New York State-based packaged yogurt giant Chobani has acquired Philadelphia-born coffee company La Colombe for $900 million.
The deal follows nearly a decade’s worth of interest in the coffee company from Chobani Founder and CEO Hamdi Ulukaya, who became the majority owner and primary investor in La Colombe in 2015 with an approximately $60 million investment.
According to an announcement from Chobani this morning, the $900 million sale will involve a newly issued $550 million loan, cash on hand and the exchange of Keurig Dr Pepper‘s (KDP) minority equity stake in La Colombe into Chobani equity.
Packaged beverage giant and Keurig owner Keurig Dr Pepper invested $300 million La Colombe earlier this year, representing a 33% stake. That deal included a distribution agreement, particularly for La Colombe’s popular ready-to-drink (RTD) products.
According to a Fast Company story today, Keurig Dr Pepper’s six-month distribution agreement with La Colombe will remain in place through the Chobani deal.
“We’ve already made an investment in the coffee category with our creamers and are excited about bringing La Colombe into the Chobani family, and offering the delicious, high-quality cold brew and ready-to-drink craftmanship of La Colombe to a next generation of consumers, powered by a strong distribution partner in KDP,” Ulukaya said in a press release this morning.
Founded in 1994 by Todd Carmichael and JP Iberti in Philadelphia under the name La Colombe Torrefaction, La Colombe grew to become one of the most prominent “third wave” coffee brands in the 2000s and 2010s, supplying high-end restaurants and independent cafes with coffees, maintenance and training.
The company has more recently expanded through its own branded retail growth, alongside growth in grocery channels through its RTD products, including its influential canned latte line.
La Colombe currently operates 32 cafes in the markets of Philadelphia, New York, Chicago, Boston, Los Angeles, Austin (Texas) and Washington, D.C.
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Nick Brown Nick Brown is the editor of Daily Coffee News by Roast Magazine.
