Chobani Buys Coffee Roaster La Colombe for $900M

Chobani, the Greek-style yogurt giant, is buying coffee roaster La Colombe for $900 million. Keuirg Dr Pepper, which bought a 33% stake in La Colombe in July, will exchange its stake in La Colombe into Chobani equity. The purchase gives Chobani a deep presence in the fast-growing ready-to-drink coffee category and allows the dairy firm to build on its efforts to become a more diversified food and beverage company.

Chobani has spent the last four years using the Chobani name to extend its reach into other categories, including oatmilk, cold-brew coffee, probiotic beverages, and coffee creamers. The move to buy La Colombe will enable the 16-year-old New York company to add another well-known brand to the mix that can serve as a platform for growth. The decision to bring the two brands under the same corporate entity also could lead to some natural synergies, such as the use of Chobani creamers in La Colombe coffees and the sale of Chobani’s yogurts or use of its oatmilks in La Colombe’s brick-and-mortar locations.

Chobani founder and CEO Hamdi Ulukaya said in a statement that his company has delivered double-digit, volume-led sales growth and “considerable” margin expansion. Building a deep presence in this popular ready-to-drink coffee category could help accelerate Chobani’s growth. La Colombe is a growing player in the $5 billion U.S. ready-to-drink category, and its offering will prove “highly complementary” to Chobani.

Keuirg Dr Pepper is also included in the deal, as the beverage giant has a strong distribution network for its sodas, waters, and other drinks. Under Chobani’s ownership, La Colombe will undoubtedly accelerate its growth faster than it would have been able to on its own and be better positioned to compete against other established ready-to-drink products on the market.

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