Chobani Cashes In on Protein-Maxxing Boom

To paraphrase the ancient Greek aphorism: Nothing in excess … except maybe protein.

On Tuesday, Greek yogurt giant Chobani said it’s investing $1.2 billion in an Allentown, Pennsylvania, production facility to launch a high-protein milk product by the summer of next year. It’s just the latest sign that the company is continuing to hit its stride.

High Protein, Higher Potential

Catering to everyone from gym bros to GLP-1 weight-loss users, the so-called “protein-maxxing” market — which has already delivered products including protein-packed cereal, pasta and even soda — knows no bounds. Chobani is no stranger to it. Its sales volume has increased 20% a year in the past three years, the privately held company said in a statement on Tuesday. Sales are reportedly on track to hit $4.6 billion this year.

The milk will have about half the sugar and double the protein of typical milk, Chobani said. The new plant, meanwhile, was billed by Governor Josh Shapiro on Tuesday as “the largest private-sector investment in the history of Pennsylvania’s agriculture industry” and one that will strengthen the state’s dairy industry. Chobani says the protein milk will be the foundation of a new line of dairy products. It already makes a protein-packed yogurt drink, and dabbled in, but ultimately abandoned, a high-protein milk a couple of years ago.

As Coca-Cola has proven with its high-growth protein-packed Fairlife Milk label, the time is right for another try, amid a massive expansion in production capacity overall:

• Last year, Chobani announced investments of about $1 billion in a dairy processing plant in Rome, New York, and said Tuesday it plans to invest $4 billion overall in its US manufacturing network.
• That includes expansions to a plant in Twin Falls, Idaho, as well as a plant for coffee brand La Colombe in Michigan. Chobani said it also plans to spend $800 million to buy back an equity share in the company owned by Keurig Dr Pepper.

The End of Oat Street: The protein boom is not victimless: Chobani said it will be discontinuing its oat milk product to make room for more dairy products. At long last, the alt-milk wars may be coming to a close.