Yogurt Wars: Danone sues Chobani over protein claims amid GLP-1 drug boom

The French dairy giant Danone has initiated legal action against its US competitor Chobani, alleging that Chobani has been misleading consumers by inflating protein content claims on its yogurt products. The lawsuit, filed in Manhattan federal court, centers on Chobani's "20G Protein" line, which Danone views as a direct competitor to its own Oikos Pro ultra-high-protein yogurt.

This "yogurt war" underscores a broader trend in the food industry: the increasing demand for high-protein products. This demand is particularly amplified in the United States, where a growing number of individuals using GLP-1 weight-loss drugs are actively seeking protein-rich foods to mitigate muscle loss, a common side effect of such medications. A study by Boston Consulting Group suggests that yogurt, unlike protein shakes, offers a more sustained benefit for these consumers.

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High-protein foods like yoghurt or ... meat seem to increase in frequency during and even more after stopping GLP-1s.

Danone claims Chobani's labeling practices are designed to inflate serving sizes, thereby misleading consumers and enabling Chobani to undercut Danone's Oikos brand, a global business valued at €1 billion, on price. Danone insists that consumers deserve clear and consistent nutritional information to make accurate product comparisons.

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In a way, I am kind of laughing at it. We never add external protein to our products. We will never mislead anybody.

However, Chobani CEO Hamdi Ulukaya vehemently denied the accusations. He characterized Danone's claims as attempts to generate negative headlines for his privately held company. "In a way, I am kind of laughing at it," Ulukaya stated, asserting that Chobani "never add[s] external protein to our products" and would "never mislead anybody."

Danone has reportedly struggled to meet the surging consumer demand for high-protein yogurts, prompting it to increase production capacity. Despite these efforts, analysts express concern about the company's perceived lack of urgency in revitalizing its US dairy business. Danone's shares have seen a decline this year, while competitors like Chobani have experienced significant growth, reportedly increasing their US market share substantially.

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Competitors, notably Chobani, (are) doing a much better job and growing currently at more than 20 per cent.