Sabra Dipping Co., the dips venture run by PepsiCo and Israeli food group Strauss, is to set up an R&D facility in the US.
The company is spending US$28m on a facility in Chesterfield County in Virginia.
Strauss decided to run its US dips business Sabra in tandem with PepsiCo in 2008. Sabra is the top-selling brand of hummus in the US and is the leader in the chilled dips and spreads category.
The announcement of the new R&D facility comes a week after PepsiCo and Strauss announced plans to launch a range of dips and spreads for the Mexican market under the Obela brand.
Show the press release
Governor McDonnell Announces Sabra Dipping Company Expansion in Chesterfield County
- Company to invest a total of $28 million to expand manufacturing operation and establish Center of Excellence R&D facility -
-Project a successful result of Governor's November 2011 Marketing Mission-
RICHMOND - Governor Bob McDonnell today announced that Sabra Dipping Company, the country's leading hummus manufacturer, will expand its Silver LEED certified food manufacturing operation in Chesterfield County and establish a Center of Excellence research and development facility on the company's 49 acre campus in the Ruffin Mill Industrial Park.
Sabra will immediately begin a significant expansion of its hummus production capacity, enabling the addition of two new lines, a packaging automation system, water waste systems and related plant improvements. The factory expansion will increase the Chesterfield plant's production capacity by 50 percent in response to the continued increased demand for Sabra hummus.
The Center of Excellence will establish best practices on all aspects of culinary, food science, production, engineering, packaging, supply chain and product delivery, and also lead groundbreaking agricultural initiatives with local universities, including research on chickpeas, fruits and vegetables, to increase the use of local resources. The 20,000-square-foot facility will feature a state of the art culinary center, ideation space, a pilot plant, offices, and research centers. Construction will begin in the second quarter of 2012.
These and associated investments will total $28 million dollars and create an estimated 90 new jobs over the next few years.
Governor McDonnell met with Strauss Group officials in Israel during his November 2011 marketing mission.
Speaking about today's announcement, Governor McDonnell said, "As the Sabra brand continues to grow, this significant expansion is testament to the success Sabra has found in Chesterfield County since choosing Virginia in 2008 for its state-of-the-art food manufacturing plant. In addition, the new Center of Excellence represents innumerable opportunities for food science and research. Strengthening relationships with existing businesses are of utmost importance, and I am pleased to have had the opportunity to work closely with company officials on this tremendous project."
"Sabra hummus has become a household name, and we are proud of the company's success and demand for increased production in Chesterfield County," said Jim Cheng, Virginia Secretary of Commerce and Trade. "It is impressive that the plant has been in operation just two years and with this project Sabra will increase production capacity by 50 percent, making a significant investment and creating nearly 100 new jobs."
"The Sabra Center of Excellence will be home to experts in areas of food technology, agriculture, nutrition, manufacturing and distribution and is the next important step in the outstanding growth of our company," said Ronen Zohar, CEO of Sabra. "The fact that we are building it in Virginia is a testament to our belief in the people, the community and the resources available here. This research and development center will push the envelope and enable us continue to expand and define the possibilities in the dips and spreads category in terms of innovation, taste, health and beyond."
The Virginia Economic Development Partnership worked with Chesterfield County and the Greater Richmond Partnership to secure the project for Virginia. Governor McDonnell approved a $250,000 grant from the Governor's Opportunity Fund to assist Chesterfield County with the project. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company's recruitment, training and retraining activities.
Dan Gecker, Chairman of the Chesterfield Board of Supervisors, said, "Chesterfield is proud to have Sabra Dipping Company as one of our leading corporate citizens. This increased investment and growth will result in new and exciting high quality products and, most especially, jobs. Thank you, Sabra, for your confidence in and commitment to Chesterfield County."
Sabra Dipping Company, LLC is a leader in the refrigerated dips and spreads category and producer of America's top-selling hummus. Sabra's award-winning hummus, available in more than a dozen flavors and a wide range of authentic, healthy and vegetable based dips and spreads can be found nationwide in club stores, supermarkets, specialty retailers and through food service. Sabra operates a Silver LEED certified factory in Virginia, and in 2011 received an A-Classification from the British Retail Consortium (BRC) audit board for food safety for its California plant.
Sabra Dipping Company was formed as a U.S./Canadian joint venture between Strauss Group and PepsiCo. The Sabra joint venture draws on both Frito-Lay, a division of PepsiCo, and Strauss Group's expertise to continue building this growing business.
About Strauss Group
Strauss Group (TASE: STRS), Israel's second-largest food & beverage company, is an international corporation which comprised of five core business units: Strauss Israel (the second largest food and beverage company in Israel), Strauss Coffee, Strauss Water, Strauss-PepsiCo fresh dips and spreads, and chocolate chain Max Brenner.
Strauss Group has established strategic partnerships with leading multinationals companies including: PepsiCo and Frito-Lay, Danone, Haier, Virgin and TPG Capital.
The company operates in 18 countries and employs 14,000 people globally. In 2011, had a net revenue of $2.2 billion in turnover with 48.8% generated by international activities.
