Soft drink giants PepsiCo Inc and Coca-Cola Co are said to be holding separate talks to acquire minority interest in US-based yogurt maker Chobani.
The move indicates that beverage companies are making efforts to diversify their business due to slow down of sales of carbonated drinks.
Chobani is looking at buyers to sell a minority stake, which includes warrants of private equity firm TPG Capital, which represents between 10% and 20% of the yogurt maker's equity, reported Reuters.
The yogurt maker is seeking an investor to widen its distribution, supply chain and manufacturing base for brands such as Flip, reported CNBC.
The negotiations are going on and the outcome is uncertain. The yogurt maker is also holding talks with other firms.
Chobani is a New York-based company set up in 2005 by Hamdi Ulukaya, a Turkish immigrant. Last year, TPG Capital LP provided the firm $750m to help it finance a turnaround. This deal entailed TPG to have representation on Chobani's board and CEO Hamdi Ulukaya would become the chairman.
Pepsi and Coca-Cola are not new to the dairy segment - Pepsi began selling yogurt under a venture with German dairy company Theo Müller in 2012, while Coca Cola began national distribution of milk product, called FairLife, under a joint venture with Select Milk Producers, reported the news agency.
