Chobani began branching out into oat milk and coffee creamers in 2019 as it tried to expand its reputation beyond its signature Greek yogurt.
Now, it's kicking off 2021 with another bold category entry: coffee.
Starting in January, Chobani customers will be able to buy ready-to-drink coffee beverages in U.S. retailers. The cold brew drinks will be available black or flavored with the company's sweet creamer, vanilla creamer or oat milk. The coffee itself is made with 100% Arabica beans.
The product launch comes as more Americans are drinking their coffee at home rather than at the office or in a coffee shop. The ready-to-drink coffee category has seen retail sales surge 17% to $1.6 billion in the 52 weeks ended Oct. 31, according to Nielsen data. Keurig Dr Pepper is among those winning from trend, with its coffee systems' net sales rising 3% to $1.1 billion in its third quarter.
Chobani's coffee line has been in the works since the successful launch of its coffee creamers, which helped teach the company about coffee drinkers.
"We were starting with the creamer products, and it's gone so well that we said let's continue on our path, and this was the next, natural step for us," Chobani chief innovation officer Niel Sandfort said in an interview.
Sandfort said the company is looking forward to bringing its expertise coming up with yogurt flavors into its new categories, including coffee.
Chobani Coffee has a suggested retail price of $4.49 per 32-ounce multiserve pack and contains about 85 milligrams of caffeine per serving, which is standard for coffee. The bottles are made with Tetra Top cartons, making them easily recycled.
"Chobani's kind of business model, at its core, in terms of food development, is owning the manufacturing so our costs are reasonable, and therefore we can deliver these high-quality ingredients but not be as expensive as you think," Sandfort said.
When it launched its coffee creamers, Chobani focused on its use of real cream or oat milk rather than the hydrogenated vegetable oils usually used in this type of product. Sandfort said that as a result, the line is pulling in new customers who didn't use a coffee creamer before. Now, the company is hoping that Chobani Coffee brings in the same incremental traffic to the ready-to-drink category.
