Just over a month after releasing a slate of new innovations across several product categories, Chobani’s platform expansion continued today as the Greek yogurt maker revealed a new line of ready-to-drink cold brew coffees.
Chobani Coffee enters stores nationwide today, where it will be available in 32 oz. multi-serve Tetra Top cartons in four varieties: Cold Brew with Sweet Cream, Cold Brew with Vanilla, Cold Brew with Oatmilk and Cold Brew Pure Black. Each contains about 85mg of caffeine per serving and has a suggested retail price of $4.49.
Over the past year, the Norwich, New York-based company has rolled out a steady stream of beverage innovations, including oat milk, probiotic drinks and creamers. Last month, the company introduced Chobani Probiotics, a line of drinkable yogurts and yogurt cups with added gut health benefits, a zero-sugar oat milk and two new creamer flavors.
The launch of Chobani Coffee represents the company deeping its investment in refrigerated products that “have a relationship with coffee” and which can highlight its expertise in dairy and plant-based dairy alternatives, according to Neil Sandfort, chief innovation officer at Chobani.
“It’s been this little path we’ve been on, and as we go people have been accepting us, so we just keep going,” he said.
The line was also appealing because it can utilize two ingredients Chobani has plenty of at its Twin Falls, Idaho production facility plant in Twin Falls, Idaho: cream (a byproduct of making yogurt) and oat milk.
“I can’t think of many places that have fresh cream on hand, have oat milk on hand, and in the same factory can bring this all together with coffee,” he said. “We can really crank up the quality because we’re holding all of these parts (versus co-packing). Of course there’s efficiency in that, so we can make this really high quality product accessible.”
The coffee itself is made from single origin 100% Arabica beans and is described in press materials as a “cold-press brew.” Coffee roaster and retailer La Colombe, of which Chobani owner/founder/CEO Hamdi Ulukaya is the majority owner, uses similar language on its RTD products. Chobani, however, did not disclose the source of its coffee.
According to Nielsen data, dollar sales in the refrigerated RTD coffee category have grown 30% over the 52-week period ended on October 26, 2020. PepsiCo’s North American Coffee Partnership with Starbucks led the way with 47.1% sales growth ($141.8 million), followed by Danone (+46.3% to $106.2 million).
Relative to its competitors in coffee, Sandfort said Chobani’s proposition will be about “simplicity and quality.”
“Like most spaces in the supermarket, it’s a category that is condensed down and is oligopolistic and there’s typically two or three major players that have been there for a while with the lion’s share of the market,” he said. “That’s a familiar model, and typically what that means is there’s an opportunity for brands like us to come in and reconcile some of the disconnect what they are offering and what the consumer thinks they are buying.”