Strauss and PepsiCo to launch hummus in Mexico

The Obela joint venture will use local flavors for the Mexican launch, including chipotle and red pepper flavored hummus.

Strauss Group Ltd. (TASE:STRS) and PepsiCo Inc. (NYSE: PEP) will launch Obela - a refrigerated dips and spreads brand in Mexico, at an investment of $10 million. Obela will launch varieties of hummus that meet growing consumer demand for health and wellness options.

Mexico is the first market where Obela will be launched under Strauss and PepsiCo's international joint venture Sabra Dipping Company, which they launched in the US and Canada in 2008.

Strauss and PepsiCo are using local flavors for the Mexican launch, including chipotle and red pepper flavored hummus, to give consumers a multicultural experience in every taste. Obela products will be available at retail chains throughout Mexico, including Walmart, Soriana, Chedraui and Comexa.

Strauss chairwoman Ofra Strauss said, "The excellent partnership between PepsiCo and Strauss will enable us to expand our global reach and improve more people's lives. PepsiCo's capabilities, global infrastructure and excellence combined with Strauss's knowledge, innovation and expertise in the fresh food domain, will result in an international company whose products meet the daily needs of consumers in Mexico and other countries."

PepsiCo Mexico president Pedro Padierna said, "We are constantly looking for new opportunities to grow our business by offering a wide-range of products, including great-tasting healthier choices. Strauss brings unique capabilities and expertise in fresh foods that, when combined with PepsiCo’s go-to-market and brand building strengths, will position us well to give consumers a great new line of products that complements our existing portfolio in Mexico."

Obela general director Gustavo Salas said, "There is a significant growth opportunity in Mexico in the dips and spreads category, beginning with current hummus consumers. Our goal is to make sure that at least one fifth of households in Mexico enjoy and share our products with family and friends, thus turning any moment into a very special occasion."

Strauss's share price fell 2% by mid-afternoon today to NIS 40.20, giving a market cap of NIS 4.3 billion.

Published by Globes [online], Israel business news - - on June 13, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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