PURCHASE, N.Y., March 31 /PRNewswire-FirstCall/ -- PepsiCo and Strauss Group announced that the formation of a joint venture partnership to operate Sabra, the top-selling and fastest-growing maker of hummus, has been completed. Sabra had sales of $65 million in 2007. Last year, total U.S. sales of hummus grew to $192 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 expands FLNA's role in providing healthier snack options and aligns with the 'fresh' trend. PepsiCo's FLNA business unit 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, such as soybean and canola 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 Sabra's own refrigerated direct-store-delivery system.
"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."
"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."
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. For more information, please visit www.strauss-group.com.
About Frito-Lay North America
Frito-Lay, based in Plano, TX, is the $11 billion convenience food division of PepsiCo.
PepsiCo (NYSE:PEP) is one of the world's largest food and beverage companies, with 2007 annual revenues of more than $39 billion. The Company employs approximately 185,000 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 18 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. As a member of the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability North America Index (DJSI North America), PepsiCo is a recognized leader in sustainability. For more information, please visit www.pepsico.com.
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