Coca Cola is said to have dropped its plan to buy minority stake in Greek yogurt maker Chobani, as the beverage company believes that it may not fit its portfolio.
Sources familiar with the matter told CNBC that the soft drinks giant is not looking at acquiring the stake.
This news comes just a day after the beverage giants PepsiCo and Coca Cola were reported to have been interested in acquiring a minority stake in Chobani.
Chobani has been planning to sell minority stakethat includes warrants owned by private equity firm TPG Capital which represents 10-20% of the yogurt company's equity, Reuters reported.
The yogurt maker is seeking an investor to widen its distribution, supply chain and manufacturing operations for brands such as Flip, reported CNBC.
The yogurt maker is also holding talks with other firms.
If Chobani is successful in selling the minority stake, it would take the value of the complete firm to $3bn, including debt.
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 strategy. This deal entailed TPG to have representation on Chobani's board and CEO Hamdi Ulukaya to become the chairman.
Beverage companies such as PepsiCo are making efforts to diversify their business due to slow down of sales of carbonated drinks.
Pepsi is not new to the dairy segment - it began selling yogurt under a venture with German dairy company Theo Müller in 2012.
