PepsiCo Expands Snack Business With Full Ownership Of Sabra and Obela
PepsiCo is expanding its healthier snack portfolio by becoming the sole owner of dip and spread companies Sabra Dipping Company and Obela.
PepsiCo formed Sabra and Obela as 50/50 joint ventures with the Strauss Group in 2008 and 2012, respectively, to manufacture, distribute, and sell the products. They will acquire the remaining 50% interest in each for full ownership.
Terms weren’t disclosed, but it was reported to be a $240.8 million payment for the rest of Sabra and $3 million for Obela.
PepsiCo Portfolio Expansion
PepsiCo expects the deals, which should close by the end of this year, to help it accelerate innovation meeting the growing demand for “positive choices” from North American consumers, as well as on-the-go options.
Indeed, company leaders shared during their most recent earnings call how they’re adjusting price pack architecture to respond to consumers who are shifting from multi-pack purchases to smaller, more affordable packs.
The CPG last month also announced it would acquire Garza Food Ventures, which owns the Siete Foods brand, as part of a $1.2 billion deal. Siete’s portfolio includes tortillas, salsas, seasonings, sauces, cookies, and snacks, and tracks with its larger strategy to grow both better-for-you and multicultural food offerings.
See also: How PepsiCo is Reshaping Its Omnichannel Strategy With Partnership
The Sabra joint venture is based in New York and operates in the U.S. and Canada. It has nearly $400 million in retail sales in the U.S., according to PepsiCo.
The Obela joint venture (formally PepsiCo-Strauss Fresh Dips & Spreads International GmbH) is based in Geneva and operates in Australia, New Zealand, and Mexico.
Steven Williams, CEO of PepsiCo Foods North America, noted in a statement that refrigerated dips and spreads represent a space they’ve long desired to expand in the U.S. and Canada.
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