Once an immigrant himself, Chobani yogurt founder becomes icon for refugees
Hamdi Ulukaya, a Turkish-American businessman of Kurdish ethnicity, was photographed in September on the Greek island of Lesbos wearing a blue UNHCR vest. He was sent there by the United Nations High Commissioner for Refugees as the UNHCR's newest eminent advocate. The appointment is a serious acknowledgment of his years of work with refugees and other philanthropic efforts.
Ulukaya is no ordinary businessman. At 43, he
challenges popular conceptions of billionaire CEOs. First, almost
everyone calls him by his first name. His signature simply reads
"Hamdi." He is unpretentious and down-to-earth, and wears a kind smile
that makes people feel like they have known him for decades.
He is also comfortable with his humble background and
manages to make his personal history a source of inspiration, rather
than resentment and regret. Born in a small town called Ilic of the
eastern province of Erzincan, he proudly claims his identity as Kurdish.
Indeed, he has angered Turkish nationalists with comments such
as “I left Turkey because I was Kurdish and was very serious about
Kurdish rights. A lot of Kurds in Turkey fled the country because their
human rights were violated, their villages were bombed.” This statement
was taken out of context of a longer explanation of why he cares deeply
about refugees from Syria and Iraq. Headlines have also ignored his
years of dedication and hard work to help displaced people and establish and contribute to charities in several Turkish cities.
Ulukaya has a big heart, so big that when he first launched
Chobani Yogurt, he promised to donate 10% of his profit to
international charities. He jokes about that decision: “It was easier to
commit those days because I had nothing to lose.” But don't let the
joke fool you. He has been hiring refugees to work in his yogurt
factories in New York and Idaho for the last five years. Despite
warnings against hiring refugees (“They don’t speak English!” “They
don't have driver’s licenses!”), Ulukaya has made executive decisions to
offer employment to people who have fled from hunger, persecution and
fear. He has a firm belief that if a refugee can survive all these
hardships, he will have the motivation to be the best. He also sees that
variety can be an asset for an establishment.
That is where Ulukaya is different. He not only advocates
for the wealthy to contribute to efforts to help refugees, but actively
uses his business to provide job opportunities for them. At the end of
May, Ulukaya made the "giving pledge" initiated
by Bill and Melinda Gates and Warren Buffet. The pledge commits Ulukaya
to donate much of his money to philanthropy and help in any way that he
can. He had also set up a foundation, Tent, for this cause. On Sept. 29, he spoke at the Clinton Global Initiative
in New York, elaborating upon what businesspeople can do to help
alleviate the suffering of the displaced. His motto reflects his own
life philosophy: “Just writing checks is not enough.”
So what is the secret behind Ulukaya's success?
Hard work and passion are the short answer. His story is one of
“reaching your dreams,” he explains. Coming to New York in 1994 to learn
English, Ulukaya had a difficult time finding the kind of yogurt and
cheese he enjoys. Yes, American markets are flooded with hundreds of
different brand names and colors, but none of it tastes like the yogurt
you're used to if you are from the Balkans, Anatolia or the Levant.
Unless you go to a specialty store, it was rather difficult to find the
kind that is white, thick, creamy and tangy with no food coloring or
added sugar.
Ulukaya saw an opportunity. He first started a feta cheese
business, Euphrates. His home province, Erzincan, produces one of the
most expensive and sought-after kinds of cheese in Turkey. In 2005, he
purchased a Kraft yogurt plant with a small business loan. His friends
were deeply worried that he would go broke. His attorney asked why he
thought he could survive producing yogurt at the same time and
location where a food giant had given up.
Ulukaya was gambling on the assumption that Americans would
consume more yogurt if it tasted better and were more accessible. So
after buying the company, despite all the red flags raised by his
friends, he started designing his plan. One of his recommendations to
young entrepreneurs is “Do not just keep dreaming, get out there and
start doing while dreaming.” His first executive action ran along that
line. While trying to get the plant on its feet — meaning getting the
equipment to work effectively — he said, “Let’s paint the walls.”
So, Ulukaya, along with four former Kraft employees and his
master yogurt maker friend, spent months on ladders painting the outer
walls of the factory. He remembers that at the time there was a cafe
right across from the factory that motorcyclists frequented. The husky
bikers, Ulukaya recalls, used to tease them, saying, “Look, you missed a
spot.” Ulukaya and his close associates pretty much lived at the
factory, located in a remote section of a small town. “I was and am
still a factory worker today,” Ulukaya told Al-Monitor.
Chobani’s success is
unique in the food industry for its revenues reaching over a billion
dollars in five years and acquiring 52% of market share in eight years.
Chobani is the top-selling Greek yogurt in the American market now.
Ulukaya was proven correct that Americans will appreciate a
healthy product that is affordable and reachable. He understood well
that it is less about marketing than about producing a high quality
brand. And as health consciousness increased, probiotics and high
protein natural foods became more popular, and Greek yogurt in small
cups with different flavor options widely available at convenience
stores proved very successful.
Chobani opened its first brick-and-mortar store, a
Mediterranean-style yogurt bar, in 2012 in the SoHo neighborhood of New
York City. The menu
features not only sweet creations with yogurt, but also savory options,
some of which are served with all-time Turkish favorite bagel-like “simit.”
Indeed, plain yogurt is the basis for hundreds of recipes in Anatolia
and the surrounding regions, from yogurt soups to yogurt cake and dozens
of different types of small dishes such as tzatziki.
Ulukaya says the Soho bar also serves as a testing
laboratory to see what the customers are enjoying the most so they can
refine those flavors and prepare them for mass consumption.
Interestingly, the Chobani bar does not offer the yogurt drink kefir.
Will Chobani open other branches in the United States, we wonder?
A senior official at Chobani told Al-Monitor, “Not if, but when is the
right question.”
"Chobani" means "shepherd" in Turkish. It also means
protector or guardian, and so is more meaningful than just being
reminiscent of pastoral scenes. Always wearing a comfortable smile,
Ulukaya appears to be an easygoing guy, but he has proven to be quite
stubborn when it comes to standing up for his principles. For example,
in February 2014, as one of the sponsors of US Olympic team, Chobani posted an ad inspired by the gay pride flag and Ulukaya announced that Chobani opposes Russia’s anti-LGBT laws.
Ulukaya is a food revolutionary who has managed to make
Americans crave yogurt that is also good for them. Plus, he is spreading
goodness with his wealth — both with his money and personal experiences — to people fleeing the lands where yogurt is an everyday staple.
We all can learn from his experience.
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