Dive Brief:
- Chobani is withdrawing its plans for an IPO, the Greek yogurt maker said in a regulatory filing on Friday.
- A spokesperson told Food Dive the company decided to delay a public listing “given the current market conditions,” and added, “Our focus remains on strong execution and driving profitable growth, and we continue to be excited about the future of Chobani.”
- The once-hot IPO market has cooled substantially in recent months amid surging interest rates, a possible recession and volatility in the stock market. Chobani filed to go public in 2021.
Dive Insight:
Chobani’s decision to pull its IPO by no means closes the door on a listing once the broader macroeconomic environment improves. But for now, it buys the company time to continue expanding beyond its roots in yogurt, where it holds a roughly 20% market share.
Chobani initially was looking at an IPO valuation of more than $10 billion, Reuters reported in July 2021.
In a filing to go public, the company noted its revenue rose 5.2% to $1.4 billion in 2020, while net losses tripled to $58.7 million as it invested money back into new product offerings. Since 2019, Chobani has introduced oat milk, cold-brew coffee, probiotic beverages and coffee creamers. It made the unusual decision in April to end production of its Chobani Ultra-Filtered Milk that it launched in February.
Chobani put its IPO listing on hold in March after then-President and COO Peter McGuinness left to run Impossible Foods and other top executives simultaneously departed. Chobani hired its former president and COO Kevin Burns to replace McGuinness.
