Why Chobani bought Daily Harvest

According to Circana, health-conscious consumers in the US spend more than half a trillion dollars on food and beverage, with over half of that spent in retail and more than a third in foodservice. The market intelligence firm estimates that nearly two thirds (64%) of healthy eaters prefer foods that are free from artificial ingredients, and almost the same proportion (62%) think food can be as powerful as medicine (Source: Circana, A Pulse on Consumer Well-being, US food & beverage 2024). Convenience, too, remains a big overarching trend – according to Deloitte Consulting, about a quarter (23%) of US consumers seek convenience when shopping for food; with younger consumers (57% of Millennials and 61% of Gen Zs) particularly keen. Finding ways to provide both healthy and convenient options has been a winning strategy for food and beverage brands. Dairy companies in particular have embraced demand for high-protein and functional food and beverage in a myriad of ways – from positioning cottage cheese as a natural protein-packed snack, to turning drinkable yogurt and kefir into functional on-the-go staples in the refrigerated aisles. Greek yogurt major Chobani is among the brands with presence in this space, having launched in the past 9 months a new line of 20G Protein Yogurt and 15G, 20G, and 30G Protein Yogurt Drinks with only natural ingredients and no added sugar. Niel Sandfort, who leads Chobani’s R&D and NPD activities, said at the time consumer demand for high-protein, low-sugar offerings ‘has moved beyond the hardcore fitness community and made its way to the mainstream consumer’. But Chobani is no longer just a Greek yogurt company. The firm acquired ready-to-drink coffee and creamer business La Colombe in 2023 and has now tapped into another growth segment: ready to eat meals. Daily Harvest started out as a smoothie delivery service founded by Rachel Drori in 2015. Drori’s idea was to challenge negative consumer perceptions around frozen food while introducing nutritionist-formulated natural, convenient food and beverage options directly to health-conscious consumers. The company has since established itself among the disruptors in the US ready meals market – alongside the likes of HelloFresh, Thistle and FreshRealm – which has traditionally been dominated by ultra-processed foods. Instead of the usual UPF fare, Daily Harvest offers ‘frozen-fresh’ (ie, frozen very soon after the plant has been picked) plant-based food and beverage products through both D2C and retail channels. For its smoothies, the company sends out nutritionist-formulated blends of superfoods, frozen fruits and vegetables, pre-portioned and packed in single-serve cups, ready to be blended at home by the customer. Back in 2015, the format ‘made perfect sense’ according to Drori, since smoothies were familiar to shoppers and also allowed the company to showcase its focus on fresh ingredients. Over the years, the firm has broadened its portfolio to offer breakfast bowls, savory meals, snacks and protein powder among other lines. In 2022, it introduced Harvest Bakes, ready-to-bake meals comprising vegetables, legumes, and whole grains and no artificial additives; briefly offered a make-at-home almond milk alternative, and in early 2025, began to offer high-protein smoothies, an organic protein powder, and organic bite-sized snacks. Expansion in retail began in 2023, with listings at over 1,000 Kroger Family of Companies stores, including Kroger, Dillons, Fry’s, Fred Meyer, QFC, Ralphs, Smith’s and Harris Teeter. Last year, Daily Harvest made its Costco debut – the company’s Strawberry + Peach Smoothie was sold in the freezer aisle during a 13-week rotation starting in March 2024 at select locations across 12 US states. Daily Harvest then launched a range of smoothies, bowls and popsicles at Target stores in California, Colorado, Massachusetts, Montana, Oregon, Rhode Island, Utah, Virginia, Washington DC, and Washington State in May 2024. The company’s latest product before the acquisition by Chobani was announced was a one-ingredient, organic-certified pea protein powder released in March 2025. Ricky Silver, CEO of Daily Harvest, remarked that the product delivers “exactly what our customers have been asking for – pure, clean protein without any of the fillers, gums, or additives found in most powders on the market”. According to Mintel, sales in the US prepared meals market amounted to nearly $20bn in 2024, a slight dip year over year, but positive single-digit growth is forecast in the long run. Market intelligence agencies have for years projected that making ready meals healthy and nutritious is one way to lure in health-conscious consumers – and re-making a category that’s majored on fast, convenient but not necessarily nutritious food options for decades is what has put companies like Daily Harvest on food majors’ radars. For Chobani, the acquisition would strengthen the dairy major’s presence in the natural, healthy food and beverage segment while allowing it to enter the frozen ready meals space. Maintaining Daily Harvest’s all-natural USP going forward will be a crucial next step, however, in order to continually stand out. In a conversation with Daily Harvest’s Rachel Drori, Chobani founder Hamdi Ulukaya said the next steps for the ready meals and smoothies brand would be ‘to make it bolder, bigger, but absolutely 100% Daily Harvest’. “Your team has built a giant,” he told her. “And I and Chobani had an enormous amount of respect for that. And one of the hardest things that we are going to have to do is make sure that we stay true to that promise. Of food, have that food come to life, promise to people who are consuming it every day.” While Daily Harvest’s focus has been on D2C and retail so far, Chobani also has a presence in foodservice. If the Greek yogurt company adapts Daily Harvest’s offering to serve that channel too, this could unlock substantial benefits, since $275bn was spent by health-focused consumers on food and beverage in US foodservice in 2024, according to Circana. Expanding the brand further in retail is also likely to unlock additional revenue for the dairy major - in retail alone, US health-conscious consumers shelled out $363bn on food and drink. Coupled with expansion in RTD coffee and continued innovation in protein and yogurt – a category that GLP-1 users have come to embrace – Chobani has set itself up to benefit from the growing demand for natural yet convenient food and beverage options.