCo to acquire Canadian seed firm Spitz to expand frito-Lay range

30 October 2008

Continuing with its expansion through acquisitions during 2008 even as it downsizes to beat the economic slowdown,  PepsiCo Inc said it is acquiring Canadian sunflower and pumpkin seeds maker Spitz International Co for an undisclosed sum or other details of transaction. The agreement becomes effective upon closing.

The acquisition of the Canadian firm, founded in 1982 as Alberta Sunflower Seeds by Dutch farmer couple Tom and Emmy Droog, will enable Pepsi to expand the market share its 411-billion snack foods division Frito-Lay in Cananda, and after the closing of the transaction, Spitz will report from its Bow Island headquarters in Southern Alberta to Frito-Lay's North America unit.

The acquisition will strengthen Frito-Lay's market share in the nuts and seeds category. Spitz, which has strong growth potential across North America, complements Frito-Lay's growing portfolio of health-snack options, such as True North nut snacks, introduced this year.

Spitz seeds are distributed throughout Canada and are readily available in the US markets. its sunflower seeds are available in six flavors (salted, seasoned, dill pickle, spicy, chili lime and smokey barbeque). Its pumpkin seeds are available in three flavors (salted, seasoned and dill pickle). All of Spitz's seeds are grown, harvested and roasted through its own patented process.

"We are looking forward to having Spitz's leading seed brands in the Frito-Lay family," said Al Carey, Frito-Lay North America president and CEO. "Spitz enables Frito Lay Canada to grow our seed business in Canada and help us expand in the US, while supporting PepsiCo's broader health and wellness strategy. Spitz has a very strong brand in Canada, and we plan to create new growth opportunities for the brand across North America."

"Frito Lay Canada is one of Canada's largest food companies and we have a proud history of growing small Canadian companies to expand the distribution of their products," said Marc Guay, president, Frito Lay Canada. "We're excited about the opportunities with Spitz and we'd like to thank Tom and Emmy Droog for everything they've done to build a terrific business."