- Coca-Cola is no longer in the race for a Chobani stake, according to reports. Both Coca-Cola and PepsiCo were discussing investments in Chobani, according to Reuters sources. The company wants an investor to invigorate its supply chain, distribution, and geographic presence for its more popular yogurts.
- The company is considering a minority stake sale, which includes firm TPG Capital LP warrants that make up between 10% to 20% of Chobani's equity.
- Chobani wants the deal to value the company at $3 billion, debt included, according to Reuters.
The challenging market for soda — with U.S. consumption declining for the tenth straight year — means diversifying products is critical. With Coca-Cola bowing out, the move would be smart for PepsiCo to pursue.
Both Coca-Cola and PepsiCo have been involved in dairy, with Pepsi working on a joint project with German dairy company Theo Müller and Coca-Cola's Fairlife product.
However, Reuters notes Pepsi's snack portfolio is wider than Coca-Cola's. Coca-Cola has taken minority stakes in brands like Keurig Green Mountain, Monster Beverage, and Suja Life.