DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer and challenger brands. In today’s edition: PepsiCo buys to strengthen Chinese presence; Sugar Crave take to Crowdcube to go national; and Grab raises amidst Gojek merger deal rumours. 

PepsiCo buys to strengthen Chinese presence

PepsiCo Inc has agreed to buy Chinese snack brand Be & Cheery from local jujube maker Haoxiangni Health Food Co Ltd for USD$705m, the companies said.

The US multinational food and beverage maker said the acquisition of Be & Cheery, which sells snacks from nuts to dried fruits mainly on Chinese e-commerce platforms, was an important step in its goal to become China’s leading consumer-focused food and beverage company.

“Be & Cheery adds direct-to-consumer capability, positioning us to capitalise on continued growth in e-commerce, and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels,” Ram Krishnan, CEO of PepsiCo Greater China, said in a statement on Sunday.

“We also expect to leverage Be & Cheery’s innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets.”

Founded in 2003, Be & Cheery is one of the largest online snack companies in China and reported revenues of about 5bn yuan (USD$711.7m) in 2019.

Sugar Crave take to Crowdcube to go national

Award-winning treat delivery service Sugar Crave is looking to raise £150k on Crowdcube. The company, which aims to deliver within an hour of the order, saw a profit in its first year of trading. 

Sugar Crave’s business is trying to tap into consumer desire to have food delivered to your door, noting that pick ‘n’ mix is one of the most underserved areas in this space. Also, with 47% of consumers spending less money on out-of-home entertainment, and 50% eating out less, the 'Big Night In' remains a key opportunity for the brand.

The company has over 17.5k followers on Facebook, and covers nearly 80,000 postcodes across the UK. With a confectionery market worth £5.3bn, Sugar Crave is looking to carve its own niche in this industry. 

The funding will be used to update branding design a new website and embed a new ordering system. The company is also developing an app which will allow them to send targeted notifications and provide a one-tap ordering system. It is also hoped the funding will allow them entry to every major UK town and city.

Grab raises amidst Gojek merger deal rumours

Southeast Asian on-demand transport business Grab has raised USD$856m more in funding, in two tranches from strategic Japanese investors, specifically to help grow the other arm of its business, in payments and financial services.

The news comes directly on the heels of rumours that Grab is in talks to merge with its big regional rival, Gojek. Both companies have denied the reports, although a source close to one of them confirms that they have been talking for over 3 months — starting just after Gojek founder and former CEO left the company in October to join Indonesian president Joko Widodo’s cabinet.

Grab’s growth of its “super app” — in which it (like others pursuing a similar strategy) provides a one-stop shop for consumers to both see to their transportation needs, but also other aspects of their connected consumer life, such as eating, entertainment and managing their money — has involved the company partnering with a number of other financial giants, including Mastercard, Credit Saison, Chubb, and ZhongAn Online P&C Insurance Co. Ltd.

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