Food & Beverage
PepsiCo's Acquisition of Sabra and Obela: A Game-Changer in the Dips Market
2024-11-28
PepsiCo, Inc. has made a significant move by reaching an agreement to acquire the remaining 50 per cent interest in Sabra Dipping Company, LLC (Sabra) and PepsiCo-Strauss Fresh Dips & Spreads International GmbH (Obela). This acquisition will make PepsiCo the sole owner of both companies, which are renowned for their Sabra and Obela products. Sabra and Obela were initially formed as 50/50 joint ventures between PepsiCo and the Strauss Group to handle the manufacturing, distribution, and sales of refrigerated dips and spreads.

Expanding PepsiCo's Food Portfolio

The Sabra joint venture is based in New York and operates in the US and Canada, while the Obela joint venture is based in Geneva and serves Australia, New Zealand, and Mexico. PepsiCo has been actively focusing on the fresh dips category for over 15 years. In 2008 and 2012, respectively, they formed Sabra and Obela as 50/50 joint ventures with the Strauss Group. Sabra has emerged as a leading hummus brand in the US, with nearly $400MM in retail sales. This acquisition will allow PepsiCo to continue to transform its portfolio and drive accelerated innovation. The company aims to develop more products that meet the growing demand for positive choices from North American consumers.Steven Williams, CEO of PepsiCo Foods North America, stated, "As we evolve our food portfolio and offer people more choices for various occasions, our goal is to fulfill the increasing demand for positive choices and on-the-go options. Nutritious, simple foods like refrigerated dips and spreads are a space we have always wanted to expand in the US and Canada. We are grateful for our long and successful partnership with the Strauss Group and are excited about the next chapter for the Sabra and Obela brands, as well as the PepsiCo food portfolio."

The Acquisition Timeline and Conditions

The transactions are subject to customary closing conditions and are expected to close by the end of 2024. The additional terms of the acquisitions have not been disclosed. This acquisition marks a significant milestone for PepsiCo, as it solidifies its position in the dips market and expands its product offerings. With the sole ownership of Sabra and Obela, PepsiCo can now leverage their resources and expertise to drive further growth and innovation in the category.The acquisition of Sabra and Obela will not only enhance PepsiCo's product portfolio but also provide consumers with more options and choices. It aligns with PepsiCo's strategy of meeting the evolving needs and preferences of consumers. By combining the strengths of PepsiCo and the Strauss Group, the company can create new and exciting dips and spreads that will appeal to a wider audience.

The Impact on the Dips Market

This acquisition is likely to have a significant impact on the dips market. PepsiCo's extensive distribution network and marketing capabilities will enable Sabra and Obela to reach a wider customer base. The company can invest in marketing and promotional activities to increase brand awareness and drive sales. Additionally, PepsiCo's research and development capabilities will allow them to continue to innovate and introduce new flavors and products to the market. This will keep Sabra and Obela at the forefront of the dips industry and give them a competitive edge.The acquisition also represents a strategic move by PepsiCo to diversify its product portfolio and reduce its reliance on traditional beverage products. By entering the dips market, PepsiCo can tap into a new revenue stream and expand its business beyond beverages. This diversification will help the company weather market fluctuations and ensure long-term growth.

The Future of Sabra and Obela

Under PepsiCo's ownership, Sabra and Obela will have access to the company's global resources and expertise. PepsiCo can provide them with additional marketing support, distribution channels, and product development capabilities. This will enable Sabra and Obela to continue to grow and expand their market share. The company can also leverage PepsiCo's innovation platform to introduce new and unique dips and spreads that will meet the changing tastes and preferences of consumers.With PepsiCo's backing, Sabra and Obela are well-positioned to become even more successful in the global dips market. The acquisition is a win-win situation for both PepsiCo and the Strauss Group, as it allows them to capitalize on their respective strengths and create value for shareholders.
University of New South Wales Chemists Patent New Battery Component Utilising Food-Based Acids
2024-11-28
A team of researchers from the University of New South Wales has achieved a significant breakthrough by patenting a new battery component. This innovation utilizes food-based acids sourced from sherbet and winemaking. By doing so, they have opened up an ideal opportunity for certain producers to generate a new revenue stream while also contributing to the reduction of organic food waste that ends up in Australian landfills.

Revolutionizing Batteries and Reducing Food Waste

Minimizing Environmental Impact

The single-layer pouch cell, currently being optimized, resembles a smaller version of those used in mobile phones. This new prototype not only improves energy storage capacity but also minimizes environmental impacts in its materials and processing. It makes lithium-ion batteries more efficient, affordable, and sustainable. The electrode developed by the team can significantly increase the energy storage capability by replacing graphite with compounds derived from food acids like tartaric acid (naturally found in many fruits) and malic acid (found in some fruits and wine extracts). Food acids are readily available, typically less aggressive, and contain the necessary functional groups or chemical characteristics. This battery component could potentially use food acids from food waste streams, reducing their environmental and economic impact. Its processing uses water instead of toxic solvents, thus improving the status quo across multiple areas.Food waste costs the Australian economy around $36.6 billion each year and accounts for about three per cent of the nation’s annual greenhouse gas emissions. By using waste produced at scale for battery components, the industry can diversify their inputs while addressing both environmental and sustainability concerns.

