PepsiCo, Coca-Cola in talks to invest in Greek yogurt maker Chobani
13 Oct 2015
US beverage giants PepsiCo Inc and Coca-Cola Co are in talks to invest in Greek yogurt maker Chobani, in a deal that would value the biggest yogurt maker in the US at as much $3 billion, including debt, Reuters today reported, citing people familiar with the matter.
The move would come a year after private equity firm TPG Capital invested $750 million to help fund its growth (See: Greek yogurt maker Chobani receives $750-mn funding from TPG Capital).
Under that deal TPG received warrants that allowed it to obtain a 35-per cent equity stake in Chobani and two board seats.
Chobani is looking to sell a minority stake, including warrants owned by TPG Capital that account for between 10 per cent and 20 per cent of the yogurt maker's equity depending on its financial performance, the report said.
Chobani is seeking a strategic investor to help expand its supply chain, distribution, manufacturing base and geographic footprint for its popular yogurts like Flip, which combine yogurt with flavors such as peanut butter and coffee, the report added.
Chobani, founded by Turkish immigrant Hamdi Ulukaya in 2005, makes Greek-type strained yogurt known as "Turkish" yogurt outside the US, and is the top-selling brand of yogurt in the country.
Chobani expanded in 2012 by opening one of the world's largest yogurt-processing plants in Idaho. The one million square-foot facility cost $450 million and employs 300 people.
The company, which competes with brands from Danone SA and General Mills, holds around 19 per cent share of the $7.4 billion US yogurt market, and has revenues of $1 billion.
Chobani recently launched new products, such as a line of organic yogurt, yogurt containing steel-cut oats and desserts.
