PepsiCo and Strauss Group Complete Formation of North American Joint Venture

Sabra Joint Venture Highlights Frito-Lay North America's Commitment to Fresh
Dips and Spreads and Expands Its Role in Providing Healthier Snack Options

PURCHASE, N.Y., March 31 /PRNewswire-FirstCall/ -- PepsiCo and Strauss
Group announced that the formation of a joint venture partnership to operate
Sabra, the top-selling and fastest-growing maker of hummus, has been
completed. Sabra had sales of $65 million in 2007. Last year, total U.S.
sales of hummus grew to $192 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 this growing
business. Sabra expands FLNA's role in providing healthier snack options and
aligns with the 'fresh' trend. PepsiCo's FLNA business unit and Strauss will
each own 50% of the business.
The joint venture will leverage Sabra, the number one brand of hummus in
the U.S. True to its Mediterranean heritage, Sabra's hummus is made with
healthier oils, such as soybean and canola oils, and has no trans fat or
cholesterol. Sabra products also include eggplant dips, babaganoush spreads,
and Mediterranean salsa available in individual and family packs. These
products, which have a strong presence in the Northeastern U.S. and Florida,
are currently distributed through a combination of independent sales brokers
and distributors and Sabra's own refrigerated direct-store-delivery system.
"Sabra's products are a natural complement to Frito-Lay's offerings,
particularly our Stacy's pita chips," said Al Carey, president and chief
executive officer of Frito-Lay North America. "We expect Sabra will continue
to see positive growth because the products are in line with consumer trends
like freshness and health and wellness."
"Through its experience and know-how in the development, manufacturing and
marketing of fresh food products, Strauss Group has been creating a new food
experience in the U.S. through the fresh dips and spreads business," said Erez
Vigodman, president and chief executive officer of Strauss Group. "The
partnership between Frito-Lay and Strauss will create a complementary set of
competencies and expertise that will allow Sabra to lead the fresh dip
category and offer consumers in North America a range of fresh dips that meets
their desire for healthier, fresh foods."
About Strauss Group
Strauss Group (TASE: STRS) is a fast-growing international food and
beverage company, with approximately 10,000 employees, that has achieved
double-digit growth for the fifth straight year. With a 70-year history of
excellence and innovation, Strauss offers superior quality brands, products
and services while meeting the latest consumer trends.
Strauss Group's business is comprised of the health and wellness division,
which primarily includes fresh foods, the fun and indulgence division, and the
coffee division. The Group has cultivated its coffee business extensively and
is among the top ten players in the world's coffee markets with operations in
11 countries, and is one of the largest corporations in the emerging markets
of Central and Eastern Europe and the second-largest in Brazil. The Group's
global fun and indulgence activities have focused around the development of a
unique line of chocolate bars under the Max Brenner brand. In North America,
the Group's health and wellness business is being led by Sabra. For more
information, please visit www.strauss-group.com.
About Frito-Lay North America
Frito-Lay, based in Plano, TX, is the $11 billion convenience food
division of PepsiCo.
About PepsiCo
PepsiCo (NYSE: PEP) is one of the world's largest food and beverage
companies, with 2007 annual revenues of more than $39 billion. The Company
employs approximately 185,000 people worldwide, and its products are sold in
approximately 200 countries. Its principal businesses include: Frito-Lay
snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and
Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1
billion or more each in annual retail sales. PepsiCo's commitment to
sustainable growth, defined as Performance with Purpose, is focused on
generating healthy financial returns while giving back to communities the
Company serves. This includes meeting consumer needs for a spectrum of
convenient foods and beverages, reducing the Company's impact on the
environment through water, energy and packaging initiatives, and supporting
its employees through a diverse and inclusive culture that recruits and
retains world-class talent. As a member of the Dow Jones Sustainability World
Index (DJSI World) and the Dow Jones Sustainability North America Index (DJSI
North America), PepsiCo is a recognized leader in sustainability. For more
information, please visit www.pepsico.com.
Cautionary Statement
This release contains statements concerning PepsiCo's expectations for
future performance. Any such forward-looking statements are inherently
speculative and are based on currently available information, operating plans
and projections about future events and trends. As such, they are subject to
numerous risks and uncertainties. These risks include the ability to achieve
business plans, successfully executing and managing the proposed acquisition
and the receipt of regulatory approvals. Actual results and performance may
be significantly different from expectations. Please see our filings with the
Securities and Exchange Commission, including our Annual Report on Form 10-K,
for a discussion of additional risks that may affect our performance.
SOURCE PepsiCo

Aurora Gonzalez, Frito-Lay, +1-972-334-3821, or Osnat Golan, Strauss Group,
+972-3-675-2281