Edited by: TJVNews.com
Seems like yogurt lovers are setting their sights on one particular brand that apparently tickles their fancy and arouses their taste buds. According to a CNBC report, the Chobani yogurt and milk producer has seen a considerable spike in its annual revenue. The report indicated that from 2019 to 2020, their sales increased by 5.2% to $1.4 billion. The down side to that is that Chobani’s net loss has more than tripled during that time, reaching $58.7 million, as it invested back into its business, according to the CNBC report. There is however a light at the end of the proverbial tunnel. CNBC reported that during the nine months ended Sept. 25, Chobani’s net sales growth has outpaced its widening net loss, indicating that its investments may be paying off.
Now that yogurt aficionados have been leaning towards the Chobani brand, the company has now decided to apply to be a publicly traded stock on the Nasdaq Exchange under the symbol “CHO.” CNBC reported that in July, the company confidentially filed for an IPO, and Reuters reported its valuation could exceed $10 billion.
Chobani is the latest food company to join many others like them in the public markets, according to the CNBC report. The WSJ reported that Chobani is riding a wave of consumer and investor enthusiasm for socially responsible and health-conscious companies.Such startup companies as Rent the Runway Inc., Warby Parker Inc. and Allbirds Inc. have gone public this year. The WSJ report indicated that they have referred to themselves as “mission-driven,” counting the environment among stakeholders and touting their sustainable methods.
The lion’s share of Chobani’s revenue is from the North American market. CNBC reports that sales internationally account for roughly a tenth of its revenue, according to the regulatory filing.
The WSJ reported that Chobani is riding a wave of consumer and investor enthusiasm for socially responsible and health-conscious companies.
Chobani has intentions of raising raise $100 million in its IPO. This figure is often used by companies to calculate filing fees and is often changed, according to the WSJ report. It didn’t disclose how many shares it intends to offer to the public.
According to registration documents filed with the Securities and Exchange Commission on Wednesday, the company didn’t disclose how many shares it intends to offer to the public.
Having founded the company in 2005, Chief Executive Officer Hamdi Ulukaya, who is a Turkish inmmigrant, said in the company’s securities filing that, “We do well by doing good.”
Chobani began distribution in 2017 and its names means “shepherd” in Turkish and Greek. What made the greek yogurt popular among consumers was its higher protein percentage and thicker consistency, according to the WSJ report.
CNBC reported that Chobani recently expanded into new product categories, including coffee, coffee creamers and oat milk. Yogurt still accounts for most of its sales, and Chobani’s sales growth is outpacing that of the category.
Chobani said it plans to use a portion of the proceeds from the IPO to pay down debt, according to the CNBC report.