On Friday, Greek yogurt brand Chobani said that it acquired La Colombe for $900 million. Chobani financed the acquisition through a newly issued $550 million term loan, cash on hand, and the exchange of Keurig Dr Pepper's minority equity stake in La Colombe into Chobani equity.
La Colombe currently serves consumers across multiple channels, including retail, cafes, foodservice, and direct-to-consumer. The ready-to-drink coffee company owns its entire supply chain, from conscious bean sourcing and roasting to product creation, noted Chobani.
"At a time where the industry has faced challenges to grow sales, Chobani 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," said Chobani founder and CEO Hamdi Ulukaya, in a statement. "We've already made an investment in the coffee category with our creamers and are excited about bringing La Colombe into the Chobani family, and offering the delicious, high-quality cold brew and ready-to-drink craftmanship of La Colombe to a next generation of consumers.”
La Colombe will continue to operate as an independent brand that is a part of Chobani. This approach allows for collaboration and knowledge sharing between the two companies while preserving the brand’s identity, according to Chobani.
"La Colombe is a unique brand and well positioned to continue its strong growth trajectory, including upside as its ready-to-drink line expands availability through our Company-owned DSD network and with premium K-Cup pods now in the market," said Keurig Dr. Pepper chairman and CEO Bob Gamgort, in a statement. "Both as a strategic partner and a minority shareholder, we are excited by the path ahead."
La Colombe is a growing player in the U.S. ready-to-drink coffee category, and its offering will complement Chobani's core yogurt portfolio and food innovations, including oat milk and creamer, added Chobani. La Colombe's ready-to-drink line has grown over three times in the last five years and is positioned for accelerated growth.
Under Chobani ownership, La Colombe will benefit from Chobani’s retail execution, marketing, and cold chain capabilities to grow its multi-serve offering. Through a distribution agreement with Keurig Dr Pepper, La Colombe will also expand the reach of its single-serve product line and be able to grow its underdeveloped convenience retail channel.
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