Chobani: Hamdi Ulukaya bought a historic yogurt facility in upstate New York. That had before been owned by Kraft in 2005. Chobani, his company, sold its first yogurt two years later.
Chobani is a multibillion-dollar company that has filed to go public. Hamdi Ulukaya grew up as a farmer’s kid with no commercial experience. Handles the brand’s current success.
His leadership approach has been critical to his success. Which includes recruiting refugees, ignoring language obstacles, and putting people first.
Background
Chobani’s CEO, owner, founder, and chairman is Hamdi Ulukaya. He was a Turkish immigrant who came from a nomadic sheepherder family. He described trekking into the mountains with animal herds. To manufacture yogurt and cheese. Then returning to the hamlet in the winter in a New York Times interview. The sense of togetherness and safety is what he remembers most from this period.
He later attended a boarding school. That taught pupils to become teachers, but he never completed it. Instead, he planned to travel to Europe until he was accosted by a stranger. Who advised him instead to travel to America. So he chose to attend university. And he came to the United States in 1994 with $3,000 in his pocket and a little luggage.
Hamdi Ulukaya began his career in the American food sector in 2002. Following his father's advice to start with feta cheese. He was,but, dissatisfied. Hamdi Ulukaya was concerned because he believed he would go out of business every day. He had a nice vibe when he read an ad for an equipped yogurt plant one day. He contacted his attorney and purchased the factory.
Hamdi Ulukaya told Fortune’s Leadership Next podcast that after he acquired the business. He learned that getting good food was still difficult. The industry is divided into two categories: General and Specialized. There are huge brands, which are less expensive but may be of poorer quality. And specialist brands, which are more expensive. And generally unattainable to the general public.
Ulukaya devised a plan to produce high-quality food for his children and offer it to the whole public. According to Bloomberg, the firm earned yearly sales of more than $1 billion. And less than five years after buying the yogurt facility in 2005. It was the #1 yogurt brand in the United States by 2011.
Ulukaya, as CEO and founder, prioritizes people. And their communities, resulting in strong employee-employer relationships. But, when Kraft’s factory closed, he saw an opening and seized it. He bought the factory and turned it traveled working side by side with the employees.
According to Worth, when Chobani constructed a new facility in Idaho in 2011. Ulukaya traveled to the state before breaking ground to speak with farmers. About what they wanted from businesses.
Ulukaya shocked his full-time staff by handing them ownership interests depending on. How long they had worked there. According to the New York Times in 2016. Chobani’s success, he says, is due to the strength of its workforce.
Ulukaya’s net worth has grown to $2 billion by 2019. He was named one of the most influential entrepreneurs of the previous decade by Inc. magazine in the same year. According to Bloomberg, the company earned $1.5 billion in yearly sales by 2020. And had established itself as a champion of responsible business.
According to Forbes, Chobani has increased. The hourly compensation for employees to $15 per hour in 2020. Which is more than double the federal least wage.
Style of leadership
Ulukaya's leadership style was defined early on. By his willingness to share his power to further empower others around him. The difference between those who left the yogurt factory. And Ulukaya is that the former did not see anyone, but Ulukaya arrived because he did.
Ulukaya embraced the teachings of Persian scholar Rumi. Who stated that where there is ruin, there is hope for a treasure.
This manifested itself in Ulukaya’s life because, while Kraft regarded the factory as a ruin. He saw it as a treasure. He recognized a community and individuals he could rely on.
Chobani was created on the foundations of trust and acceptance, according to the CEO. In the small hamlet where the plant is located in upstate New York, diversity was uncommon. Ulukaya, but, began employing immigrant workers. From Utica when he came and founded Chobani. Even though come from diverse backgrounds. He was confident that there would be no social confrontations. And that the community would embrace them.
He feels that while refugees have aided the firm’s growth. The company has also influenced their life since when you can stand on your own two feet. And provide for your family, you stop being a refugee. People respect one another and what they have after they get to know one another and learn from one another.
The efforts of the community
After joining the Giving Pledge to assist address the worldwide refugee crisis. Ulukaya created the Tent Partnership for Refugees in 2016. Around 200 international firms, including American Express, Airbnb, Bain & Company, and Doordash. And FedEx has joined the alliance to help refugees. Members come from a variety of businesses, including technology. Consumer products, professional services, and so forth.
Too far, participants of the collaboration have committed. To use over 39,000 refugees. Supporting over 5,000 refugee businesses. And customizing goods for over 144,000 refugee clients.
According to Worth, refugees and immigrants account for around 30% of Chobani’s workforce. The CEO has seen through the boundaries of language. According to its website, the firm has also donated more than 55 million of its goods to feed families. And communities in need, as well as awarded more than 175 grants.
Looking forward
The firm has now grown into more goods. Such as oat milk, plant-based coffee creamers, dairy, and probiotic beverages. And is now the country’s best-selling strained yogurt brand. Ulukaya wishes to maintain the firm running as it is, with an emphasis on the community. And the food produced, introducing nutritious foods into people’s lives.
In the future, he hopes to expand his company’s effect. While maintaining its current status. The business filed for an IPO on the Nasdaq under the symbol CHO in July 2021. According to Reuters, the company’s value might be worth more than $10 billion.
Chobani has stated that the revenues of the IPO would be used to pay down debt and restructure the company.