Chobani Commits $1.2bn to Expand Dairy, Coffee and Food Production
Chobani, best known in the United States for Greek yoghurt, is preparing a new phase centred on a manufacturing complex in Allentown, Pennsylvania. The company says the 1.5m-square-foot site will be acquired and expanded through an investment of $1.2bn. The facility is near hundreds of dairy farms and is expected to support production across dairy, coffee and convenient prepared foods.
The company has described additional manufacturing capacity and greater operational flexibility as part of its plans. Allentown also provides access to industrial workers and large markets. Its location, together with the proximity of Chobani’s supply and production network, is part of the company’s stated rationale for selecting the site.
Milk from farms in Pennsylvania and Michigan is expected to supply products made by both Chobani and La Colombe. A company spokesman said the two states have hundreds of farms capable of providing the required milk. Lehigh County in Pennsylvania and Muskegon County in Michigan were also cited for their industrial workforce, infrastructure and community resources. Allentown is geographically close to La Colombe’s factory in Michigan, according to the company.
Coffee is a longer-term area of expansion for Chobani. The company estimates the global coffee category at $100bn and says La Colombe’s ready-to-drink coffee business has been growing by more than 30% a year. The brand has particular strength among Generation Z and millennials, groups that the company says are increasingly choosing cold coffee. La Colombe introduced its Draft Latte through cafés more than a decade ago before moving the product into retail.
Chobani has expanded beyond yoghurt through liquid coffee creamers and iced coffee, with the latter added through its acquisition of La Colombe. The company has also tested limited-edition “flavour drops”, with each flavour available for one month. Its acquisition of Daily Harvest, a business focused on nutritious prepared meals, added another category to its portfolio.
Demand for the company’s established products has been supported by continued interest in high-protein diets and wider use of GLP-1 medicines for weight loss, particularly in yoghurt. Chobani says consumers continue to seek natural products with high nutrient and protein content, as well as formats that can be consumed conveniently during the day.
The coffee market includes competition from Nestlé and Danone. Danone is suing Chobani, alleging that the company copied the appearance of its SToK product. Chobani says its innovation pipeline covers dairy, coffee and natural ready-to-eat foods, with an emphasis on nutrition, ingredient quality, taste and simple formats.
