The purchase of La Colombe Coffee Roasters by Chobani
Chobani, a maker of Greek yogurt, is expanding into the coffee market by paying $900 million to acquire La Colombe Coffee Roasters. La Colombe produces and distributes coffee applications through a range of distribution channels, such as foodservice, retail, and direct-to-consumer.
According to Chobani, La Colombe will carry on as a stand-alone brand.
“Chobani has delivered double-digit, volume-led sales growth and considerable margin expansion at a time when the industry has faced challenges to grow sales,” stated Chobani’s founder and CEO, Hamdi Ulukaya. “As we embark on our next phase of expansion, we are more prepared than ever. With our creamers, we have already invested in the coffee market. We are thrilled to welcome La Colombe into the Chobani family and introduce the delectable, premium cold brew and ready-to-drink craftsmanship of La Colombe to a new generation of customers, supported by a reliable distribution partner in KDP.
Keurig Dr Pepper (KDP) paid $300 million in July to purchase a 33 percent share in La Colombe. The investment was a part of a larger relationship between the two businesses, under which KDP will produce and market La Colombe-branded K-cup coffee pods in Canada and the US, as well as distribute La Colombe ready-to-drink coffees.
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According to the firm, Chobani paid for the acquisition using cash, a $500 million loan, and the conversion of KDP’s minority stock share in La Colombe into Chobani equity.
According to Chobani, La Colombe will be able to expand its multi-serve offering and expand into channels including convenience retail thanks to the acquisition from Chobani and the cooperation with KDP. Furthermore, the acquisition is expected to improve La Colombe’s procurement procedures, generate cost efficiencies, and raise the company’s overall operational effectiveness.