PepsiCo officially buys Poppi for $1.95B. See which other Texas brands have been sold
A wave of recent acquisitions is reshaping the landscape of Texas's beloved food and restaurant industries, with iconic local brands and burgeoning startups catching the eye of national and international powerhouses.
From a multi-billion-dollar beverage deal to the expansion of a Houston restaurant empire, these strategic moves highlight the growing value and appeal of Texas's culinary contributions.
The trend underscores a desire by larger entities to tap into the flavors and customer loyalty cultivated by Texas-based businesses, while also signaling growth opportunities for the acquired companies.
Austin-based Poppi, the rapidly growing prebiotic soda brand, officially completed its acquisition by PepsiCo on May 19. The deal, valued at $1.95 billion, brings the beverage into PepsiCo's vast portfolio. Poppi has carved a niche with its functional beverages, reflecting PepsiCo's push into the wellness drink market.
In another significant move for PepsiCo in Texas, the global beverage and snack giant also completed its acquisition of Austin's Siete Foods in January. The deal was reported to be around $1.2 billion. Siete Foods, known for its health-conscious Mexican-American food products like grain-free tortillas and chips, further expands PepsiCo's natural and "better-for-you" food offerings.
The iconic San Antonio-based fast-food chain, Whataburger, saw a major shift in ownership in June 2019. After nearly seven decades as a family-owned enterprise, a majority stake was acquired by BDT Capital Partners, LLC, a Chicago-based merchant bank. While the Dobson family retains a minority ownership and the headquarters remain in San Antonio, the acquisition aims to accelerate the brand's expansion into new markets while preserving its Texas heritage and core values.
The Dallas-based "lodge-themed" sports bar chain, Twin Peaks, was acquired by Los Angeles-based FAT Brands in September 2021 for $300 million. FAT Brands added Twin Peaks to its growing portfolio of concepts, aiming to leverage its popular model for further expansion.
San Antonio's Taco Cabana, a fixture in the Texas fast-casual scene, was sold in July 2021 for $85 million. The acquirer was Yadav Enterprises, a California-based franchisee with stakes in other well-known brands like Jack in the Box and Denny's. The sale by its previous parent company, Fiesta Restaurant Group, allowed Fiesta to sharpen its focus on its Pollo Tropical brand.
Dallas-based Velvet Taco, a fast-casual concept celebrated for its taco creations, was acquired by private equity firm Leonard Green & Partners in November 2021. This acquisition positioned the popular chain for potential accelerated growth and expansion under new ownership.
Austin's Torchy's Tacos saw an ownership shift in November 2020 through a substantial investment, reportedly around $400 million, from GenRock Capital Management, General Atlantic, and other investors. While not a full acquisition by a single corporate entity, this private equity infusion fundamentally altered ownership and control.
In a colossal $18.7 billion mega-merger in July 2018, the Plano-based Dr Pepper Snapple Group joined forces with Keurig Green Mountain, creating the beverage giant Keurig Dr Pepper. While not a restaurant, this acquisition represented a monumental change for a massive Texas-based food and beverage company, uniting two major players in the North American beverage market.
Houston's renowned Pappas Restaurants Inc., the empire behind popular eateries like Pappadeaux and Pappasito's Cantina, announced in May its intent to acquire the bankrupt Tex-Mex chain On The Border Mexican Grill & Cantina. This move is expected to expand Pappas Restaurants' footprint within the Tex-Mex casual dining segment, bringing the Dallas-area-based chain under the wing of a deeply established Texas hospitality group.
This article originally appeared on Austin American-Statesman: From Poppi to Whataburger, here are 9 Texas brands that have been sold
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