PepsiCo has achieved an settlement to purchase the Chinese snack retailer Be & Cheery from Haoxiangni Well being Foods for $705 million, the businesses said.

Be & Cheery, launched in 2003, is a single of the premier on the internet snack businesses in China providing nuts, dried fruits, and other snacks, primarily on Chinese e-commerce platforms. It recorded $24.3 million in internet income past yr, up 32% from 2018.

“Be & Cheery adds direct-to-client ability, positioning us to capitalize on ongoing expansion in e-commerce, and a community brand name that is equipped to stretch throughout a broad portfolio of products and solutions, by way of both on the internet and offline channels,” Ram Krishnan, main executive officer of PepsiCo Better China, said in a statement. “We also expect to leverage Be & Cheery’s innovation and client insights capabilities to travel innovation in other crucial PepsiCo expansion markets.”

The brand’s current proprietor, Haoxiangni Well being Foods, acquired Be & Cheery in August 2016 for $136.five million. In a statement, the corporation said it wanted to concentration on the jujube business enterprise.

PepsiCo’s snack foodstuff division has been rising at a faster fee than its beverage division. The deal could signal the opportunity for ongoing expansion in that marketplace in establishing countries.

In July, PepsiCo declared it was buying a 26% stake in a single of China’s premier normal foodstuff producers, All-natural Foods Worldwide, for $131 million, citing its, “determination in accelerating its growth in China.”

Through an earnings get in touch with earlier this thirty day period, PepsiCo Chairman and CEO Ramon Laguarta said the company’s intercontinental business enterprise represented a significant opportunity. “And China, of course, is a enormous marketplace, wherever we have a superior business enterprise. It is rising incredibly properly … But the opportunity is a great deal, a great deal greater,” he said.

Pepsi’s investment in China will come as fallout from the coronavirus carries on to effects the world-wide economy. Main indices fell sharply Monday on considerations the epidemic would hamper expansion.

Zhang Peng/LightRocket through Getty Pictures

China, e-commerce, world-wide business enterprise, PepsiCo