Background

Chobani Yogurt was founded in 2005 as Agro-Farma, Inc. with its headquarters based in Norwich, New York (Chobani, 2014). Hamdi Ulukaya, Founder and CEO originates from Turkey and founded Chobani with the goal of making delicious, high-quality yogurt accessible to everyone, regardless of income or location (Cleveland, 2013).

 

Before starting Chobani Yogurt, Hamdi had been producing feta cheese for four years in New Jersey, after immigrating from Turkey in 1994 to study in New York. In 2005, he bought an old Kraft Foods Plant, which was rebuilt in 1920 and furnished with old yogurt production equipment. Hamdi employed local people who formerly worked in the plant (SBA, 2012).

 

Within 5 years of opening their doors they were worth $1 billion, and they held 52% of the market share within 8 years (Adamson, 2014). In 2011, they expanded their market coverage to Australia, and in 2012 they moved into Canada. Australia was a very profitable investment and is still growing today, but Canada was unable to support a long-term and sufficient high-quality milk supply so they were forced to close the establishment by 2013 as their temporary import license expired (Grocer, 2013). In 2012, they directly created more than 400 local jobs in Twin Falls, Idaho, and supported regional farmers by building the largest yogurt plant in the United States (SBA, 2012).

 

Current Market Position

Chobani Yogurt is the #1 Greek Yogurt seller in the United States, represented by sales of roughly $1.6 billion and a market share of 45.7% (Statista). The Greek Yogurt market is growing quickly in the United states, holding a 36% share of the entire United States yogurt market in 2013, compared to 1% in 2007 (Statista). Their main competitors in the Greek Yogurt segment are Dannon and Yoplait Greek, as well as Fage. The yogurt giant Ehrmann is currently preparing to enter the market and may become a threat to Chobani (Thomson, 2013).