Chobani rejects bid from PepsiCo for stake in company
Greek yogurt manufacturer Chobani has rejected an offer from global beverage company PepsiCo which sought a stake in the company. Chobani was approached by several parties in 2015, ultimately opting to work with Goldman Sachs to mull over the potential sale.
According to Reuters, the deal was called off in part because of PepsiCo’s terms. The beverage giant sought a majority stake in the company while Chobani was looking to sell a minority stake—reportedly about 20 percent.
Coca-Cola was also reported to be interested in the company, though it abandoned discussions to invest in the company last October citing Chobani was not the best fit for its products portfolio. Organic food producer WhiteWave Foods was also interested in a deal.
While some food industry experts predict that Greek yogurt sales will begin to fade in coming years, it's difficult to overlook the role Greek varieties have played in resuscitating the overall US yogurt market, says market analyst Packaged Facts. According to Packaged Facts, one major factor is responsible for yogurt's dollar sales increase: Greek yogurt. The Greek yogurt subcategory has gone from being practically nonexistent more than half a dozen years ago – it was only about 1 percent of overall sales as recently as 2007, the year Chobani shipped its first products – to being the most important force shaping the industry. Greek yogurt accounts for more than half the industry's dollar sales, although Packaged Facts' estimates indicate growth has indeed begun to slow from its torrid pace of previous years.