NEW YORK (Reuters) - Chobani, the Greek yogurt maker that has grown into a U.S. sensation, is looking to sell a minority stake in a deal that could value the company at around $2.5 billion, people familiar with the matter said.
The company is working with Bank of America Corp
Chobani, based in New Berlin, New York, previously held discussions with banks about pursuing an initial public offering, but switched gears in the face of mounting competition from other Greek yogurt companies, the people said.
The people declined to be named because the matter is not public.
Representatives for Chobani did not immediately respond to requests for comment, while Bank of America declined to comment.
Founded in 2005 by Turkish immigrant Hamdi Ulukaya, Chobani started operating from a former Kraft Food yogurt plant in South Edmeston, New York, and grew into one of the top-selling Greek yogurt brands in the United States.
Chobani's sales grew more than 30 percent in 2013 to over $1 billion, according to a person familiar with the company.
The company suffered a blow in September after it was forced to recall moldy cups of Greek yogurt after customers complained that the product tasted runny and fizzy, and some reported illnesses.
And in December, Whole Foods Market Inc
Chobani expects little impact from the end of the relationship since the supermarket represented less than 0.5 percent of its retail distribution, the person familiar with the company said.
Greek-style yogurt, which is thicker, creamier and often higher in protein than other types of yogurt, now makes up more than 40 percent of the U.S. yogurt market, which is worth $7.4 billion according to research firm Mintel.
Chobani competes with brands such as Danone SA's
(Additional reporting by Martinne Geller in LONDON; Editing by Soyoung Kim and Lisa Shumaker and Miral Fahmy)