Chobani’s product innovations in yogurt and RTD coffee markets address consumer preferences for high protein, natural ingredients and functional benefits.
Aligning with consumer preferences for more protein, Chobani featured its line of high-protein yogurt cups and yogurt drinks, which contain naturally occurring whey protein, during Natural Products Expo West earlier this month. Initially branded as “Chobani Complete,” the company rebranded the line last year to emphasize the 20- and 30-grams of protein, explained John Frost, chief customer officer, Chobani.
Although “Chobani Complete” reflected the company’s claims on providing “complete nutrition that has roughly 70% of the B12 you need within a given day,” along with calcium, potassium and probiotics, consumer feedback led it to spotlight the protein content, size options and a zero added-sugar callout, Frost said.
“We started to listen to consumers more, and they wanted more offerings than just the 20 grams of protein and five different flavors. They wanted a higher concentration of protein. So, we came up with a 30-gram version” and a 15-gram, portion-controlled option “to build out the family” of products, he added.
Similarly, Chobani developed its 20-gram Greek yogurt line, which is produced by spinning the milk in the centrifuge “for longer and more intensely” to yield a “higher concentration of proteins,” Frost explained.
La Colombe’s protein boost
Continuing with the protein trend, Chobani’s La Colombe Draft Lattes feature 6-8 grams of protein and 5 grams of fiber and half the sugar of its competitors, Frost noted.
The RTD coffee market is shifting towards more functional beverages, with increasing demand for products that combine caffeine with nutritional benefits like protein, Frost explained. Consumers also are experimenting with adding protein to their coffee, a trend that is influencing product development in the category, he added.
The lattes are produced using an enzymatic manufacturing process that turns lactic acid and sugar into fiber, creating a healthier option in the RTD coffee space, he said.
Taking nods from consumer preferences at La Colombe’s brick and mortar cafes, the frothy RTD coffees offer the “café experience in a can” thanks to nitrous oxide to give a draft coffee texture and sweet taste from milk, Frost added.
Consumer behavior in La Colombe’s café’s also inspired limited-time offer launches and seasonal flavors like s’mores and peppermint, which have performed well in terms of repeat purchases and incremental sales, he said.
Retail collaborations and expanded production reinforce the company’s foothold
The company continues to work closely with retailers to enhance product visibility, especially in big-box retailers, Frost said.
From personalized marketing strategies and using digital platforms to retail media networks, the company aims to increase consumer awareness and encourage trials at the point of purchase, he added.
“In terms of marketing, we invest a lot of dollars. We want to get our dollars right to consumers in a very personalized way. If you try this product, it’s going to be so good you’re going to come back and repeat. So rather than having more mass media type of approach to marketing, what we try to do is get very specific and retailers have tools where we can get very specific to households and consumers,” Frost explained, adding that depending on the retailer and market, repeat rates are between 50-70%.
Additionally, the company announced the construction of its $500 million expansion of its Twin Falls, Idaho facility last week. The 500,000 square foot facility, for a total of 1.6 million square feet, is expected to increase production by 50% with 24 new production lines.
Further, the larger facility will employ more than 1,200 people with earnings reaching nearly 12% more than the regional average, per the company. In total, Chobani reported investing over $1.3 billion in the Twin Falls area towards the facility and community.