• December 11, 2007

PepsiCo and Strauss Group have formed a joint venture to operate Sabra, maker of hummus with sales approaching approximately $56 million through September of this year. Last year, total U.S. sales of hummus grew to $180 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 the business. Sabra will expand FLNA's role in providing healthier snack options, and highlights the company's commitment to the on-trend fresh category. PepsiCo's FLNA division and Strauss will each own 50% of the business.

Terms of the transaction were not disclosed. The transaction is expected to be finalized in early 2008.

Frito-Lay is the $10 billion convenience food division of PepsiCo.

--Nina M. Lentini