La Colombe, the coffee roaster and retailer that got its start in Philly in 1994 was purchased on Friday for $900 million by Greek-yogurt maker Chobani.
The acquisition presents a “next chapter of growth” for the food company, CEO and founder Hamdi Ulukaya said in a press statement. Besides yogurt, Chobani also produces oat milk, probiotic drinks, and coffee creamers.
It’s the result of a long-brewing partnership; the roasters have been on Ulukaya’s radar as early as 2012, when they supplied coffee to Chobani’s first cafe, opened in New York’s SoHo district. He became an investor, and majority owner of the coffee company in 2015.
Founded by Todd Carmichael and JP Iberti, La Colombe launched its first location near Rittenhouse Square 29 years ago. It’s since moved its headquarters to Fishtown and expanded to 32 stores across Philadelphia, New York, Washington, D.C., Boston, Chicago, Austin, and Los Angeles. The company sets itself apart with a strong commitment to social and environmental causes, as well as its technical proficiency — in 2016 founder Carmichael claimed to have “invented the ability to create textured drinks in a can” he had specially designed; part of his stated plan for the company’s expansion.
The priorities are seemingly shared; Ulukaya reportedly informed Chobani’s investors in the past of the company’s ethos, “that we do well by doing good.” A third of the workforce consists of refugees and, in 2016, a program was launched granting employees a 10% stake in the company. He’s also spent the past several months, according to a Fast Company report, developing new latte cans with La Colombe, set to hit the market in March (the flavors will be the same, but the sugar lowered and the beverage texture enhanced)
This July, La Colombe received a $300 million investment from beverage behemoth Keurig Dr Pepper Inc., in part to begin producing single-serve coffee capsules, which debuted last week. The investment gave KDP a 33% ownership of La Colombe, making their products available through Keuring’s distribution channels along other brands like Snapple, Canada Dry, and Green Mountain Coffee Roasters. With Friday’s purchase, KDP’s stake in La Colombe will be transferred to Chobani.
The acquisition is Chobani’s first venture outside its own brand. The company got its start in 2005, and has since expanded with manufacturing facilities in New York, Idaho, and Australia. An intention to go public was announced last year but ultimately withdrawn due to market uncertainties. Since then, net sales have continued to surge, recently passing $2 billion, up from $1.4 billion in 2020.
Billy Penn reached out to La Colombe for comment, and will update accordingly.
