Pepsi Grows Snacking Business With New Acquisition Pact
PURCHASE, N.Y. — PepsiCo Inc. is evolving its snacking business through a new acquisition pact.
The snacking manufacturer entered into an agreement to acquire the remaining 50% interest in Sabra Dipping Co. LLC (Sabra) and PepsiCo-Strauss Fresh Dips & Spreads International GmbH (Obela), becoming 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 United States and Canada. The Obela joint venture is based in Geneva and operates in Australia, New Zealand and Mexico.
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"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, CEO of 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 has focused on the fresh dips category for more than 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 $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 that meet the growing demand for positive choices from North American consumers, the company stated.
The transactions are subject to customary closing conditions and are expected to close by the end of 2024. Additional terms of the acquisitions were not disclosed.
The deal for Sabra and Obela follows PepsiCo's recent announcement to acquire Garza Food Ventures dba Siete Foods for $1.2 billion. Siete produces heritage-inspired tortillas, salsas, seasonings, sauces, cookies, snacks and more. The deal is expected to close in the first half of 2025, as Convenience Store News previously reported.
Headquartered in Purchase, PepsiCo generated more than $91 billion in net revenue in 2023, driven by a complimentary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream.