Chobani LLC, a next generation food and beverage company based in New Berlin, New York, has acquired La Colombe for $900 million.
Chobani financed the acquisition through the combination of 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 serves consumers across multiple channels, including retail, cafes, foodservice and direct-to-consumer. The brand is the only ready-to-drink coffee company fully owning its supply chain.
“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 Hamdi Ulukaya, founder and CEO.
“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, powered by a strong distribution partner in KDP.”
As part of Chobani, La Colombe will continue to operate as an independent brand. This approach allows for collaboration and knowledge sharing between the two companies while preserving the identity that La Colombe is known for.
“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 KDP Chairman and CEO Bob Gamgort.
“Both as a strategic partner and a minority shareholder, we are excited by the path ahead.”
Under Chobani’s ownership, La Colombe will benefit from its retail execution, marketing and cold chain capabilities to grow its multi-serve offering. Through its sales and distribution agreement with KDP, La Colombe will also expand the reach of its single-serve product line and have access to grow underdeveloped channels like convenience retail.
Read more dairy news from The Shelby Report.
