PepsiCo acquired full ownership of the Sabra Obela dips brand from its former partner Strauss Group for $244 million, according to a joint statement on Friday.
PepsiCo purchased 50% of the Sabra Obela dips brand from Strauss for $244 million (NIS 900 million), meaning the brand is now fully owned by PepsiCo as the company already owned 50%.
Strauss acquired a majority ownership (51%) of Sabra in 2005 and then signed a partnership deal with PepsiCo in 2008, in which PepsiCo acquired the remaining 50% of the company.
The joint partnership would also lead to the creation of the Obela brand as a non-US-based brand for the same products.
Sabra operates in the US and Canadian markets, while Obela operates in Australia, New Zealand, and Mexico.
Sabra has the largest share of the US hummus market in terms of sales volume and market share according to IRI data.
Strauss said that the sale was part of its 2024-26 strategy, in which it aims to "focus on core activities" such as expanding operations in Israel.
"This move is another step in executing our strategy, which aims to focus on our core businesses and leverage our resources in the best possible way," Shai Babad, President and CEO of the Strauss group, said.
Sabra has faced challenges in the past year, with reports that sales had dropped 5.5% in the second quarter of 2024.
Sabra targeted with boycotts
Sabra has often been one of the most public targets for anti-Israel boycotts due to its ownership by an Israeli company and the association of its name with Israel, sabra being the name for a native-born Israeli.
Sabra hummus was marked with stickers saying "apartheid hummus" in a supermarket in the UK in January, according to JNS.
Anti-Israel student associations have also regularly targeted Sabra for its connection to Israel, with many attempting to ban it from campuses.