From Co-Op to Pepsi: How Siete Built Their Empire

PepsiCo recently bought Siete Foods, a family-owned Mexican food company, for $1.2 billion. The company started small, with just a homemade almond flour tortilla recipe in an Austin kitchen.

The journey started with Veronica Garza’s personal health battle. Diagnosed with multiple autoimmune conditions, she adopted a grain-free diet to manage her symptoms. But for Veronica, giving up tacos and fajitas—culinary staples of her Mexican-American heritage— was less than ideal. Determined to find a solution, she began experimenting in her kitchen, eventually perfecting a tortilla made from almond flour that was both delicious and healthy.

Friends and families loved her almond flour tortillas and soon she discovered that she had enough demand to sell them as a side-hustle. As demand increased, Veronica, along with her mother Aida, spent weekends making tortillas. They bought griddles, fitting six to eight tortillas at a time, and in a single weekend, would produce over 50 packs. Despite the growing demand, Veronica hesitated to go all in. As a teacher, she valued the security of a steady paycheck and health insurance. But her brother Miguel saw potential and convinced her to test the waters with a local grocery store.

A Breakthrough at Wheatsville

Their first breakthrough came at Wheatsville, an Austin co-op. Armed with warm tortillas in a plastic bag, Miguel and Veronica convinced the store to stock their product, which at the time was humorously called "Must B Nutty." Within eight months, Siete’s tortillas had earned $40,000 in sales and become the top-selling refrigerated item at the store. Encouraged by their success, Veronica left her teaching job in October 2014 to work full-time on Siete. But the next hurdle—getting into Whole Foods—wasn't as easy.

Getting into Whole Foods

Whole Foods turned out to be a tough door to open. After repeated “no’s” from Whole Foods, Siete’s fortune changed when a customer who loved their tortillas mentioned the brand to John Mackey, the co-founder and CEO of Whole Foods. The very next day, Miguel received an email from Whole Foods, expressing interest. By early 2015, Siete tortillas hit the shelves of Whole Foods’ Austin flagship store, retailing at $10 per pack.

The following year, Siete entered the BeyondSKU Accelerator, a program that helped them think strategically about their brand operations. During this time, they realized the brand’s core was about family and tradition. With advice from mentors, they changed their name from "Must B Nutty" to "Siete," symbolizing the seven family members working together to build the business.

At the end of the accelerator, Siete raised $1 million from angel investors, which enabled them to by machinery to help automate production. This funding marked a pivotal moment for the brand, allowing them to scale up and meet growing demand.

A Critical Meeting—and a Major Setback

One of Siete’s early investors introduced them to Dwight Richmond, a national buyer at Whole Foods. Known for his tough demeanor, Dwight surprised the team by smiling during their pitch, signaling his approval. With his backing, Siete expanded into additional Whole Foods regions, but success didn’t come without challenges.

A major setback hit when a distributor reported an entire pallet of Siete’s tortillas—meant for Whole Foods—had molded. The reason? The tortillas had been stored in a humid environment near fruit, which has mold spores.

The moldy tortillas translated into half a month’s production and around $30,000 in lost product. The Garza family rallied, spending a straight week in the kitchen to make up for the lost batch.

Navigating Growth

Siete's rapid growth posed another challenge: finding a trustworthy manufacturer. Miguel thought back to a conversation he had with John Foraker (former CEO of Annie’s organic and current CEO of Once Upon A Farm.) John advised Miguel to run fast if they had a product that was innovative and had traction since it was likely bigger companies would copy it. Unlike when John was building Annie’s, Siete didn’t have the luxury of time. Speed was critical to stay competitive.

Even though concerns about being copied were real, the need to scale production was urgent.

With research and a mutual connection, they found a manufacturer willing to partner with them. They purchased new equipment, installed it at the facility, and were hands-on throughout the process to ensure quality control.

As Siete continued to grow, Whole Foods asked if they made tortilla chips. Although they hadn’t yet, the family quickly developed them, conducting all research and development in-house. Their scrappy, hands-on approach enabled them to expand into multiple product categories, further solidifying their place on the shelves.

In 2019, Siete received a $90 million investment from Stripes Group, a major milestone that propelled their expansion. By 2020, the company had hit $200 million in retail sales.

Today and Beyond

Today, Siete Foods’ product line—which now includes grain-free tortillas, salsas, seasonings, and more—can be found in nearly 40,000 retailers, including Target, Kroger, and Walmart. The company’s annual revenue is expected to reach $500 million by the end of 2024.

Through it all, the Garza family has stayed true to their roots. In 2021, they launched the Juntos Fund, a $2 million initiative to support Latino small businesses with both funding and mentorship.

As PepsiCo prepares to bring Siete Foods into its portfolio, the Garzas' story is a powerful reminder that some of the most valuable innovations come from a simple desire to honor family, heritage, and health.