Dive Brief:
Dive Insight:
Chobani has spent much of the last four years using into the Chobani name to extend its reach into other categories, including oatmilk, cold-brew coffee, probiotic beverages and coffee creamers.
While Chobani is unlikely to ever abandon that strategy, 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. La Colombe currently serves consumers across multiple channels, including retail, cafes, foodservice and direct-to-consumer.
Chobani could even market the brands together, encouraging shoppers to have a ready-to-drink La Colombe with their cup of yogurt.
Despite challenges impacting companies in the food space, Chobani appears to be managing through much of the industry’s current difficulties. 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.
“We have never been stronger or better positioned to chart our next chapter of growth,” Ulukaya said “We’ve already made an investment in the coffee category with our creamers and are excited about bringing La Colombe into the Chobani family.” Ulukaya is no stranger to La Colombe. He is the majority owner of the brand.
In 2023, the market for ready-to-drink coffee worldwide was projected at $33.4 billion, according to data from Statista. The category is forecast to post a compound annual growth rate of 5.79% through 2027. Building a deep presence in this popular ready-to-drink coffee category could only help to further accelerate Chobani’s growth.
Chobani noted that 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. Colombe’s ready-to-drink line has grown more than 3x in the last five years and is “positioned for accelerated growth.” Chobani added that La Colombe will benefit from its extensive retail execution, marketing and cold chain capabilities to grow its multi-serve offering.
An equally valuable part of the deal is keeping Keuirg Dr Pepper in the fold. The beverage giant, which recently debuted La Colombe K-cups for its Keurig platform, has a strong distribution network for its sodas, waters and other drinks. La Colombe will benefit by tapping into that relationship to expand its presence in convenience stores and other retail establishments.
Under Chobani’s ownership, and with help from Keuirg Dr Pepper, 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 already on the market, including Coca-Cola’s Costa Coffee and PepsiCo’s Starbucks.
