PepsiCo and Coca-Cola both in talks to acquire minority stake in Chobani

Soft drink giants PepsiCo and Coca-Cola are said to be holding separate negotiations to acquire a minority interest in US-based Chobani LLC. A deal, if it materialises would take the value of the Greek yogurt-maker to as much $3bn, including debt.

The talks also demonstrate how soft drink giants are diversifying their product portfolio following low sales of carbonated beverages, as consumers are shifting to health-based drinks and foods, reported Reuters.

Chobani is looking at selling a minority interest, including warrants owned by private investment firm TPG Capital, which represent between 10% and 20% of the yogurt maker’s equity based on the financial performance, the news agency reported.

The investment will help the yogurt-maker to bolster its supply chain, distribution, and manufacturing operations of its products, such as Flip.

Besides these two firms, Chobani is said to be holding talks with other companys.

Established in 2005 by Hamdi Ulukaya, Chobani is headquartered in New Berlin, New York.

It is considered to be a leading Greek yogurt brand in the US. Last year, TPG Capital LP lent the firm $750m to help it finance a turnaround.

Pepsi and Coca-Cola both already operate in the dairy segment. Three years ago, Pepsi began selling yogurt following a joint-venture with German dairy firm Theo Müller, while Coca-Cola started a US-wide distribution of FairLife milk, which has been created through a joint-venture with Select Milk Producers.