US: Yoghurt firm Chobani opens second US plant

By Dean Best | 17 December 2012

Chobani is facing competition from Danone, analysts say

Chobani is facing competition from Danone, analysts say

US-based Greek yoghurt firm Chobani has opened its second manufacturing plant in the country as it looks to cater for strong demand for the product.

Chobani today (17 December) unveiled what it claimed to be the world's largest yoghurt factory in Twin Falls in Idaho.

The company, which leads the fast-growing Greek yoghurt category in the US, said it had spent US$450m on the one million square foot site.

"Today marks not only the opening of the world's largest yogurt plant but symbolises the revitalisation of US manufacturing. We believe that no other yogurt facility is comparable to the size, technology and efficiency displayed in our new Twin Falls site," Chobani founder, president and CEO Hamdi Ulukaya said.

He added: "Twin Falls is our second home but will not replace our Central New York plant, which will continue to operate at full capacity. In fact, we will continue to grow and invest in our New York operations."

Chobani is the largest Greek yoghurt producer in the US by sales and has led the growth of the category in recent years. However, last month analysts at Sanford Bernstein claimed Chobani was losing market share at the expense of Danone.

Chobani is still seeing sales increase but not as quickly as its French rival but Sanford Bernstein believed the company could bounce back as it expands capacity.

"We believe that it will regain momentum given increased capacity and more tactical use of promo going forward," the analysts wrote.

Chobani is also looking to start production in Canada. However, the company told just-food it had yet to finalise any plans and was still in talks with local government officials in Ontario.

Show the press release

Chobani Celebrates Grand Opening Of World's Largest Yogurt Manufacturing Plant In Twin Falls, Idaho

$450 Million, State-of-the-Art Facility Built in Just 326 Days

NORWICH, N.Y.Dec. 17, 2012 /PRNewswire/ -- Today Chobani, America's #1 selling yogurt brand, celebrates the grand opening of its second domestic manufacturing facility.  Located in Twin Falls, Idaho, Chobani has invested $450 million to build this one million square foot, world-class operation in less than 11 months.

Chobani broke ground on the 200-acre site in December 2011 and began construction earlier this year.  Phases one and two of the project were completed in an unprecedented 326 days, thanks to the hard work and dedication of over 2,000 men and women who put in over 1.7 million man hours to build the state-of-the-art facility from the ground-up.

"At Chobani, we're makers. Our business has been built one cup at a time, by the hands of our people," said Hamdi Ulukaya, Founder, President and CEO of Chobani. "Today marks not only the opening of the world's largest yogurt plant but symbolizes the revitalization of U.S. manufacturing. We believe that no other yogurt facility is comparable to the size, technology and efficiency displayed in our new Twin Fallssite."

Ulukaya added, "Twin Falls is our second home but will not replace our Central New York plant, which will continue to operate at full capacity.  In fact, we will continue to grow and invest in our New Yorkoperations."

Chobani's presence in Idaho has already served as a catalyst for hundreds of new jobs and a significant positive economic impact in the region. More than 300 people have been employed at the Twin Falls plant, as production and distribution have already begun on new product innovations set to launch nationally in 2013. Additional hires are expected to come on board over the next several months. 

"On behalf of the state of Idaho, I'm proud to welcome Hamdi and the extended Chobani family to Twin Falls," said Idaho Governor C.L. "Butch" Otter. "We've been so impressed by this company and its people and have already seen the positive effect Chobani has had in this great state. We look forward to a long-lasting partnership and are excited about what the future will bring as Chobani continues to grow its roots here."

Since choosing Twin Falls as its second home, Chobani has worked closely with the Twin Fallscommunity in support of various local initiatives. In that time, Chobani has initiated a job training program in conjunction with the College of Southern Idaho and the Shepherd's Gift Foundation, Chobani's charitable arm, has supported the Southern Idaho Children's Learning Center and Twin Falls Rapids Soccer Club, among others.

For more information, visit www.chobani.com. Like Chobani on Facebook at www.facebook.com/chobaniand follow on Twitter @chobani.

Original source: Chobani

Sectors: Dairy

Companies: Chobani, Danone

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