PepsiCo has entered into a distribution agreement with Select Harvests to bring the Australian company’s Lucky brand of nuts and seeds in China.
The products will be produced and supplied by select Harvests, while PepsiCo will be responsible for marketing, sales and distribution.
Both companies said they will make “significant commitments” to an advertising and marketing programme over the first 18 months of the agreement, which has an initial term of five years.
PepsiCo president of Greater China Ram Krishnan said: “As a global corporate citizen fully embedded into the fabric of Chinese society, PepsiCo is committed to being truly ‘in China, for China, with China’.
“With the continued development of the Chinese economy, consumers have ever-more demand on healthy and nutritious products. Entering into China’s nuts and seeds market is a crucial piece of our growth strategy and we are delighted to be collaborating with Select Harvests to deliver this to China’s consumers.
Select Harvests general manager consumer Mark Eva added: “Entering the China market in partnership with PepsiCo is extremely exciting for Select Harvests and the Lucky brand. Lucky has been a favourite brand of nuts and seeds in Australia for over 60 years.
“This allows Select Harvests to participate in the increased consumption of plant-based foods, nuts and seeds in China, which is accelerating as consumers become more affluent and knowledgeable about the nutritional benefits of nuts and seeds.
“Our partnership with PepsiCo – who are globally recognised for their marketing, sales and distribution capability – creates a remarkable opportunity for Lucky.”
PepsiCo has been increasingly reliant on salty snack sales to drive revenue growth as consumers move away from sugary soft drinks.
In its second-quarter results published earlier this month, the firm’s Frito-Lay North America business – which includes brands such as Cheetos, Doritos and Tostitos – posted a net sales rise of 4%.
Earlier this year PepsiCo bought US maker of baked fruit and vegetable crisps Bare Snacks. It also plans to bring its Australian potato chip brand Red Rock Deli to the US for the first time.