Targeting both the health and wellness trend as well as the promising Eastern European market, PepsiCo has reached a definitive agreement to purchase Bulgaria-based Penelopa, a producer and seller of branded nuts and seeds. The acquisition follows other forays into the health market, such as PepsiCo's acquisition of Sara Lee's Duyvis brands.

PepsiCo is currently the largest snack company in the world, with a 23% share of the market in Western Europe, ahead of competitors Proctor & Gamble, with a 5% share, and United Biscuits, with a 4% share. PepsiCo savory snacks under the Lay's, Ruffles, Cheetos and Doritos brands are imported into Bulgaria from Romania, Greece and Turkey.

Michael White, PepsiCo vice chairman and CEO of PepsiCo International, said: "Penelopa is an outstanding company that will dramatically increase our presence in Bulgaria, a consumer market enjoying robust economic growth, as well as in the broader Balkans region. Furthermore Penelopa's line of high-quality nuts and seeds is very consistent with our global focus on addressing consumers growing interest in health and wellness."

Terms of the agreement were not disclosed.

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