When people are asked what are their favorite Greek yogurt, more times than, not Chobani comes to mind. The Greek style yogurt is one of the most popular in America, according to a study by the research firm Mintel.
Mintel discovered that Greek style yogurt makes up more than 40% of the United States yogurt market which is worth $7.4 billion. Chobani has become the Greek yogurt of choice. After a few weeks of deliberations Chobani’s board of directors including, the founder Handi Ulukaya decided on their next move to better the company.
Chobani is looking to sell a minority stake of the company. The stake is about 20% and is valued at $2.5 billion. As of now Chabani is working with The Bank of America (NYSE: BAC) to help sell the stake in the company. Currently the bank and Chobani have reached out to privately owned equity firms to see what they have to offer.
Chobani started producing from an old Kraft food (NASDAQ: KRFT) yogurt plant in New York and 9 years later Chobani is top selling Greek yogurt in the United States. Chobani sales grew more than 30% in 2013 to over $1 billion. The company believes it would have done better but due to a voluntary recall sales were lower than anticipated. Customers complained about the yogurt tasting fizzy and also reported illnesses. While little has been revealed about the deal, there is no doubt that the interest is there and with time details will surely emerge.