According to reports, The Coca-Cola Company and PepsiCo are competing to make an investment in US-based Greek yogurt maker Chobani. If successful, such a deal would value Chobani at $3bn, including debt.
According to Reuters, Chobani has been working with Goldman Sachs to investigate the sale of a minority stake to a business that can help improve production and distribution.
In 2014, Chobani suffered liquidity issues, before an investment from private-equity firm TPG Capital LP. The sale of any minority stake would include warrants owned by TPG that account for between 10% and 20% of the yogurt maker’s equity, depending on its financial performance.
The apparent negotiations demonstrate how the soft drink companies are pushing to diversify beyond the steadily slowing carbonated drinks sector and towards the faster growing healthy lifestyle segment, particularly in the United States.
Beyond the two major soft drinks companies, reports suggest that other businesses are also considering making an investment. Follow FoodBev for updates.
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