PepsiCo Takes Full Ownership of Sabra and Obela

In a major strategic move, PepsiCo has announced it will acquire full ownership of Sabra Dipping Company and Obela, taking over the remaining 50% stakes in both companies from Strauss Group. This deal marks the end of a longstanding joint venture with Strauss, which began in 2008 for Sabra and 2012 for Obela.

This acquisition will make PepsiCo the sole owner of two popular refrigerated dips and spreads brands: Sabra, which is headquartered in New York and widely known in North America, and Obela, which operates in markets such as Australia, New Zealand, and Mexico. Sabra, in particular, has become a household name, especially for its hummus products, generating nearly $400 million in annual retail sales.

Strategic Importance for PepsiCo

PepsiCo’s acquisition of Sabra and Obela aligns with its ongoing efforts to expand its portfolio with more nutritious and convenient food options. As Steven Williams, PepsiCo’s Chief Executive Officer of Foods North America, explains, this move is part of a broader strategy to meet the growing demand for healthier, on-the-go foods. Refrigerated dips and spreads are an increasingly popular choice for health-conscious consumers, and PepsiCo aims to leverage its expertise in the category to cater to this rising demand.

“We’re excited to have Sabra and Obela under our sole ownership as we continue to evolve our food portfolio to include more nutritious, simple foods for all occasions,” said Williams. “The acquisition allows us to build on the success of these brands and offer even more choices to consumers in North America and beyond.”

A Strong Future Ahead

PepsiCo has expressed deep gratitude to Strauss Group for its partnership over the years. This collaboration helped both Sabra and Obela grow into the beloved brands they are today. However, now that the acquisition is complete, PepsiCo is looking forward to leading both brands through their next chapter of innovation and growth.

This acquisition also fits with PepsiCo’s ongoing transformation to include more consumer-friendly products. By bringing these two brands under its wing, PepsiCo will be able to expand its presence in the refrigerated food space, which is becoming increasingly important as people opt for healthier snacks and meals.

What’s Next for Sabra and Obela?

The transaction, which is subject to standard closing conditions, is expected to be finalized by the end of 2024. While the financial terms of the deal have not been disclosed, the acquisition is a major milestone in PepsiCo’s continued efforts to diversify its food and beverage portfolio and meet the evolving needs of health-conscious consumers.

With PepsiCo at the helm, Sabra and Obela are poised to continue expanding and innovating in the refrigerated dips and spreads category, offering fresh and nutritious options to more customers around the globe.

Stay tuned for further updates as PepsiCo moves forward with integrating these two brands into its broader portfolio.