Dive Brief:
- The USDA has selected Chobani to supply Greek-style yogurt to a school systems in seven states in an expansion of a pilot program to revamp school lunch offerings.
- The pilot program will run for the entire school year, starting in September. The program is an expansion of successful four-month test in four states last year.
- Under the deal Chobani will supply schools in seven states: New York, Arizona, Idaho, California, Iowa, Illinois, and Mississippi.
Dive Insight:
The appearance of Greek yogurt in school lunches shouldn't surprise anyone. It's everywhere these days. But in this particular case, Chobani's success may have less to do with the appeal of Greek-style yogurt than with other factors.
First, Chobani simply priced its offer better. According to Dairy Reporter, Chobani offered a flat rate of $1.40 a pound for yogurt to any school in the program. That was a better price than offered by competing bidders Alpina, Origin, Commonwealth Dairy, or Upstate Farms.
Second, some credit must be given to the politicians who lobbied the USDA to put Greek yogurt in school lunches. The two Democratic senators from Chobani's home state of New York -- Charles Schumer and Kirsten Gillibrand -- joined with a Republican congressman, Richard Hanna of Barneveld, NY, to push USDA to serve the food to schoolchildren.