Israel’s Strauss Group is in talks with PepsiCo over possible co-operation in North America.

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The discussions centre on Sabra Salads, the second-largest maker of Mediterranean dips and spreads in the US.


Strauss owns 51% of Sabra Salads; the other 49% stake is held by Sabra president Yehuda Pearl through his company Blue & White Food Products Corp.


Strauss has a four-year option to buy out Pearl; under the deal discussed with PepsiCo, Strauss would exercise this option and then sell half the shares on to the US food and beverage giant.


Last year, Strauss doubled Sabra Salads’ market share. The company generated NIS170m (US$41.2m) in sales in 2006, and a 20% share of the market, in terms of value.

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