Purchase, New York, Dec 10, 2007 - PepsiCo and Strauss Group announced today the signing of an agreement to form a joint venture partnership to operate Sabra, the top-selling and fastest-growing maker of hummus, with sales approaching approximately $56 million through September of this year. Last year, total U.S. sales of hummus grew to $180 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 will expand FLNA's role in providing healthier snack options and highlights the company's commitment to the on-trend fresh category. PepsiCo's FLNA division 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 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 its own refrigerated direct-store-delivery system.
"Sabra is a wonderful opportunity to expand PepsiCo's role in providing healthier options in snacking and the joint venture fits perfectly with PepsiCo's 'Performance with Purpose' agenda by demonstrating our commitment to fresh dips and spreads," said Al Carey, president and chief executive officer of Frito-Lay North America. "Sabra is already the leader in hummus, and I anticipate other Sabra fresh dips and spreads to make a similar positive impact on consumers. Sabra products are a perfect complement to Stacy's pita chips for any dipping occasion."
"Thanks to its experience and know-how in the development, manufacturing and marketing of fresh food products, Strauss Group has been developing a new food experience in the U.S. by identifying the potential in the fresh dips and spreads business. I am convinced that the partnership between FLNA 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," said Erez Vigodman, president and chief executive officer of Strauss Group. "Sabra will lead the freshness 'revolution' in the United States and Canada, consistent with notable emerging consumer trends in the world today."
Terms of the transaction were not disclosed. The transaction is expected to be finalized in early 2008.
About Strauss Group
Strauss Group (TASE: STRS) is a fast-growing international food and beverage company, with approximately 10,000 employees, that has achieved double-digit growth for the fifth straight year. With a 70-year history of excellence and innovation, Strauss offers superior quality brands, products and services while meeting the latest consumer trends.
Strauss Group's business is comprised of the health and wellness division, which primarily includes fresh foods, the fun and indulgence division, and the coffee division. The Group has cultivated its coffee business extensively and is among the top ten players in the world's coffee markets with operations in 11 countries, and is one of the largest corporations in the emerging markets of Central and Eastern Europe and the second-largest in Brazil. The Group's global fun and indulgence activities have focused around the development of a unique line of chocolate bars under the Max Brenner brand. In North America, the Group's health and wellness business is being led by Sabra.
About Frito-Lay North America
Frito-Lay, based in Plano, TX, is the $10 billion convenience food division of PepsiCo.
About PepsiCo
PepsiCo is one of the world's largest food and beverage companies, with 2006 annual revenues of more than $35 billion. The company employs approximately 168,000 people worldwide, and its products are sold in approximately 200 countries. Its principal businesses include: Frito-Lay snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and Quaker foods. The PepsiCo portfolio includes 17 brands that generate $1 billion or more each in annual retail sales. PepsiCo's commitment to sustainable growth, defined as Performance with Purpose, is focused on generating healthy financial returns while giving back to communities the company serves. This includes meeting consumer needs for a spectrum of convenient foods and beverages, reducing the company's impact on the environment through water, energy and packaging initiatives, and supporting its employees through a diverse and inclusive culture that recruits and retains world-class talent. PepsiCo is listed on the Dow Jones North America Sustainability Index and Dow Jones World Sustainability Index.