PepsiCo to Acquire Full Ownership of Sabra and Obela

PepsiCo said the agreement enables it to ‘accelerate innovation in fresh dips and spreads.’

November 26, 2024

PepsiCo Inc. announced its agreement to acquire the remaining 50% interest in Sabra Dipping Company LLC (Sabra) and PepsiCo-Strauss Fresh Dips & Spreads International GmbH (Obela) and become the sole owner of both companies, according to a press release.

PepsiCo said that 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 formed 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 $400 million 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,” PepsiCo said.

"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."

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

In October, PepsiCo announced it had entered into a definitive agreement to acquire Garza Food Ventures LLC, dba Siete Foods, for $1.2 billion. “The acquisition will complement PepsiCo's portfolio with the addition of an authentic, Mexican-American brand, while also growing its better-for-you food offerings. Siete products will bring a rich, new aspect to the PepsiCo multicultural portfolio,” said the company in a press release.

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