Dive Brief:
- Chobani is spending $567 million to expand its La Colombe coffee facility in Michigan amid a surge in demand for its popular ready-to-drink lattes.
- The multi-phase project will add 200,000 square feet of production space and nearly 340 new jobs to the Norton Shores location, doubling the plant’s existing workforce.
- The Michigan expansion, which provides a significant runway for the coffee brand to facilitate growth, comes as the broader ready-to-drink category continues to expand.
Dive Insight:
The expansion of the La Colombe plant comes after Chobani announced two major manufacturing investments totaling $1.7 billion in 2025.
The company committed to spending $500 million to expand production by 50% at its Twin Falls, Idaho, facility, and another $1.2 billion to build a dairy processing plant in upstate New York, the largest plant investment in Chobani's history.
While the broader food and beverage space continues to struggle, Chobani’s aggressive expansion efforts show its yogurts, creamers and coffees are resonating with consumers willing to spend more for nutrient-dense products that are lower-sugar but still tasty and accessible.
Chobani noted that La Colombe’s ready-to-drink platform has grown 32% year-over-year, with growth unlikely to abate anytime soon.
During an interview last year, John Frost, Chobani’s chief customer officer, said La Colombe has thrived in a category where most of its ready-to-drink competitors use a lot of sugar and artificial ingredients. He also said La Colombe is a good source of protein and has, on average, about 50% less sugar than the other items in the category.
Chobani acquired La Colombe for $900 million in 2023, the first acquisition for the yogurt company and a big step in broadening its food and beverage portfolio. Last year, it purchased plant-based food maker Daily Harvest, bringing it into ready-to-make meals and frozen foods for the first time.
Chobani said in 2025 that it is focused on growing La Colombe’s ready-to-drink, multi-serve and beans operations. The RTD coffee segment is expected to increase 4.8% this year to $8.31 billion and is forecast to reach $11 billion by 2031, according to Mordor Intelligence.
Last fall, Chobani said it raised $650 million from unnamed “industry thought leaders,” which the Greek yogurt giant plans to invest in growing production and supporting innovation.
