Enables PepsiCo to Accelerate Innovation in Refrigerated
Fresh Dips and Spreads to Meet Growing Consumer
Demand
Further Expands Company's Positive Choice Portfolio
PURCHASE, N.Y., Nov. 22,
2024 /PRNewswire/ -- PepsiCo, Inc. (NASDAQ: PEP)
today announced its agreement to acquire the remaining 50% interest
in Sabra Dipping Company, LLC (Sabra) and PepsiCo-Strauss Fresh
Dips & Spreads International GmbH (Obela) and become the sole
owner of these companies, which make Sabra and Obela products.
Sabra and Obela are currently 50/50 joint ventures that had been
formed between PepsiCo and Strauss Group to manufacture,
distribute, and sell refrigerated dips and spreads. The Sabra joint
venture is based in New York and
operates in the U.S. and Canada.
The Obela joint venture is based in Geneva and operates in Australia, New
Zealand and Mexico.
PepsiCo has focused on the fresh dips category for over 15
years, forming Sabra and Obela as 50/50 joint ventures with the
Strauss Group in 2008 and 2012, respectively. Sabra has become a
leading hummus brand with nearly $400MM in retail sales in the U.S.
This transaction will enable PepsiCo to continue to transform its
portfolio and drive accelerated innovation to develop more products
that meet the growing demand for positive choices from North
American consumers.
"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," said Steven Williams, Chief Executive Officer,
PepsiCo Foods North America. "Nutritious, simple foods like
refrigerated dips and spreads represent a space we have long
desired to expand in the U.S. and Canada. We are grateful to the Strauss Group
for our long and successful partnership and look forward to this
next chapter for the Sabra and Obela brands, as well as the PepsiCo
food portfolio."
The transactions are subject to customary closing conditions and
are expected to close by the end of 2024. Additional terms of the
acquisitions were not disclosed.
About PepsiCo
PepsiCo products are enjoyed by
consumers more than one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more
than $91 billion in net revenue in
2023, driven by a complementary beverage and convenient foods
portfolio that includes Lay's, Doritos, Cheetos, Gatorade,
Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages,
including many iconic brands that generate more than $1 billion each in estimated annual retail
sales.
Guiding PepsiCo is our vision to Be the Global Leader in
Beverages and Convenient Foods by Winning with pep+ (PepsiCo
Positive). pep+ is our strategic end-to-end transformation that
puts sustainability and human capital at the center of how we will
create value and growth by operating within planetary boundaries
and inspiring positive change for planet and people. For more
information, visit www.PepsiCo.com.
PepsiCo Cautionary Statement
Statements in this
communication that are "forward-looking statements" are based on
currently available information, operating plans and projections
about future events and trends. Terminology such as "believe,"
"expect," "future," " "intend," "may," "plan," "position,"
"potential," "should," "will" or similar statements or variations
of such words and other similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain such terms. Forward-looking
statements inherently involve risks and uncertainties that could
cause actual results to differ materially from those predicted in
such forward-looking statements. Such risks and uncertainties
include, but are not limited to: the risks associated with the
deadly conflict in Ukraine; future
demand for PepsiCo's products; damage to PepsiCo's reputation or
brand image; product recalls or other issues or concerns with
respect to product quality and safety; PepsiCo's ability to compete
effectively; PepsiCo's ability to attract, develop and maintain a
highly skilled and diverse workforce or effectively manage changes
in our workforce; water scarcity; changes in the retail landscape
or in sales to any key customer; disruption of PepsiCo's
manufacturing operations or supply chain, including continued
increased commodity, packaging, transportation, labor and other
input costs; political, social or geopolitical conditions in the
markets where PepsiCo's products are made, manufactured,
distributed or sold; PepsiCo's ability to grow its business in
developing and emerging markets; changes in economic conditions in
the countries in which PepsiCo operates; future cyber incidents and
other disruptions to our information systems; failure to
successfully complete or manage strategic transactions; PepsiCo's
reliance on third-party service providers and enterprise-wide
systems; climate change or measures to address climate change and
other sustainability matters; strikes or work stoppages; failure to
realize benefits from PepsiCo's productivity initiatives;
deterioration in estimates and underlying assumptions regarding
future performance of our business or investments that can result
in impairment charges; fluctuations or other changes in exchange
rates; any downgrade or potential downgrade of PepsiCo's credit
ratings; imposition or proposed imposition of new or increased
taxes aimed at PepsiCo's products; imposition of limitations on the
marketing or sale of PepsiCo's products; changes in laws and
regulations related to the use or disposal of plastics or other
packaging materials; failure to comply with personal data
protection and privacy laws; increase in income tax rates, changes
in income tax laws or disagreements with tax authorities; failure
to adequately protect PepsiCo's intellectual property rights or
infringement on intellectual property rights of others; failure to
comply with applicable laws and regulations; and potential
liabilities and costs from litigation, claims, legal or regulatory
proceedings, inquiries or investigations.
For additional information on these and other factors that could
cause PepsiCo's actual results to materially differ from those set
forth herein, please see PepsiCo's filings with the SEC, including
its most recent annual report on Form 10-K and subsequent reports
on Forms 10-Q and 8-K. Investors are cautioned not to place undue
reliance on any such forward-looking statements, which speak only
as of the date they are made. We undertake no obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise.
Media Contact:
Andrea Foote
andrea.foote@pepsico.com
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SOURCE PepsiCo, Inc.