PepsiCo to Take Full Ownership of Sabra and Obela Dips

In a significant move, PepsiCo has announced its plans to acquire full ownership of Sabra Dipping Company and Obela, taking over the remaining 50% stakes in both brands from Strauss Group. This marks the end of the joint ventures that have existed since 2008 for Sabra and 2012 for Obela.

Expanding PepsiCo’s Reach in the Refrigerated Dips Market
Sabra, headquartered in New York, has become a household name in the U.S. and Canada, with its hummus products generating nearly $400 million in annual retail sales. Obela, based in Geneva, operates in key markets like Australia, New Zealand, and Mexico. With this acquisition, PepsiCo solidifies its position as the sole owner of both the Sabra and Obela brands, which are known for their high-quality refrigerated dips and spreads.

PepsiCo’s Chief Executive Officer of Foods North America, Steven Williams, emphasized the strategic importance of the acquisition. He noted that this move aligns with PepsiCo's broader vision of offering more nutritious and consumer-friendly options. "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," Williams explained.

A Step Toward a Healthier and More Convenient Food Portfolio
PepsiCo's acquisition of Sabra and Obela fits into the company’s ongoing strategy to transform its portfolio by incorporating healthier, more nutritious food options. Refrigerated dips and spreads, a space that PepsiCo has long been interested in expanding, cater to the increasing demand for convenient and health-conscious food choices, particularly in the U.S. and Canada.

Over the years, Sabra has successfully dominated the hummus category, and with PepsiCo now in full control, the brand is expected to continue to innovate and expand in the fresh dips market. Obela, on the other hand, is expected to benefit from PepsiCo’s expertise in international markets, especially in regions like Australia, New Zealand, and Mexico.

Looking Ahead
The transaction, which is expected to finalize by the end of 2024, is subject to standard closing conditions. Although the financial terms have not been disclosed, this acquisition is seen as a major step forward for PepsiCo in terms of expanding its food and beverage offerings with a focus on nutritious and simple options.

PepsiCo has expressed its gratitude for the 15-year partnership with Strauss Group and looks forward to taking the reins of both the Sabra and Obela brands, continuing their legacy while driving innovation in the dips and spreads category.