PepsiCo has announced that it will acquire the remaining 50% stake in Sabra and Obela from Israel’s Strauss Group, making it the sole owner of both companies. Sabra and Obela are currently 50/50 joint ventures between PepsiCo and Strauss Group, focused on producing, distributing, and selling refrigerated dips and spreads. The deal is worth approximately $244 million, depending on exchange rates.
Sabra, based in New York, operates in the U.S. and Canada. Obela, headquartered in Geneva, has a presence in Australia, New Zealand, and Mexico.
In 2005, Strauss acquired 51% of Sabra’s operations for approximately $9 million, and in 2008, it signed a partnership deal with PepsiCo to acquire 50% of the operation and establish a joint venture in which each company holds 50% of the shares. Since then, Sabra has become the leading salad and spreads company in the US, leading the hummus market. The operation later expanded to other countries outside the US under the Obela brand.
“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.”
“This move is another step in executing our strategy, which aims to focus on our core businesses and leverage our resources in the best possible way,” said Shai Babad, President and CEO of Strauss Group. “As part of the group’s strategy implementation, we continue to lead significant business moves for Strauss’s operations. We want to thank all Sabra employees over the years and PepsiCo for the extraordinary journey from a small salad company to the leading hummus brand in the US.”
Sabra operates in the chilled dips and spreads market in the US and Canada, while Obela operates in Australia, New Zealand, and Mexico, focusing on hummus and guacamole activities. Sabra is the largest dips and spreads brand in the US in terms of sales volume and market share according to IRI data, with Sabra holding the largest market share in the hummus category in the US.
Sabra and Obela have approximately 700 employees (as of the end of 2023) and an innovative factory in Virginia.
