Chobani to launch cold coffee drinks in a breakthrough beyond yogurt

Four new Chobani coffees

Chobani

In 2019, Chobani began to branch out into oat milk and coffee creams while trying to expand its reputation beyond exclusive Greek yogurt.

It is starting 2021 with another bold category entry: coffee.

Starting in January, Chobani customers will be able to purchase ready-to-drink coffee drinks from US retailers. Cold fermented beverages will be available black or flavored with the company’s sweet cream, vanilla cream or oat milk. The coffee itself is made with 100% Arabica beans.

The product launch comes when more Americans are drinking their coffee at home, rather than at the office or in a coffee shop. The ready-to-drink coffee category saw retail sales rise 17% to $ 1.6 billion in the 52 weeks ending October 31, according to Nielsen data. Keurig Dr Pepper is among those who are gaining from the trend, with net sales of its coffee systems growing 3% to $ 1.1 billion in the third quarter.

But Chobani’s coffee line has been in development since the successful launch of its coffee creams, which helped teach the company about coffee drinkers.

“We were starting with the cream products, and everything went so well that we said that we will continue on our path, and that was the next natural step for us,” said Chobani Chief Innovation Officer Niel Sandfort in an interview.

Sandfort said the company hopes to bring its expertise in yogurt flavors to its new categories, including coffee.

Chobani Coffee has a suggested retail price of $ 4.49 per 32-ounce multiservice package and contains about 85 milligrams of caffeine per serving, which is the standard for coffee. The bottles are made with Tetra Top packaging and are easily recyclable.

“Chobani’s type of business model, in essence, in terms of food development, is to own the manufacturing, so our costs are reasonable and therefore we can deliver these high-quality ingredients, but not as expensive as you think, ”said Sandfort.

When it launched its coffee creams, Chobani focused on the use of real cream or oat milk, instead of the hydrogenated vegetable oils normally used in this type of product. Sandfort said that as a result, the line is attracting new customers who have not used coffee cream before. And now the company expects Chobani Coffee to bring the same incremental traffic to the ready-to-drink category.

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