How Siete Foods Transformed from a Gym Tortilla to a $1.2B PepsiCo Acquisition

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In just a few years, Siete Foods has skyrocketed from selling grain-free tortillas at a gym to becoming a billion-dollar player in the Mexican American food market. Founded by Veronica Garza, this brand has redefined how we think about tortillas and healthier eating.

The Journey Begins: A Personal Health Crisis

Veronica Garza’s journey started with a health scare. In 2014, she faced a series of autoimmune disorders, including lupus and Hashimoto’s disease, which forced her to reconsider her diet.

Discovering the Grain-Free Lifestyle

  • What is “Grain-Free”?: At the time, Garza didn’t even know what grain-free meant. She had to look it up, realising it excluded flour and corn, staples in her diet.

  • Paleo Influence: Inspired by her brother Rob’s discovery of the paleo diet through CrossFit, Veronica adopted an elimination diet that significantly improved her health.

While her symptoms improved, Garza felt disconnected from her culture, especially during family gatherings where traditional foods were served. The one thing she missed most? Tortillas.

The Kitchen Experimentation

Determined to create a grain-free tortilla that respected her heritage, Garza began experimenting with almond flour.

First Taste of Success

  • Family Approval: The first tortilla was a hit with her family, who encouraged her to sell it at their family-owned CrossFit gym.

  • Positive Feedback: Customers were impressed, often saying they preferred it even over traditional tortillas, including those with gluten sensitivities.

The Birth of Siete Foods

Siete Foods officially launched, focusing on grain-free and gluten-free products that honour Mexican American cuisine.

A Family Affair

Veronica’s brother, Miguel Garza, joined the venture after graduating from law school.

  • A Business Proposition: Miguel suggested that Veronica take her product beyond a side hustle. He believed their product could thrive in the burgeoning health-food market.

Scaling Up: From Local Co-op to National Retailers

The First Steps

To get Siete Foods off the ground, Veronica and Miguel faced the challenge of securing retail accounts.

  • Initial Outreach: Miguel’s persistence led them to a local co-op in Austin, where they pitched their tortilla.

  • First Success: The buyer was impressed and agreed to stock their product on the spot.

Breaking into Whole Foods

Moving from a co-op to major retailers like Whole Foods was no small feat.

  • Strategic Connections: A customer from the co-op connected them with Whole Foods, leading to an email from the retailer expressing interest in carrying Siete Foods.

Expanding Product Lines

As demand grew, Siete Foods expanded its offerings beyond tortillas to include:

  • Chips
  • Salsas
  • Cookies

This diversification helped solidify their position as a go-to brand for healthier Mexican American foods.

The PepsiCo Acquisition: A New Chapter

Fast forward to recent events: Siete Foods was acquired by PepsiCo for a staggering $1.2 billion.

Why PepsiCo?

  • Strategic Alignment: The acquisition aligns with PepsiCo’s commitment to health and wellness, allowing Siete Foods to scale rapidly while maintaining its core values.

  • Future Growth: With PepsiCo’s resources, Siete Foods can expand its reach and introduce more innovative products.

Lessons from the Garza Family

Key Takeaways for Aspiring Entrepreneurs

  • Stay Authentic: Veronica’s journey highlights the importance of remaining true to one’s roots while innovating in the marketplace.

  • Family Support: The Garza family’s collaboration was crucial to overcoming initial hurdles and achieving growth.

  • Persistence Pays Off: From humble beginnings to a billion-dollar acquisition, their story exemplifies how hard work and resilience can lead to success.

Conclusion

Siete Foods’ transformation from a small gym venture to a billion-dollar brand is nothing short of inspiring. With its commitment to health and culture, Siete Foods has not only created a successful business but also redefined what it means to enjoy traditional foods in a healthier way.

This journey underscores the power of innovation, family support, and authenticity in building a brand that resonates with consumers. As Siete Foods moves forward under the PepsiCo umbrella, the future looks bright for this remarkable company.


Relevant Links for Further Reading

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