• by Erik Oster , December 17, 2023

Chobani spent nearly a billion dollars to purchase the ready-to-drink coffee brand many of its consumers may already drink alongside their morning yogurt.

The food and beverage company primarily known for its Greek yogurt acquired coffee company La Colombe for $900 million, explaining in a statement that it financed the deal through a combination of cash on hand, a newly issued $550 million loan, and the exchange of Keurig Dr Pepper's (KDP) minority equity stake in La Colombe into equity in Chobani.

La Colombe operates across channels including retail, cafes, foodservice, and ready-to-drink -- the last of which seems a primary motivator in the acquisition. The company touts itself as the only brand in the growing category that owns its own supply “from conscious bean sourcing and premium roasting.” 

Chobani  explained in a statement that it views La Colombe’s RTD coffee line, which has grown three times over the past five years, as “highly complementary” both to its core yogurt brand portfolio and more recent innovations like its oat milk and creamer products, also citing citing “cultural alignment and shared values” between the two companies.

Chobani Founder and CEO Hamdi Ulukaya noted the company’s preexisting investment in the coffee category through its creamers, while touting La Colombe’s “delicious, high-quality cold brew and ready-to-drink craftmanship” and integration “powered by a strong distribution partner in KDP," according to a press release.

Going forward, La Colombe will continue to operate as an independent brand, an approach Chobani said "allows for collaboration and knowledge sharing between the two companies," with La Colombe benefiting from Chobani’s retail reach, marketing and cold chain capabilities. The sales and distribution agreement with KDP will allow it to “expand the reach of its single-serve product line and have access to grow underdeveloped channels like convenience retail,”  according to Chobani.