PepsiCo’s bid for Pipers Crisps cleared by competition regulator
The Competition and Markets Authority (CMA) has decided to clear PepsiCo’s potential acquisition of Pipers Crisps following a Phase 1 investigation.
The purchase was cleared on the basis that PepsiCo and Pipers Crisps do not compete with each other to supply similar markets such as supermarkets, independent retailers and foodservice outlets.
It added that PepsiCo, the multinational which also owns Walkers, is generally not a strong player in premium potato crisps in any sales channel, and so there is limited scope for PepsiCo and Pipers Crisps competing closely against one another.
The investigation found that Pipers “produces premium potato crisps only, while PepsiCo primarily produces conventional potato crisps”.
PepsiCo and Pipers Crisps will also continue to face competition from products like Kettle and Tyrrells, and by conventional products such as McCoys.
PepsiCo hopes to complete the acquisition soon and plans to accelerate the brand’s growth in UK and export markets.
At the time the potential acquisition was announced, James McKinney Pipers managing director said PepsiCo’s commitment to accelerating the growth of Pipers would mean more people would be able to enjoy its products which have been developed “to suit evolving tastes while establishing a strong foothold in the market”.
Ian Ellington, PepsiCo UK’s general manager, remarked on Pipers’ “uncompromising commitment to delivering on taste and quality”, which he said PepsiCo shared.
He said: “We’ve long admired their entrepreneurial spirit. The Pipers’ brand has a strong proposition within the market, with stand-out taste, flavours and appeal.”