Greek-yoghurt maker Chobani said it had bought ready-to-drink coffee maker La Colombe for $900 million (€824.6 million) to expand its beverage business.
Chobani said it bought the Philadelphia-based company through a combination of newly issued $550 million (€503.9 million) term loan, cash on hand and in exchange of Keurig Dr Pepper's minority equity stake in the coffee brewer.
Chobani founder and chief executive officer, Hamdi Ulukaya said, “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.”
Last year, Chobani withdrew its plans for an initial public offering in the United States after having delayed its listing plans earlier. The company has been expanding its product categories by adding products such as coffee creamers.
La Colombe will continue to operate as an independent brand, the companies said.
The company offers its products across multiple channels, including retail, cafes, foodservice, and direct-to-consumer.
“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 chairperson and CEO Bob Gamgort. “Both as a strategic partner and a minority shareholder, we are excited by the path ahead."
The acquisition will see La Colombe gain access to extensive retail execution, marketing and cold chain capabilities and expand its multi-serve offering.
In addition, it will also expand the reach of its single-serve product line and focus on underdeveloped channels, like convenience retail.
News by Reuters, additional reporting by ESM.