(Photo: Global Times)

PepsiCo, Inc. (PepsiCo) announced on Friday that it will invest approximately $131 million (901 million yuan) to acquire approximately 26 percent of the issued ordinary shares of Natural Food International Holding Limited (Natural Food), which is China's second largest natural health food company with a focus on grain-based premium nutrition powder.

PepsiCo will acquire the stake from minority shareholders and will become the second largest shareholder behind Natural Food's founders who own approximately 42 percent of the company. This investment signals the company's commitment to accelerate growth in this key market.

Natural Food was successfully listed on the main board of the Stock Exchange of Hong Kong Limited in 2018, and generated annual revenue of 1.8 billion yuan last year. Its brand Wugu Mofang ranked first in terms of top-of-mind brand awareness and customer satisfaction among all the natural health food brands in China and  the most frequently consumed brand among all the natural health food products in China. Infused with modern nutrition science and food processing technologies, their diversified product portfolio includes over 100 types of products.

Operating in China for nearly 40 years, PepsiCo offers an expansive portfolio of tasty and nutritious food and beverage products to Chinese consumers. Meanwhile, Natural Food has a unique data-led direct-to-consumer business model and Eastern-based portfolio, and the investment in Natural Food will advance PepsiCo's journey to become one of China's leading consumer-centric food and beverage companies.

"Natural Food is an outstanding business with a strong growth and profitability track record, and our investment marks an important step in our commitment to grow 'in China, for China,' said Ram Krishnan, CEO of PepsiCo Greater China. "We have significant regard for the company's founders and its management team for what they have achieved. We are excited to work together with them to grow this company even further and create value as they make, move and sell products."

"We really appreciate the interest and high regard that PepsiCo has shown for Natural Food, and we are grateful for the significant effort that has been devoted by both parties in facilitating this partnership." said Gui Changqing, Chairwoman of Natural Food International Holding Limited. "Through our discussions, we have truly been impressed with PepsiCo's outstanding achievements and leading position in the global food and beverage market, and we are sincerely excited about its determination to develop China's natural health food market."

Gui said she believes that this collaboration could unlock a multi-channel and multi-dimensional strategic cooperation between Natural Food and PepsiCo along the entire value chain in areas such as branding, products, distribution, marketing and management.