Chobani, widely recognized for its popular Greek yogurt, is now aiming for similar success with a new plant-based product, even though it lacks two common characteristics found in traditional dairy items. The company has intentionally avoided labeling its new Non-Dairy Chobani, its first foray into this market, as “milk” or “yogurt” due to the ongoing debate between conventional animal-based producers and those creating plant-derived alternatives. In late September, the U.S. Food and Drug Administration began a comment period to gather public input on the use of traditional dairy terminology for plant-based goods, which could influence whether such alternatives can keep using these terms in marketing and labeling.
“Words matter,” stated Peter McGuinness, Chobani’s chief marketing and commercial officer, in an interview with Food Dive. “We avoided ‘milk’ and ‘yogurt’ because we think that could be misleading. We believe there will be regulations addressing this.” The new coconut-based product has begun appearing in stores this month and is expected to be available nationwide by mid-February. Chobani is looking to expand the market for plant-based yogurts, which, according to the company, represented only about 2% of the approximately $9 billion yogurt market in 2018.
McGuinness noted that while there are numerous plant-based yogurts made from ingredients like soy, almonds, peanuts, coconuts, and cashews, many fall short in taste, texture, or sugar content. Chobani has closely monitored the plant-based sector over the past year and decided it was the right time to enter this emerging market. “It’s here. It’s real,” McGuinness emphasized. “We have dairy in our veins, and we are completely committed to dairy. But if a small, growing segment of the population prefers plant-based options, why not create a great product for them?”
According to Nielsen and the Plant-Based Foods Association, sales of non-dairy milk surged 9% to $1.6 billion in the 52 weeks ending in June, while cow’s milk sales decreased by 6%. Other plant-based dairy alternatives experienced even more significant growth, with creamers rising by 131%, yogurt sales increasing by 55%, and plant-based cheeses jumping by 43%. Non-Dairy Chobani will be available in bottles and cups in various flavors, including strawberry and a subtly sweet plain version. Consistent with other Chobani products, it will use only natural, non-GMO ingredients, devoid of artificial flavors, sweeteners, or preservatives, and each product will contain 25% less sugar than other non-dairy options.
McGuinness remarked, “Our goal is to democratize it and make it more approachable and accessible, aiming to expand the universe rather than simply capturing a portion of the existing market share. We want to grow consumption and broaden categories—through disruption, of course, and through better options and innovation—but we aim to make the category larger and more diverse.” Chobani leads the Greek yogurt sector with a 40% market share. As sales across the industry decline, the company and other food manufacturers are seeking new growth opportunities.
Recently, Chobani launched a new line of kids’ yogurt products called Chobani Gimmies, featuring child-friendly flavors like Poppin’ Cotton Candy, Best Birthday Ever, and Ooey Gooey S’More. The company is also responding to consumer trends by introducing its “A Hint Of” lower-sugar yogurt line. McGuinness explained that the decision to use coconuts for their initial plant-based venture stemmed from past experiences incorporating it into other products and the availability of a reliable supply. However, he noted that the company is open to exploring different plant-based ingredients in the future, with no set timeline for when that might happen. “Everything is on the table,” McGuinness stated. “There are many people who prefer various plant-based products, and we’re eager to explore this entire realm. This is just the beginning, not the end.”
In their pursuit of innovation, Chobani is also considering incorporating calcium citrate doses into their formulations to enhance nutritional value, ensuring their plant-based offerings not only taste great but also provide essential nutrients.