PepsiCo and Strauss Group Complete Formation of North American Joint Venture

01/04/08 PepsiCo and Strauss Group announced that the formation of a joint venture partnership to operate Sabra, the top-selling and fastest-growing maker of hummus, has been completed. Sabra had sales of $65 million in 2007. Last year, total U.S. sales of hummus grew to $192 million.

The Sabra joint venture will produce and sell fresh dips and spreads in the U.S. and Canada, while drawing on both Strauss Group and Frito-Lay North America's (FLNA) marketplace expertise to continue building this growing business. Sabra expands FLNA's role in providing healthier snack options and aligns with the 'fresh' trend. PepsiCo's FLNA business unit and Strauss will each own 50% of the business.

The joint venture will leverage Sabra, the number one brand of hummus in the U.S. True to its Mediterranean heritage, Sabra's hummus is made with healthier oils, such as soybean and canola oils, and has no trans fat or cholesterol. Sabra products also include eggplant dips, babaganoush spreads, and Mediterranean salsa available in individual and family packs.These products, which have a strong presence in the Northeastern U.S. and Florida, are currently distributed through a combination of independent sales brokers and distributors and Sabra's own refrigerated direct-store-delivery system.

"Sabra's products are a natural complement to Frito-Lay's offerings, particularly our Stacy's pita chips," said Al Carey, president and chief executive officer of Frito-Lay North America. "We expect Sabra will continue to see positive growth because the products are in line with consumer trends like freshness and health and wellness."

"Through its experience and know-how in the development, manufacturing and marketing of fresh food products, Strauss Group has been creating a new food experience in the U.S. through the fresh dips and spreads business," said Erez Vigodman, president and chief executive officer of Strauss Group. "The partnership between Frito-Lay and Strauss will create a complementary set of competencies and expertise that will allow Sabra to lead the fresh dip category and offer consumers in North America a range of fresh dips that meets their desire for healthier, fresh foods."