Identifying the Best Combinations

The need for batteries has been on the rise in recent years as we continue to develop renewable energy infrastructure to combat climate challenges. The same is true for new methods of reducing food waste, such as finding a secondary use for waste products and helping reinforce a more circular economy. UNSW’s novel approach was driven by a PhD candidate examining reported inconsistencies in food acid performance in the lab. They realized that the acid actually reacts with the metal surface of the battery component. It’s a fundamental chemical reaction - a metal plus an acid gives you a salt and hydrogen. And it’s that salt that gives the improved performance.The research team worked with a range of food acids and metals to identify the most affordable and materially accessible combination. They experimented to understand what was happening, designing reactions to maximize performance and characterizing the resulting compounds and their performance. As a result, they have the versatility to change the combination to suit different supply streams and desired performance. For example, while Australia has a lot of iron, in other regions, manganese or zinc might be more accessible and can be used as the metal component.

Upscaling and Diversifying

The team is currently upscaling the technology, increasing production quantities, and transitioning from small coin cell to larger pouch cell capability. They are also looking at diverting diverse bio-waste streams from landfill to use them as sources to formulate new electrode microstructures. For example, they have worked with Prof. Veena Sahajwalla to pyrolyse coffee grounds to use them as a carbon source to make anodes within lithium-sulphur batteries. As of 2024, more than eight million tons of waste coffee grounds enter landfill globally every year.Meanwhile, stakeholders within the food and beverage industry have been exploring other ways to turn waste by-products into viable secondary products. COPAR, a sustainable packaging solutions company, aims to eliminate single-use plastics by utilizing wheat straw. The food and beverage industry is focusing on sustainability, particularly in packaging, and with increasing bans on single-use plastics across the country, many industries are seeking alternative solutions. COPAR is addressing this need by developing fibre-based packaging and presents a great example of how waste by-products can provide viable opportunities to increase profit. The company will launch its first Australian factory in Bathurst, NSW. While fibre-based packaging is not new, using wheat straw for this purpose will be a first in Australia.“The idea is to re-purpose farmers’ agricultural waste by turning it into compostable packaging, which means it will naturally degrade in the environment with no microplastics. It is truly a circular product,” said Colin Farrell, director of business development for COPAR. “Circular economy is the hardest part to achieve, and understanding it properly is critical.” Farrell said the company came across the wheat straw idea when they were tasked with helping a start-up source compostable packaging. “From that basis, we started to investigate that area and found the University of Newcastle has expertise in compostable plastics and packaging. So, we started our research and development there, which then led to establishing our commercial and technology partners.” Demonstrating, as with the news out of UNSW, that collaboration with university-level researchers is having an ongoing positive impact on the food and beverage industry. Other examples include bioplastics, woven fabrics made from orange fibre, and fermenting corn waste to create a sugar-free sweetener. These examples are just a sampling of how the food and beverage manufacturing industry is converting waste products into viable secondary market applications.
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The “PoWer” Project: Decarbonizing Heavy-Duty and Off-Road Machinery
2024-11-28
Efforts to achieve decarbonization in the realm of heavy-duty and off-road machinery have witnessed a significant surge. Purem by Eberspaecher's collaboration with leading manufacturers and institutions in Germany on the “PoWer” project is at the forefront of this movement. This initiative, which is backed by the Federal Ministry for Economic Affairs and Climate Protection, focuses on exploring the potential of hydrogen engines for construction and agricultural applications.

Unlock the Potential of Hydrogen Engines in Off-Road Mobility

Collaboration and Partnerships

Purem by Eberspaecher's partnership with major industry players and academic institutions is a key aspect of the “PoWer” project. MAHLE, DEUTZ, Claas, Liebherr, Nagel, Umicore, Castrol, NGK, the Karlsruhe Institute of Technology (KIT), the German Aerospace Center (DLR), and the Technical University of Braunschweig are all part of this consortium. Together, they are working towards advancing the potential of hydrogen engines in off-road applications through vehicle concept studies and systemic fleet and infrastructure evaluations.This collaboration brings together decades of experience in various fields. For instance, Purem by Eberspaecher has decades of expertise in exhaust technology, which can be leveraged to ensure the efficient operation of hydrogen engines. Additionally, the involvement of academic institutions like KIT and DLR provides access to cutting-edge research and development capabilities.

Advantages of Hydrogen Engines

Hydrogen engines are highly praised for their efficiency and low rates of untreated emissions. In heavy-duty and off-road applications, where emissions have a significant impact on the environment, hydrogen engines offer a viable solution. As Avinash Mutharja, Executive Vice President Technology & Innovation at Purem by Eberspaecher, stated, “We see the use of hydrogen engines as a great opportunity for clean mobility in heavy-duty applications – for example, in the off-road sector.”The use of hydrogen engines not only helps in reducing emissions but also offers other benefits. Hydrogen is a clean energy source that can be produced from renewable sources, making it a sustainable option for the future. Moreover, hydrogen engines have the potential to provide higher power output compared to traditional engines, which is crucial for heavy-duty applications.

Future Prospects

The “PoWer” project holds great promise for the future of decarbonizing heavy-duty and off-road machinery. Through the collective efforts of the consortium, significant advancements are expected in vehicle concepts, fleet management, and infrastructure development. This will pave the way for the wider adoption of hydrogen engines in off-road applications and contribute to the overall goal of reducing carbon emissions.However, there are still challenges that need to be addressed. One of the main challenges is the development of an efficient hydrogen infrastructure. Hydrogen needs to be stored, transported, and refueled in a safe and reliable manner. Additionally, the cost of hydrogen production and storage needs to be reduced to make hydrogen engines more economically viable.Despite these challenges, the “PoWer” project is a significant step forward in the decarbonization of heavy-duty and off-road machinery. It showcases the potential of hydrogen engines and highlights the importance of collaboration between industry and academia in driving innovation and sustainability.To continue reading this article and explore more about the “PoWer” project and decarbonization efforts, please login, register for free, or consider subscribing to gasworld.
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