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Coca-Cola No Longer in Talks to Invest in Chobani: Reports

The Coca-Cola CompanyKO has pulled out of the negotiations regarding an investment in Greek yogurt maker, Chobani, according to latest reports.

On Monday, it was reported that PepsiCo, Inc. PEP and Coca-Cola are fighting to buy a stake in Chobani. Coca-Cola believes that the yogurt maker will not be a strategic fit for its portfolio, reported Reuters citing sources familiar with the matter.

Chobani was founded by its current CEO, Hamdi Ulukaya, in 2005. The company uses only natural ingredients to make Greek yogurts. The company's first Greek yogurt cup was launched in 2007.

The investment could reportedly value Chobani at as much as $3 billion. According to reports, Chobani is looking to sell a minority stake to expand its supply chain and geographical reach of its new products. Other companies apart from Pepsi and Coca-Cola are also reportedly in talks with Chobani regarding an investment. According to Reuters, one of the companies is organic food company The WhiteWave Foods Company WWAV .

Both Coca-Cola and Pepsi have been investing in emerging consumer categories to diversify their product portfolios beyond sodas that are witnessing declining sales of late.

In 2015, Coca-Cola increased its stake in specialty coffee retailer, Keurig Green Mountain, to 16% and bought 16.7% stake in energy drink maker, Monster Beverage Corporation MNST .

With Keurig Green Mountain, Coca-Cola has an innovative partnership under which the former will exclusively make and sell Coca-Cola branded single-serve pods for use on its Keurig Cold at-home beverage system. The deal opens up an exciting new packaging format for Coca-Cola's brands.

Under the deal with Monster, Coca-Cola swapped its global energy drink business with the former's non-energy drink business. These strategic investments will help Coca-Cola adapt to the changing consumer trends while accelerating innovation.

In addition, Coca-Cola has a 50% equity interest in Aujan Industries Company, one of the largest independent beverage companies in the Middle East.

Pepsi is also exploring newer categories like dairy with the Wimm-Bill-Dann acquisition in Russia, a joint venture (JV) with Almarai in the Middle East and the Muller Quaker Dairy JV in the U.S.

Coca-Cola has a Zacks Rank #4 (Sell).

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COCA COLA CO (KO): Free Stock Analysis Report

PEPSICO INC (PEP): Free Stock Analysis Report

MONSTER BEVERAG (MNST): Free Stock Analysis Report

WHITEWAVE FOODS (WWAV): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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