PepsiCo will become the sole owner of Sabra Dipping Company, LLC (Sabra) and PepsiCo-Strauss Fresh Dips & Spreads International GmbH (Obela) by acquiring the remaining 50% interest in both businesses.
Sabra and Obela are 50/50 joint ventures between PepsiCo and Strauss Group to manufacture, distribute, and sell refrigerated dips and spreads.
The Sabra joint venture, based in New York, operates in the US and Canada.
Obela is based in Geneva and operates in Australia, New Zealand and Mexico.
Steven Williams, chief executive officer of PepsiCo Foods North America, stated, "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."
Fresh Dips
The joint ventures with Sabra and Obela were formed in 2008 and 2012, respectively, highlighting PepsiCo's focused on the fresh dips category.
Sabra has grown into a leading hummus brand, generating nearly $400 million (€384 million) in retail sales in the US.
This transaction will enable PepsiCo to continue to transform its portfolio and drive accelerated innovation to develop more products that meet the growing demand of North American consumers.
Williams added, "Nutritious, simple foods like refrigerated dips and spreads represent a space we have long desired to expand in the US 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."
In October, PepsiCo posted a surprise drop in third-quarter revenue and cut its forecast for annual sales growth, as cautious consumer spending in North America weighs on demand for its sodas and Frito-Lay snacks.
