Led By Sabra Dipping Company, Hummus Sales Soar In First Three Quarters 2009

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Americans Reach for More Hummus as Sabra Stays on Trends with Consumer Desires

We made a strategic, if bold, decision not to hide a great product during tough times

Sabra Dipping Company (http://www.sabra.com) is leading one of the fastest growing food categories this year. Hummus sales overall are up more than 45% for Sabra, and 15% for the category from the same period last year. In what has become an interesting case study for growing business during a tough economy, Sabra took an aggressive stance in 2009, breaking ground on a new factory, launching additional flavors and product lines, embarking upon a nationwide tour, an advertising campaign and multiple marketing and pr initiatives.
"We made a strategic, if bold, decision not to hide a great product during tough times," said Rodrigo Troni, CMO of the Company. "As a matter of fact, we saw tremendous opportunity. We knew there would be an appetite for delicious, authentic, healthy and versatile foods at home this year and rather than scaling back, we focused on highly strategic marketing opportunities. At the same time, we continued to deliver on our promise of innovation and introduced new flavors and product lines based on feedback and interaction with customers."

Sabra Dipping Company, owned by PepsiCo and Strauss Group, saw a more than double-digit market share increase in the last 12 months, with 40% share as of September 2009. The company, knowing its core products are on trend and timely, embarked on several key initiatives, including breaking ground on a 110,000 square foot factory in Richmond, VA to handle ever-expanding demand for the products.

In June, Sabra introduced several new hummus flavors, most notably Spinach & Artichoke, a blend of Sabra's Classic Hummus with fresh spinach and artichokes, which has become a top seller quickly. Also in June, the company began to test a line of fresh, all natural yogurt dips. These low fat dips without preservatives feature flavors such as Sautéed Onion, Spicy Pepper and Tzatziki, and are made with fresh yogurt, making them low fat, creamy and delicious. They've been extremely well received and the company has plans for increased distribution in the upcoming months.

Also in 2009, Sabra toured North America with a Mediterranean Village, inviting consumers to enjoy free samples of hummus with fresh toppings in an experiential environment. Throughout the 11 city tour, Sabra distributed close to 600,000 samples and introduced the Sabra brand to millions of consumers.

Sabra's advertising campaign, developed by Strawberry Frog, launched in March 2009 in major US cities. More recently, the Company began airing spots in the Metro region and New England on ABC, NBC, FOX, CBS, WB, and several independent cable stations. Sales in markets where the commercial airs have seen a 15 - 20% lift above already fast-paced growth.
Sabra's products are regularly featured as favorites in daily newspapers and magazines such as Every Day with Rachael Ray, Fitness, Health and Family Circle and seen in TV segments about holiday and every day entertaining on all major networks. Engaged with consumers on blogs and Twitter, Sabra has welcomed the opportunity to connect directly with enthusiastic customers.
"As we approach the end of the year we see consumers' appetite for great tasting, authentic, fresh foods not only continues to grow as an alternative to eating out or processed bland foods, but also as they start becoming a replacement for traditional spreads and snacks. We want consumers to keep telling us how we can continue to provide them healthy alternatives in terms of products, sizes and occasions. We will make sure we listen to them, because that is our number one job," said Troni.

About Sabra Dipping Company, LLC
Sabra Dipping Company, LLC. of Astoria, New York, makes a wide and outstandingly delicious range of refrigerated dips and spreads. Using fresh herbs and spices, authentic recipes and healthy vegetables, the dips and spreads are richer, smoother and tastier. All of the products are beautifully presented, certified kosher and vegetarian and available across the nation. With over 50% growth in the past 52 weeks, Sabra is leading its category according to recent IRI reports. Sabra's rapid growth and category leadership sparked interest from food industry leaders PepsiCo and the Strauss Group, which own equal shares of the company in a joint venture. Visit http://www.sabra.com.

Frito-Lay North America
Frito-Lay North America is the $12 billion convenient foods business unit of PepsiCo (NYSE: PEP), which is headquartered in Purchase, NY. In addition to Frito-Lay, PepsiCo business units include Pepsi-Cola, Quaker Foods, Gatorade and Tropicana. Learn more about Frito-Lay at the corporate Web site, fritolay.com , the Snack Chat blog, snacks.com and on Twitter at twitter.com/fritolay. PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales. Our main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - also make hundreds of other nourishing, tasty foods and drinks that bring joy to our consumers in over 200 countries. With more than $43 billion in 2008 revenues, PepsiCo employs 198,000 people who are united by our unique commitment to sustainable growth, called Performance with Purpose. By dedicating ourselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide. For more information, please visit pepsico.com.


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