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 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 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