PepsiCo, Inc. (PEP), Goldman Sachs Group Inc (GS), Mondelez International Inc (MDLZ)–Greek Tragedy: Chobani’s Tasteless Recall

Page 1 of 2

Greek yogurt is a bona fide craze these days. It’s not just that Jamie Lee Curtis and John Stamos are pushing different brands of yogurt on television. “Good bacteria” in yogurt is increasingly associated with health, and Greek yogurts have proliferated on demand. Now, though, Greek yogurt Chobani may have inadvertently created another culture: one of consumer distrust.

PepsiCo, Inc. (NYSE:PEP)

Some recent Chobani yogurts contained mold — hardly an ingredient anyone clamors for. In fact, its presence in some recent Chobani batches made some people ill. The only good thing might be the lesson we’ve learned: If something other than good bacteria has taken residence in yogurt, it’s likely that the container will begin “bloating and swelling.” Some customers even noted that their yogurt was “hissing” or “fizzing.”

Measuring the mea culpa
For a while, Chobani didn’t conduct an official recall at all, and even said it didn’t intend to. After a week of advising supermarkets to pull affected yogurts off their shelves, Chobani finally went ahead with a recall.

In other words, for a while customers had no idea that some Chobani yogurt contained mold, which is frankly shocking. (Incidentally, the affected yogurt’s codes are 16-012.)

Chobani has been insisting this was an honest mistake, and that its recall was voluntary and not FDA mandated. One part of the “honest mistake” argument: its yogurt doesn’t contain preservatives. In addition, it says that variety of mold is common in dairy products.

You can see Chobani’s recall notice and apology on its website, and make your own decisions as to whether it goes far enough.

Yogurt everywhere
Chobani has plenty of competition in the yogurt space. Yogurt products are one of the fastest-growing areas in grocery stores, probably because word’s gotten out about its positive health attributes.

In America alone, yogurt has become a $7 billion market, and over five years, it’s been growing at about 8.5%. Even more significant for Chobani, Greek yogurt has taken 40% of the market.

Several months ago, PepsiCo, Inc. (NYSE:PEP) decided to expand its Muller yogurt brand into new areas, and that brand includes some Greek varieties. Greek yogurts like Chobani have been taking some momentum from some of the other yogurt brands, such asĀ Goldman Sachs Group Inc (NYSE:GS) Yoplait and Danone’s Dannon. Danone also owns Stonyfield Farms and Activia. Danone’s got some star power behind its yogurts; its advertising features Jamie Lee Curtis (Activia) and John Stamos (Oikos Greek yogurt).

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!