PepsiCo snacks on Spitz seeds

Food and beverage giant PepsiCo has acquired Spitz International Inc., an Alberta company two Dutch immigrants cultivated into Canada's leading brand of sunflower and pumpkin seeds.

The details of the deal were not released Wednesday, but PepsiCo said Spitz will fall under its Frito-Lay North America division.

'We'll certainly be part of a larger organization, but that gives us the resources to do some bigger things.' Myles Hamilton, Spitz vice-president

The Canadian company will continue to operate out of its production centre and head office in Bow Island, about 350 kilometres southeast of Calgary, and keep its distribution centre in Medicine Hat.

The acquisition will expand Frito-Lay's "growing portfolio of healthier snack options," said a PepsiCo news release. Frito-Lay's snack food business rakes in $11 billion US a year.

Tom and Emmy Droog founded Spitz International in 1982, when they began growing sunflowers in Bow Island and marketing the seeds as bird feed. They soon realized there was a market for flavoured sunflower seeds packaged in resealable bags.

Spitz sunflower seeds are available in six flavours including chili lime and spicy, while there are three varieties of pumpkin seeds in salted, seasoned and dill pickle.

"After nearly 30 years of hard work, we're excited to see our company and brand grow and expand across North America," said Tom Droog in a news release.

Spitz's staff of 70 were told about the deal on Tuesday, said Spitz vice-president and general manager Myles Hamilton.

"I think there's some excitement about the potential that's created here," he told CBC News.

"We believe that Frito-Lay will take the Spitz brand not just further across North America but it has the potential to go into other countries as well."

Hamilton said he expects business to double, and that Spitz will need to increase its current 4,000 hectares of sunflowers in Alberta and Manitoba to meet the anticipated demand.

"We'll certainly be part of a larger organization, but that gives us the resources to do some bigger things," he said.