PepsiCo: to acquire full ownership of two Strauss JVs

Purchase / NY. (pci) PepsiCo Inc. announced its agreement to acquire the remaining 50 percent interest in Sabra Dipping Company, LLC (Sabra) and PepsiCo-Strauss Fresh Dips + Spreads International GmbH (Obela) and become the sole owner of these companies, which make Sabra and Obela products.

Sabra and Obela are currently 50/50 joint ventures that had been formed between PepsiCo and Strauss Group to manufacture, distribute, and sell refrigerated dips and spreads. The Sabra joint venture is based in New York and operates in the U.S. and Canada. The Obela joint venture is based in Geneva and operates in Australia, New Zealand and Mexico.

PepsiCo has focused on the fresh dips category for over 15 years, forming Sabra and Obela as 50/50 joint ventures with the Strauss Group in 2008 and 2012, respectively. Sabra has become a leading hummus brand with nearly USD 400MM in retail sales in the U.S. This transaction will enable PepsiCo to continue to transform its portfolio and drive accelerated innovation to develop more products that meet the growing demand for positive choices from North American consumers.

«As we evolve our food portfolio and bring people more choices for more occasions, our aim is to meet the growing demand for positive choices and on-the-go options,» said Steven Williams, Chief Executive Officer, PepsiCo Foods North America. «Nutritious, simple foods like refrigerated dips and spreads represent a space we have long desired to expand in the U.S. and Canada. We are grateful to the Strauss Group for our long and successful partnership and look forward to this next chapter for the Sabra and Obela brands, as well as the PepsiCo food portfolio.»

The transactions are subject to customary closing conditions and are expected to close by the end of 2024.