PepsiCo has agreed to acquire the remaining 50% stake in Sabra Dipping Co. (Sabra) and PepsiCo-Strauss Fresh Dips & Spreads International (Obela), to become their sole owner.
Currently, Sabra and Obela are 50-50 joint ventures between PepsiCo and Strauss Group, which manufacture, distribute, and sell refrigerated dips and spreads.
Sabra is based in New York and operates in the US and Canada, while Obela is based in Geneva and operates in Australia, New Zealand, and Mexico.
The proposed transactions are expected to be completed by the end of this year, subject to certain customary closing conditions.
PepsiCo Foods North America CEO Steven Williams 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.
“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.”
PepsiCo formed Sabra and Obela as joint ventures with the Strauss Group in 2008 and 2012 respectively, to focus on the fresh dips category.
Sabra has become a leading hummus brand, distributing hummus and guacamole tubs and ready-to-go snack packs to retailers across the US and Canada.
PepsiCo said the transaction will help transform its portfolio and develop more products that address the growing demand for positive choices from North American consumers.
Last year, PepsiCo teamed up with the Stanford Institute for Human-Centered Artificial Intelligence, an organisation dedicated to promoting the future of artificial intelligence (AI).
PepsiCo is the first CPG company to join Stanford HAI’s Corporate Affiliate Programme.
The beverage company aims to pursue industrialised AI applications, responsible AI and insights into advanced research, education, policy, and practice.
