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PEPSICO TO ACQUIRE FULL OWNERSHIP OF SABRA AND OBELA
PEPPepsiCo(PEP) Prnewswire·2024-11-22 09:15

Core Viewpoint - PepsiCo has announced its agreement to acquire the remaining 50% interest in Sabra Dipping Company and Obela, becoming the sole owner of these brands, which focus on refrigerated dips and spreads to meet growing consumer demand [1][3][4] Company Overview - Sabra and Obela were previously 50/50 joint ventures between PepsiCo and Strauss Group, with Sabra operating in the U.S. and Canada, and Obela in Australia, New Zealand, and Mexico [2] - The acquisition allows PepsiCo to enhance its portfolio in the fresh dips category, which it has been focusing on for over 15 years, with Sabra being a leading hummus brand generating nearly 400millioninretailsalesintheU.S.[3][4]StrategicIntent−TheCEOofPepsiCoFoodsNorthAmericaemphasizedthecompany′saimtoevolveitsfoodportfoliotoprovidemorenutritiousandsimplefoodoptions,particularlyintherefrigerateddipsandspreadssegment[4]−Thetransactionisexpectedtoclosebytheendof2024,subjecttocustomaryclosingconditions[4]FinancialContext−PepsiCogeneratedover400 million in retail sales in the U.S. [3][4] Strategic Intent - The CEO of PepsiCo Foods North America emphasized the company's aim to evolve its food portfolio to provide more nutritious and simple food options, particularly in the refrigerated dips and spreads segment [4] - The transaction is expected to close by the end of 2024, subject to customary closing conditions [4] Financial Context - PepsiCo generated over 91 billion in net revenue in 2023, supported by a diverse portfolio of beverages and convenient foods [5] - The company aims to be a global leader in beverages and convenient foods through its strategic transformation initiative, pep+ [6]