PepsiCo Agrees to Acquire Spitz International Company

PepsiCo announced today an agreement to acquire Spitz International Inc., the leading maker of sunflower and pumpkin seeds in Canada. Upon completion of the acquisition Spitz will continue its Canadian operations in Bow Island and Medicine Hat, Alberta, and will report into Frito-Lay North America.

Spitz is the leading Canadian brand of sunflower and pumpkin seeds and has strong growth potential across North America. The acquisition will support Frito-Lay's plans to participate more broadly in the nuts and seeds category. Spitz complements Frito-Lay's growing portfolio of healthier snack options, such as this year's introduction of True North nut snacks.

Spitz seeds are distributed nationally in Canada and are readily available in the United States. The company's sunflower seeds are available in six flavors (salted, seasoned, dill pickle, spicy, chili lime and smokey bbq) and its pumpkin seeds are available in three flavors (salted, seasoned and dill pickle). All of Spitz's seeds are meticulously grown and harvested as well as roasted through the company's own patented process.

"We are looking forward to having Spitz's leading seed brands in the Frito-Lay family," said Al Carey, Frito-Lay North America President and CEO. "Spitz enables Frito Lay Canada to grow our seed business in Canada and help us expand in the U.S., while supporting PepsiCo's broader health and wellness strategy. Spitz has a very strong brand in Canada, and we plan to create new growth opportunities for the brand across North America."

"Frito Lay Canada is one of Canada's largest food companies and we have a proud history of growing small Canadian companies to expand the distribution of their products," said Marc Guay, president, Frito Lay Canada. "We're excited about the opportunities with Spitz and we'd like to thank Tom and Emmy Droog for everything they've done to build a terrific business."

Spitz International was founded in 1982 by Dutch immigrants Tom and Emmy Droog, who brought with them a passion for healthy living and farming. They began growing sunflowers in 1982 and first marketed their first sunflower seeds as bird feed before recognizing an opportunity to expand into the consumer confectionary market. Spitz not only became one of the first companies in North America to produce flavored sunflower seeds, but also one of the first to market sunflower seeds in re-sealable bags. Soon after Spitz became one of the first North American companies to market flavored pumpkin seeds.

"After nearly thirty years of hard work we're excited to see our company and brand grow and expand across North America," said Tom Droog, Spitz co-founder. "Our modest plans have surpassed our expectations and now with a company like Frito-Lay behind Spitz we know our legacy will continue and our company will be in a better position to reach our goal: to become the leading sunflower and pumpkin seed brand in North America."

Terms of the transaction were not disclosed and the agreement becomes effective upon closing.

Established in 1982 by Tom and Emmy Droog, Spitz International Inc. is Canada's leading producer of sunflower and pumpkin seeds. Spitz is Canada's leading sunflower send company and sells the top ten sunflower SKUs in Canada. The company is also a popular brand of sunflower seeds in the United States. Employing approximately 70 people, Spitz's distribution centre is based in Medicine Hat, Alberta, Canada, while the production facility and company headquarters is located in Bow Island, Alberta.

Frito-Lay North America is the $11 billion convenient foods business unit of PepsiCo, which is headquartered in Purchase, NY. In addition to Frito-Lay, PepsiCo business units include Pepsi-Cola, Quaker Foods, Gatorade and Tropicana.

PepsiCo (NYSE: PEP) is one of the world's largest food and beverage companies, with 2007 annual revenues of more than $39 billion. The company employs approximately 185,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. PepsiCo's commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities the company serves.

Source: PepsiCo