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PepsiCo Acquires Full Ownership of Sabra and Obela Brands
In a strategic move, PepsiCo has announced the purchase of the remaining half of Sabra and Obela dip and spread brands from Strauss Group. The acquisition, valued at $240.8 million for Sabra and $3 million for Obela, will give PepsiCo complete control over these popular brands.
Originally established as a joint venture between PepsiCo and Strauss in 2008, Sabra has become a household name in the better-for-you food category, with nearly $400 million in U.S. retail sales. The partnership extended to Obela four years later, with operations in Australia, New Zealand, and Mexico.
Challenges and Opportunities
Despite its success, Sabra has faced challenges in the past, including issues with salmonella and listeria contamination. Recent warnings from the FDA and market share loss prompted Strauss to consider exiting the venture. However, with the hummus market expected to grow significantly, PepsiCo sees an opportunity to rebuild and expand the brand.
The North American hummus market, currently valued at $896 million, is projected to reach $1.78 billion by 2030. PepsiCo plans to leverage its resources to drive innovation and meet consumer demand for healthier food options.
Future Growth
By taking full ownership of Sabra and Obela, PepsiCo aims to transform the brands into everyday snacks and meal options. With a focus on positive choices and on-the-go convenience, PepsiCo is committed to expanding its presence in the refrigerated dips and spreads market.
With the acquisitions of Siete Foods, Bare Foods, and PopCorners maker BFY Brands, PepsiCo continues to enhance its snacking portfolio with healthier options. These strategic moves align with the company’s goal of offering a diverse range of products to meet evolving consumer preferences.
The transactions for Sabra and Obela are set to be finalized by the end of the year, marking another milestone in PepsiCo’s efforts to drive innovation and growth in the food industry.