Overview

History  2005  Purchased an old Kraft manufacturing plant  2007  Placed the first cup on a store shelf in New York  2011  Named best-selling brand of all yogurt in the U.S.  2013  Estimated sales to be approximately $1.3 billion

Greek Yogurt Market

Crisis Timeline Complaints begin on social media Chobani uses the blog to inform about a quality issue Media stories are about stores pulling product 9/6 National media attention & Chobani publishes details of affected products 8/20 8/31 9/1 9/3 9/5 Voluntary recall is issued Mold is identified as Mucor circinelloides

Crisis Timeline Chobani stops posting new content on social media and focuses on replying to customers Chobani writes an apology on the blog and details the crisis response strategy California resident files class action lawsuit for negligence FDA received nearly 300 complaints of illness 9/7 9/11 9/18 9/25 9/27 Chobani thanks customers for support Chobani resumes promotional posts on social media 10/8

Chobani’s Response

Chobani “voluntarily and proactively removed and replaced the majority of potentially affected products”

SEPTEMBER 3  Products affected by a mold “commonly found in the dairy environment”  Affected less than 5% of product SEPTEMBER 5  Recall brings in the FDA  Press release  Social media statements  Code  Expiration dates 9/11/13 to 10/7/13

SEPTEMBER 6 “Mold behind Chobani recall poses little threat to consumers” –Chobani “Not considered a foodborne pathogen” –Randy Worobo, Cornell University

1)Updating customers in real time 2)Bolstering its Customer Loyalty Team 3)Providing real time social engagement 4)Supporting retail locations “Nothing is more important to us than responding to and connecting with our fans—including, and most importantly, those who have a less than perfect experience. Every day we set out to do that a little bit better.” –Chobani SEPTEMBER 11 SEPTEMBER 27

Customer Reactions  Complaints of hiding information  Customers updated each other

Main Points of Contention 1)Slow or non-responsive 2)Critical of company reaction 3)Ill customers 4)Disconnect between social media and customer loyalty teams 5)Invalid coupons

Company Reaction to Crisis Slow or Non-responsive

Disconnect between teams Ill Customers

Supportive Customers Invalid Coupons

Still Unsatisfied

Retailers “A representative for Kroger, the nation’s largest traditional supermarket operator, said Chobani issued a product withdrawal Friday. “It was not a food safety issue,” Kroger spokesman Keith Dailey said in an .” - AP

Media

“Grocery stores in the Treasure Valley have pulled Chobani Greek yogurt from their shelves following what the company is refusing to call a recall” – The Idaho Statesman “Chobani’s recent problem of mold in its yogurts shows the early warning that can come from social media but also the difficulties consumer companies can face in responding quickly enough to satisfy their consumers.” – The Wall Street Journal Media Strategy Messaging: “Health & Safety of Customers” Third Party Endorsement Spokesperson Comments

Page Principles  Tell the Truth  Transparency  Listen to the Customer  Social media staff vs. Customer Loyalty Team  Prove It With Action  Withdrawal & recall  Coupons

Page Principles  Manage for Tomorrow  Previous social media strategy  Third party endorsement  Conduct public relations as if the whole company depends upon it  Media relations and lack of comments  Social media hiatus  Remain calm, patient and good-humored  Messaging and key talking points

Discussion Question What impact will this crisis have on the company moving forward?

Significant Post Crisis Events  Oct. 11, 2013  Chobani & Cornell University announce partnership for food science and dairy innovation  Nov. 12, 2013  PR Week reports the CCO & several PR staff are no longer with the company  November social media complaints