By Alissa Figueroa
Rock Center
One day in 2005 Hamdi Ulukaya, owner of a small feta cheese company in upstate New York, took a tour that would change his life. As he walked through the 100-year-old yogurt factory, a handful of employees were busying themselves with the work of shutting the factory down.
“On the way back, I called my attorney and I said, ‘I just saw a plant and I think I want to buy it,’” explains Ulukaya, a 40-year-old immigrant who grew up on a dairy farm in eastern Turkey. “He said, "You’re really, really crazy. That's not going to happen.’"
But Ulukaya saw something in the defunct factory that no one else did: an opportunity to bring the yogurt of his youth to the masses. So using loans of less than $1 million, some backed by the Small Business Administration, he bought the plant.
Ulukaya spent the next two years developing the recipe for Chobani yogurt.
“That place became my home,” Ulukaya told Rock Center's Harry Smith in an interview airing Thursday, Dec. 13 at 10pm/9CT on Rock Center with Brian Williams. “It was lonely days, difficult days, a lot of question marks, a lot of pressure to see if I would make it to the next day.”
No longer does Ulukaya have to worry if his company will make its next payroll.
Since launching in 2007, Chobani has grown into a $1 billion business, according to Ulukaya, with no signs of slowing down. He also did something arguably more impressive: he changed what Americans eat.
Before Chobani came along, Greek yogurt sales in America were nearly nonexistent. Now, more than a third of the yogurt we eat is Greek, and Chobani is the biggest seller.
Ulukaya's personal wealth is now valued at $1.1 billion by the Bloomberg Billionaire's Index.
Impact on the local community
The good fortune, though, is not only his. Chobani's rise has been a lifeline for one of the most economically depressed parts of the country: rural upstate New York. This area was struggling long before the recession hit, with tens of thousands of manufacturing jobs disappearing in the last few decades.
“I expected the plant to sit there vacant [after Kraft left]. I had these visions of it becoming dilapidated and falling apart,” says Maria Wilcox, one of the four remaining Kraft workers that Ulukaya hired from New Berlin, the tiny town where the plant is located.
Growing from those first few workers, Chobani now employs more than 1,300 people in upstate New York and has made $193 million in capital investments on the old factory.
“Other companies came and looked at the plant and the surrounding area and left. [Ulukaya] always had a vision for the plant here that included the community,” says New Berlin Mayor Terry Potter. “He’s brought a sense of rejuvenation to the community.”
Along with good-paying jobs, Chobani built New Berlin its first little league field, free of charge.
Chobani also trucks 4 million pounds of milk daily to its New Berlin factory from the area's 5,300 dairy farms. New York produced some 530 million pounds of yogurt in 2011 -- more than twice 2008 levels – and a direct result of Greek yogurt production.
A new kind of CEO
Ulukaya has been able to accomplish all of this so quickly by bypassing many of the traditional models for business success, especially in the food industry. Instead of focus groups, consultants and big marketing campaigns, Ulukaya has focused on perfecting his product based on response from consumers. Ulukaya still has messages from customers (every single one) forwarded to his cell phone daily.
The company has been particularly good at harnessing the power of positive feedback online.
“The communication is so fast; you don't need huge money for the marketing or your voice to be heard,” says Ulukaya. “It's a flat world.”
In fact, Chobani has only launched two television ad campaigns, the most recent during the 2012 London Olympics, for which they were an official sponsor. Ulukaya had to pull the ads because the factory couldn’t keep up with the increased demand.
Chobani runs on the idea that consumers’ voices will shape the market; with the internet, word of mouth is a more valuable marketing tool than ads, says Ulukaya. This helps new guys on the scene make a big impact quickly. And, he adds, it’s their responsibility to challenge the status quo.
“It's a shame what's in the supermarkets today,” says Ulukaya. “It doesn't have to have all these preservatives. It doesn't have to have all these bad colors and stuff like that. . . It's the manufacturer's responsibility. They can make it better. They can make it nutritious, and they can make it accessible. That's what we did in Chobani.”
So what’s next for the company?
Chobani just opened its first retail store, a boutique yogurt bar in SoHo, this summer. Now customers can sit down to enjoy a “yogurt creation," with gourmet fresh toppings and, of course, Chobani.
Ulukaya is coy about what’s on the horizon for Chobani as far as new products, but he’s clear about one thing: this is only the beginning.















The article doesn't meantion that New York dairy farmers get the lowest pay in the Northeast. This is why the yogurt companies are coming to NY. Archaic federal milk marketing order rules utilize a formula that results in low prices for rural NY. Drive around and take a look at the farms that are falling down, abandoned and in disrepair.
This guy started his company here in Upstate NY because he LIVED here. We have many immigrants from that region; Greece, Lebanon, Syria etc as well as Turkish.
Also, he bought the plant from Kraft, who was already making yogurt there. So it's not like he came here to take advantage of low milk prices; he and the yogurt plant were already here! And we have always been a big dairy state. He is probably SAVING many of the farms dairy farms that were failing...that's what I have been hearing.... and I live right here where this is happening.
This company has just opened a large facility in Southern Idaho and already announced plans for expansion. Idaho is a business friendly state. Encouraging production here means less distribution of current commodities. We are greatful.
Thank you to everyone making positive comments! This is a great success story that is happening in my backyard! We are so excited here (Utica, NY area) about our neighbor's success. He lives in the town next to me, and is a dedicated, "real", self made man. I doubt he will sell out anytime soon if ever. He has old-school values and he is YOUNG! Only 40. It was not just luck; from what I know he had a heartfelt desire to share REAL, good tasting, healthy yogurt; not the sugared up liquid we've been eating for years. I gave up eating that junk because it was so UNhealthy!
Greek (Turkish, Lebanese, whatever you want to call it, it's all the same in that region of the world) yogurt is delicious. It has a different taste that can seem sour until you get used to it. But it's like a good wine; eat it slowly and savor the taste. It has depth, AND lots of protein. It's a very healthy food that I have made a staple and my TEENAGERS love! You can easily substitute this for sour cream in recipes, and add fresh fruit for a truly low sugar, protein packed food. I add fresh or frozen blueberries and raspberries and it's wonderful. Keeps me full for hours. THose berries are plentiful here as well, so it's a perfect marriage!
I don't know about or understand the issues outlined by New York Dairy Farmer, but I have to believe that the sheer volume of milk being purchased by Chobani has to be a good thing for our farmers and has a ripple effect in our local economy. I know everyone around here is jubilant about the Chobani story and the general sentiment I've heard is that it's great for our farmers at a time when our economy and farms were declining. Maybe there will be a comeback! And here's the icing on the cake for our area: Fage is made just an hour or so to the east, out near Albany!! So our little corner of Upstate NY is Greek yogurt heaven!!
Too bad they don't mention the state of the art facility they are building in Twin FAlls Idaho! This has been a major undertaking, almost a million square foot facility with all state of the art equipment. This type of a project IS worth mentioning and they started construction right at a year ago and they have opened a couple lines already. Kudos to the people that have made this happen.
Great story..it's always about focusing on the customer and want they want and thinking outside of the box!
www.HeatherPicken.com
I love Chobani, its definitely richer in flavor than standard fare. I like that the flavored ones are nearly as sweet as you would typically find.
This man is Turkish (from Turkey) and he is producing "yogurt", which is Turkish, not 'Greek' yogurt, as you coined it in the article. The word yogurt (yoğurt) itself is a Turkish word (Greeks call it galanoksino)!
If you love our yoghurt now, wait 'til January!!! Going to be an exciting month for Chobani, and our "Chobaniacs"!!!