Business Partners

Strauss believes in partnerships, and maintains business collaborations with local partners along with partnerships with leading multinational corporations. Our partnerships are managed on the basis of a shared commitment to improving people’s lives everywhere.


Strauss and PepsiCo have worked in collaboration for over 20 years.

The partnership began in 1990 with PepsiCo Frito-Lay in the salty snacks operation, when Strauss Group (then Elite Industries Ltd.) teamed up with the American multinational Food & Beverage corporation through its subsidiary, PepsiCo Investments Europe (I) B.V. (“PepsiCo Europe”) and subsequently established the salty snack production site in Sderot, Israel.

PepsiCo and Strauss are engaged in a series of agreements. Each company holds 50% of the share capital of Strauss Frito Lay. The companies are party to a licensing agreement for the use of know-how and trademarks, which grants Strauss Frito Lay an exclusive license to manufacture, distribute and sell salty snacks, spicy snacks and extruded snacks in Israel.

Against the backdrop of the successful collaboration between the two companies and PepsiCo’s interest in entering the health category, Strauss Group and PepsiCo joined forces again, this time in the Dips & Spreads category. In 2008 Strauss entered into a partnership agreement with the global PepsiCo corporation for the development, manufacture and sale of refrigerated Dips & Spreads in the USA and Canada through Sabra Dipping Company, Inc., which quickly became market leader in North America.

In the context of deepening their commitment to consumer health and leveraging Sabra’s success, in 2012 Strauss and PepsiCo announced the extension of the partnership and the launch of a new global Dips & Spreads product line under the Obela brand.

The brand was created under the concept “Flavors that bring the world together” with the aim of connecting people through multicultural eating experiences.

Both partnerships between the companies are equal, with each holding a 50% stake in the companies.

About PepsiCo

PepsiCo is a leading Food & Beverage brand with net revenues of over $65 billion. The company offers the world’s largest portfolio of Food & Beverage brands, with 22 different product lines, each yielding annual retail sales valued at one billion dollars and marketed in over 200 countries. PepsiCo’s major brands are Frito-Lay, Gatorade, Tropicana, Quaker and Pepsi Cola, and also include hundreds of top-quality, fun Food & Beverage products which can be found in households all over the world. PepsiCo is committed to delivering sustainable growth by investing in a healthier future for people and our planet, which also signifies a solid future for the company.

PepsiCo defines its commitment as “Performance with Purpose” and promises to deliver a broad variety of food and beverage products tailored to local tastes; to find innovative ways to minimize its environmental impact such as energy conservation, controlled use of water and reducing the amounts of packaging materials it uses; and also promises its people a great work environment while respecting, supporting and investing in the local communities in which it operates.

Areas of Activity

Milestones in the Partnership

Teaming Up with PepsiCo
Elite signed a know-how agreement with the US food giant and the world's largest manufacturer of salty snacks, PepsiCo, following which the best-selling international salty snacks such as Cheetos and Ruffles "immigrated" to Israel.
Salty Snacks in Sderot
The salty snacks production plant was established in Sderot, bearing the name "Elite Sha'ar HaNegev", and the Company invested in the development of a superior potato variety that would be used to manufacture potato snack products and grown in Israel.
PepsiCo Frito-Lay Becomes a Partner
The international food giant PepsiCo Frito-Lay entered into a partnership with Elite, acquiring 50% of Elite Foods, Elite's salty snack company, for $6.7 million.
PepsiCo Becomes a Partner in the Hummus Revolution
Strauss signed a 50/50 partnership agreement with PepsiCo for the development, manufacture and marketing of refrigerated Dips & Spreads in the USA and Canada through the company, Sabra. The agreement has taken hummus, eggplants and Middle Eastern Dips & Spreads from Israel straight to the shelves of America's leading supermarket chains and into the homes of American consumers.
The World's Biggest and Most Advanced Dips & Spreads Plant is Established in Virginia
Strauss Group inaugurated Sabra's new Dips & Spreads plant, considered the biggest and most sophisticated of its kind in the world, with co-owner PepsiCo Frito-Lay. The plant, built with an investment of $70 million, is a green factory and is certified under the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) certification program and is considered the largest and most advanced hummus plant in the world.
New collaboration venture with PepsiCo
Strauss and PepsiCo signed another agreement to establish a new international company, which will manufacture and market fresh dips and spreads in leading international markets. The venture perpetuates the unique partnership between the two corporations, each of which holds a 50% stake in the jointly held company.
Establishment of a Center of Excellence in Virginia for R&D in the Hummus, Dips & Spreads Category
In a formal ceremony attended by the Governor of Virginia, Bob McDonnell, Strauss Group Chairperson Ofra Strauss, Sabra CEO Ronen Zohar and other senior executives from Sabra and PepsiCo, the cornerstone was laid for the Center of Excellence R&D facility in Virginia.
Inauguration of the R&D Center of Excellence in Virginia
The inauguration of the Center of Excellence R&D facility at the hummus manufacturing plant in Richmond, Virginia was attended by the managers of Sabra and Obela, senior executives from PepsiCo and representatives of Virginia local government. The COE will serve as one of the world's largest R&D facilities for Dips & Spreads and features a state of the art culinary center, research laboratory, ideation space, a pilot plant and hands-on research modules. The Center will work in conjunction with universities and research institutes with the aim of enabling the company to lead international development and innovation in the category and improve all processes related to the company's products – from the quality of agricultural produce through food engineering to product packaging and handling.
Sabra and Obela merge their corporate center activities
Obela acquires the Netherlands company, Florentin
PepsiCo Strauss Fresh Dips & Spreads International (Obela), owned by Strauss Group, reported the acquisition of 100% of the share capital of the Dutch company Florentin, which is engaged in the development and manufacture of organic products including hummus, falafel, spreads and pita bread, and markets its products in Western Europe, particularly in the Netherlands, Germany and France. The company employs a staff of forty and operates a production facility in the Netherlands. The acquisition of Florentin marks the expansion of the Strauss and PepsiCo joint venture in the dips and spreads business into Western Europe.