A turkish immigrant used a commodity product to turn a $800,000 SBA loan into $10 BILLION.
This is an incredible story 👇🏽👇🏽👇🏽
This is an incredible story 👇🏽👇🏽👇🏽
1/Hamdi Ulukaya grew up in Erzincan, Turkey.
His family was Kurdish dairy farmers, sheep herders and feta cheese makers.
While studying political science, he started advocating for Kurdish rights.
Some of his other activist friends went missing…
His family was Kurdish dairy farmers, sheep herders and feta cheese makers.
While studying political science, he started advocating for Kurdish rights.
Some of his other activist friends went missing…
2/Then one day, it was his turn.
He was brought in and questioned for hours by authorities.
Despite his pacifist approach, they sent a clear message.
He realized it was time for a different life…
He was brought in and questioned for hours by authorities.
Despite his pacifist approach, they sent a clear message.
He realized it was time for a different life…
3/ In 1994, he moved to the US attending Adelphi University and then SUNY.
He loved the freedom and enterprising nature of the US.
But he missed one thing: Good Cheese.
He loved the freedom and enterprising nature of the US.
But he missed one thing: Good Cheese.
4/ 2 years later, his dad visited him in NY for the first time.
Equally unimpressed with the quality of Feta cheeses he sampled.
Hamdi's dad had an idea:
Start making great cheese with the old family recipe!
Ulukaya quickly dismissed the idea.
But he couldn’t shake it…
Equally unimpressed with the quality of Feta cheeses he sampled.
Hamdi's dad had an idea:
Start making great cheese with the old family recipe!
Ulukaya quickly dismissed the idea.
But he couldn’t shake it…
5/ By 2002, he launched Euphrates (you can still visit the website euphratescheese dot com!)
He imported some cheese. Then started a small factory. He brought his family’s unique process to bear.
The cheese tasted much better.
But the business was hard…
He imported some cheese. Then started a small factory. He brought his family’s unique process to bear.
The cheese tasted much better.
But the business was hard…
6/ He slaved away, struggled to hire and most importantly: there wasn’t a ton of customer demand.
No one seemed to notice or care about the flavor outside of a few greek restauranteurs.
No one seemed to notice or care about the flavor outside of a few greek restauranteurs.
7/ In 2005, he received a piece of junk mail announcing the sale of a 1920s yogurt and cheese factory owned by Kraft.
He threw the flyer away, but within days was touring the factory located
Between a biker bar and a cemetery on its last legs. This was a fire sale...
He threw the flyer away, but within days was touring the factory located
Between a biker bar and a cemetery on its last legs. This was a fire sale...
8/ One of his advisors called him a F*#($n’ idiot if he bought it.
But the self described “dairy boy” was smitten.
He was undeterred for 2 reasons…
But the self described “dairy boy” was smitten.
He was undeterred for 2 reasons…
9/
A) It was a good deal - Under $1M, everything worked.
There were already employees in town.
The machinery alone was worth more than the price!
B) He hated American yogurt.
Friends who would visit Turkey or Greece and return raving about the yogurt.
He made the leap.
A) It was a good deal - Under $1M, everything worked.
There were already employees in town.
The machinery alone was worth more than the price!
B) He hated American yogurt.
Friends who would visit Turkey or Greece and return raving about the yogurt.
He made the leap.
10/ He bet everything and received an $800k SBA loan to buy the factory.
Then he realized...they were missing a strainer! Those cost $1M brand new.
After months searching, he took the most important drive of his life to see a used one in Wisconsin for $50k...
Then he realized...they were missing a strainer! Those cost $1M brand new.
After months searching, he took the most important drive of his life to see a used one in Wisconsin for $50k...
11/ On his drive out there, he came up with the name: Chobani
From the Turkish word Coban meaning shepherd…
it was the perfect ode to his ancestors.
From the Turkish word Coban meaning shepherd…
it was the perfect ode to his ancestors.
12/ It took him 2 years to perfect the formula while also improving/renovating the factory.
What mattered: consistency, flavor and design.
Slightly sweeter than what you get in Turkey to align to American tastes, but still smooth and creamy.
He made some big decisions:
What mattered: consistency, flavor and design.
Slightly sweeter than what you get in Turkey to align to American tastes, but still smooth and creamy.
He made some big decisions:
13/
• Bright colored cups to save on marketing spend
• Fruit on the bottom to match with US standards
• Emphasis on high protein/low fat for health
In 2007, he finally launched:
Chobani Greek Yogurt.
He made one decision v diff from Euphrates..
• Bright colored cups to save on marketing spend
• Fruit on the bottom to match with US standards
• Emphasis on high protein/low fat for health
In 2007, he finally launched:
Chobani Greek Yogurt.
He made one decision v diff from Euphrates..
14/ he avoided the specialty stores.
He went straight to the biggest grocers and even risked buying his way into the stores, but he didn’t offer cash.
He offered more yogurt... and then…
He went straight to the biggest grocers and even risked buying his way into the stores, but he didn’t offer cash.
He offered more yogurt... and then…
15/ Chobani was a hit.
By year 2, grocery stores couldn’t get enough and banks who had ignored him were now calling Hamdi daily. It was doing well into the 8 figures in sales.
By year 5, they hit $1 Billion in sales with over 50% market share in a market they built…
By year 2, grocery stores couldn’t get enough and banks who had ignored him were now calling Hamdi daily. It was doing well into the 8 figures in sales.
By year 5, they hit $1 Billion in sales with over 50% market share in a market they built…
16/ Today, according to the WSJ, Chobani is preparing to IPO at a $10 BILLION valuation.
Hamdi is the sole shareholder.
Hamdi is the sole shareholder.
17/ Ulukaya’s attributes his success to his principles:
+ Product first
+ Invest in employees and community
+ Sell big deals to grow big fast
+ Build what you know
+ Product first
+ Invest in employees and community
+ Sell big deals to grow big fast
+ Build what you know
18/ Sources:
newyorker.com/magazine/2013/…
inc.com/kimberly-weisu…
fastcompany.com/3068681/how-ch…
hbr.org/2013/10/choban…
newyorker.com/magazine/2013/…
inc.com/kimberly-weisu…
fastcompany.com/3068681/how-ch…
hbr.org/2013/10/choban…
19/ Why I love this story:
Unfair advantage: A business built using knowledge, heritage and hustle to make it work
Not Tech: There are so many ways to build and bootstrap
Invest in People: Hire great people and giving back
Pivot Smart:He took a risk but protected his downside
Unfair advantage: A business built using knowledge, heritage and hustle to make it work
Not Tech: There are so many ways to build and bootstrap
Invest in People: Hire great people and giving back
Pivot Smart:He took a risk but protected his downside
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