PepsiCo, Strauss Group form joint venture
March 31, 2008
by Allison Sebolt
PURCHASE, N.Y. — PepsiCo and Strauss Group have formed a joint venture to operate Sabra, a maker of hummus.
"Through its experience and know-how in the development, manufacturing and marketing of fresh food products, Strauss Group has been creating a new food experience in the U.S. through the fresh dips and spreads business," said Erez Vigodman, president and chief executive officer of Strauss Group. "The partnership between Frito-Lay 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."
The joint venture will produce and sell fresh dips and spreads in the U.S. and Canada, and Sabra will expand the role of Frito-Lay North America, a PepsiCo business, in providing healthier snacks. F.L.N.A. and Strauss will each own 50% of the business.
"Sabra’s products are a natural complement to Frito-Lay’s offerings, particularly our Stacy’s pita chips," said Al Carey, president and chief executive officer of Frito-Lay North America. "We expect Sabra will continue to see positive growth because the products are in line with consumer trends like freshness and health and wellness."
In 2007, Sabra had sales of $65 million.