Chobani, PepsiCo Partner on Distribution Pilot Test in Northeast
Chobani has teamed with PepsiCo to further its ambitions in the refrigerated space through a pilot distribution program that will take the yogurt maker’s products into convenience retailers, colleges and universities across the Northeast starting this month.
The partnership, first reported by Bloomberg and confirmed by Chobani, will allow both brands to test the waters before a potential further expansion. Pepsi will lend its chilled distribution infrastructure and DSD network to help grow Chobani’s widening range of yogurt and non-yogurt products, while Chobani will help the global food and beverage brand make progress on its goal of offering more better-for-you options.
Chobani did not provide details on the complete product mix and number of retail partners included in the pilot program, but did confirm that it will include the subline Chobani Complete, which includes both drinkable and spoonable yogurts with elevated protein content.
“We’ve always been about making better food for more people, ensuring delicious and nutritious food is accessible for all,” said Hamdi Ulukaya, founder and CEO of Chobani. “Teaming up with PepsiCo accelerates Chobani’s mission, helping us reach more corners of the country and giving our fans new ways to buy our simply-crafted and wholesome products.”
The deal comes amidst Chobani’s ongoing portfolio expansion efforts, which in the past 12 months alone has taken it into categories such as cold brew coffee, dairy and plant-based creamers, probiotic elixirs and protein drinks. Outside of beverage, innovation has also come in the form of kids’ products and more yogurts. The growing product range has allowed the company to grow its audience and meet the specific needs of different age groups with a calibrated message of nutrition and gut health, along with high-quality dairy and plant-based credentials.
Chobani’s manufacturing muscle, in the form of its Twin Falls, Idaho production facility, has given it the flexibility to expand quickly and with limited costs. The introduction of cold brew coffee SKUs with dairy creamer or oat milk was a direct result of the company having an abundance of cream, a byproduct of making yogurt, and oat milk on hand to use, according to chief innovation officer Niel Sandfort.
Meanwhile, Pepsi has continued to recalibrate its portfolio to prioritize better-for-you products in recent years through M&A (CytoSport, Health Warrior, SodaStream) and internal brand development with the likes of LIFE WTR, bubly and Hilo Life, the first brand to emerge from its incubator The Hive. The company also launched a joint venture with Beyond Meat earlier this year to create, produce and distribute food and beverage items made from plant-based protein. At the time, PepsiCo said that deal would allow the company to continue its mission of creating a more sustainable food system and offering consumers more health and wellness focused products.
Chobani and PepsiCo were previously linked on a potential acquisition deal back in 2016, though the former ultimately declined the proposition.
