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Chobani declines PepsiCo’s offer for majority stake in company

DBR Staff Writer Published 08 February 2016

Beverage company PepsiCo’s offer to acquire a majority stake in Greek yogurt maker Chobani has been rejected by the latter.

yogurt

Last year, Chobani has appointed Goldman Sachs Group to look for an investor in exchange for a minority stake.

The yogurt market rejected the PepsiCo's offer as it wanted to sell only minority stake, while the beverage giant was interested in a majority stake, reported Reuters.

The yogurt maker was cited by Reuters as saying that its "independence was a key asset to the company and the brand".

Chobani had floated the idea of selling minority stake in order to raise funds to bolster its production and distribution as well as to venture into new segments such as dips.

Chobani spokesman Michael Gonda was quoted by Dow Jones News as saying: "We took our time with this process, conducted thorough due diligence and in the end, given our strong performance, we decided to fund our new growth initiatives ourselves while keeping our independence, which is important to us.

While both PepsiCo and Coca-Cola were seeking to invest in Chobani, Coca-Cola quit the process last October as Chobani did not align well with its existing portfolio, reported Reuters.

Chobani s majorly owned by Hamdi Ulukaya and had seen some growth issues in 2013 as it began its expansion strategy in the US.

In 2015, the company charted a revival plan following a bail out by private-equity investors, who insisted on drastic cut costs.


Image: Greek yogurt maker rejects PepsiCo's offer. Photo: Courtesy of y Danilo Rizzuti.