Chobani seeks to diversify its offer: buys the coffee company La Colombe

Chobani, a company dedicated to the production of innovative food and beverages, has confirmed the acquisition of La Colombe, a ready-to-drink coffee company, for a total amount of US$900 million.

Chobani used a combination of methods to finance the acquisition, including a newly issued $550 million term loan, cash on hand and an exchange of Keurig Dr Pepper’s minority interest in La Colombe for equity in Chobani.

The famous coffee brand called La Colombe is recognized for its wide variety of exclusive blends and for offering high quality single origin coffees. In addition, it has stood out for being the first to launch the world’s first texturized canned cold canned latte in the market.

Currently, the brand offers its products through various channels, such as retail stores, cafeterias and food services. In addition, they also sell directly to the consumer. This particular brand is the only company that produces ready-to-drink (“RTD”) coffee and also controls its entire supply chain, from consciously acquiring beans to roasting them with high quality and creating exceptional experiences for its loyal customers.

Despite the challenges the industry has faced in increasing sales, Chobani has achieved significant growth in this area through increased sales volume and improved profit margins. Founder and CEO Hamdi Ulukaya said the company is at its best and is poised for further growth. In addition, they have invested in the coffee category with their new creamers and are excited to include La Colombe in their family, thus offering a high quality, ready-to-drink cold brew to a new generation of consumers thanks to their major distribution partner KDP.

“La Colombe is a unique brand and is well positioned to continue its strong growth trajectory, including upside as its ready-to-drink beverage line expands availability through our company-owned DSD network and with premium K-Cup® capsules now on the market,” said KDP President and CEO Bob Gamgort. “As a strategic partner and minority shareholder, we are excited about the road ahead of us,” the executive added.

After joining Chobani, La Colombe will remain an independent brand. This strategy allows them to collaborate and share experiences between the two companies, while maintaining the identity and innovation that characterizes La Colombe.

La Colombe is known for its growing share of the RTD (Ready To Drink) coffee market in the United States, which is currently worth US$5 billion. Its offering will perfectly complement Chobani’s core portfolio, which includes innovative products such as oat milk and cream. Over the past five years, La Colombe’s RTD line has experienced significant growth and remains positioned for rapid expansion. Now owned by Chobani, La Colombe will be able to leverage the company’s extensive retail execution, marketing and cold chain capabilities to increase its sales. In addition, thanks to the recent agreement with KDP for sales and distribution, La Colombe will have access to new channels and underdeveloped markets such as convenience retail.

In addition to seeking to increase La Colombe’s sales, Chobani has plans to improve the way it acquires the company, as well as to take advantage of cost synergies and improve its overall operating performance. Because of their shared values and similar culture, La Colombe is expected to play an important role in Chobani’s efforts to promote wellness and make the world healthier.