Chobani and La Colombe manufacture a range of compatible coffee products, including oat milk and coffee creamer.
Chobani paid $900 million for Philadelphia-based La Colombe Coffee Roasters, a ready-to-drink specialty coffee roaster with close ties to the Greek-yogurt maker.
In a Dec. 15 press release, Chobani writes, "Entry into the high-growth RTD coffee category furthers Chobani’s evolution into a diversified next-generation food & beverage company.”
The deal closed with a $550 million loan and $44 million in cash, will exchange equity in La Colombe held by Keurig Dr Pepper (KDP) for Chobani equity. KDP purchased a 33% stake in La Colombe for$300 million in July 2023.
La Colombe, founded in 1994, will continue to operate as an independent brand. According to the release, La Colombe's RTD line has grown over 3x in the last five years and is positioned for accelerated growth in the $5 billion US RTD coffee category. The company also operates 32 cafés across Philadelphia, New York, Chicago, Boston, Los Angeles, Austin, and Washington, D.C, and is considered one of the best-quality roasters in America. Foodservice sales to hotels, retailers, and restaurants, and packaged sales of K-Cups.
Chobani Founder and Chief Executive Officer Hamdi Ulukaya writes, "At a time when 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."
In March, Chobani and La Colombe co-hosted a booth at the Expo West tradeshow that accelerated discussions about the acquisition, Ulukaya said. In 2021, Chobani trialed a line of RTD coffees in four flavors but later halted production. The company’s branded oat milk is featured at Tim Hortons cafes across Canada.
KDP Chairman and CEO Bob Gamgort, who described his company's role as a strategic partner and minority shareholder, called La Colombe "a unique brand, 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."
Chobani plans to unlock La Colombe’s “true sales potential” while streamlining procurement practices and delivering meaningful cost synergies. “In addition, given cultural alignment and shared values, La Colombe will play a key role in the company's ongoing journey to doing good and making the world a healthier place,” reads the release.