PepsiCo and Strauss Group to Establish Joint Venture
The new joint venture follows recent efforts by both PepsiCo and Strauss to promote health and wellness throughout their product portfolios.
3/17/2011 --- PepsiCo, Inc. and Strauss Group announced their commitment to form a joint venture partnership that will produce and sell fresh dips and spreads in key markets outside of North America. The two companies have operated a successful North American joint venture since 2007 under the Sabra brand. In North America, Sabra is the number one brand of hummus and the leader in the chilled dips and spreads category.
PepsiCo and Strauss will leverage their existing infrastructures and invest in manufacturing plants, technologies and employees to set up local operations on a country or regional level. Each partner will own 50 percent of the new entity. Financial terms were not disclosed.
"Making healthier snacking options more accessible to consumers is a huge global opportunity, and we're well positioned to be a leader in this space," said Jaya Kumar, President of Global Nutrition Platforms, PepsiCo Global Nutrition Group. "This agreement will enhance our efforts to ensure that products made from vegetables and other fresh ingredients are both enjoyable and affordable, which supports PepsiCo's global nutrition strategy."
Gadi Lesin, President and CEO of Strauss Group, said, "PepsiCo's excellent global infrastructure combined with Strauss's knowledge, innovation and expertise in the fresh food domain, will result in an international company whose products meet the daily needs of consumers in various countries and help to improve their quality of life."
"The explosive popularity and considerable year-to-year growth of Sabra provide the momentum we need to bring similar good-for-you foods into new countries and retailers across the globe," said Giora Bar Dea, current CEO of Strauss North America. Bar Dea will take on the role as CEO of the new enterprise. "Strauss and PepsiCo are well-equipped to apply what we've experienced in the United States on a global level."
With nearly 50 percent category share in North America, Sabra's products include hummus, fresh salsa and eggplant dips. Sabra's 2010 revenues totaled $159 million, up nearly 45 percent from the prior year.
The new joint venture follows recent efforts by both PepsiCo and Strauss to promote health and wellness throughout their product portfolios. In October 2010, PepsiCo formed its Global Nutrition Group to accelerate product development in the areas of fruits and vegetables, whole grains, dairy and functional nutrition. PepsiCo has set a goal of tripling its annual revenues from nutritious and functional foods from approximately $10 billion in 2010 to $30 billion by 2020.
