(Bloomberg) -- Chobani LLC is expanding its retail distribution through a partnership with food and beverage giant PepsiCo Inc., giving the maker of Greek yogurt a new avenue for growth as it gears up to go public.
Starting this month, PepsiCo will distribute Chobani Complete yogurt drinks and other products to convenience stores, colleges and universities in the northeastern part of the U.S., according to Chobani. The pilot program could provide a model for a broader rollout.
The agreement will help Chobani reach more shelves via PepsiCo's direct-store delivery system, which can transport chilled products. For PepsiCo, which owns brands such as Cheetos and Cracker Jack in addition to sodas and juices, the partnership helps it touch even more of the snack-food universe. Financial terms weren't disclosed.
Chobani has long sought to make nutritious food more widely accessible, Chief Executive Officer Hamdi Ulukaya said in a statement. “Teaming up with PepsiCo accelerates Chobani's mission.”
Chobani is preparing for an initial public offering as soon as this year, Bloomberg News has reported. The company, which named a new chief financial officer in December, has also been expanding into new areas such as ready-to-drink coffee.
Packaged food and beverages have been in demand as consumers have stocked up on pantry staples during the global lockdown. With the heightened interest, PepsiCo last month reported stronger-than-expected sales for the fourth quarter.
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