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 16-012   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 connec3ng with our fans—including, and most importantly, those who have a less than perfect experience. Every day we set out to do that a li>le bit be>er.”      –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 email.” - AP

Media

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