Chobani market share sours as rivals find recipe for success

Greek yogurt is a tougher business than it used to be.

Chobani founder Hamdi Ulukaya is credited with introducing the US mass market to so-called Greek yogurt, which is thicker, creamier and healthier than the variety long peddled by Yoplait and Dannon.

Chobani’s launch spurred an explosion in sales that sent it to 48 percent of the Greek yogurt market in 2013, up from just 2 percent in 2005, according to Nielsen data.

But Chobani’s big competitors have since caught on, forcing it to fight for its share of the market.

After hovering above the 18 percent level for a year, its share of the overall yogurt business began falling last July, going as low as 16.3 percent, according to Nielsen.

During the 12 weeks ended Nov. 22, Chobani’s sales dipped 1 percent, despite a rash of product introductions that were meant to goose sales, notes Kurt Jetta, CEO of retail consulting firm TABS Group.

That’s partly because new product lines including Chobani Oats and Chobani Kids flopped, according to Jetta. “They never embraced the reality that the market had changed, the category was maturing and that a shakeout was inevitable.”

While Jetta says Chobani’s sales could fall 10 percent this year, its market share is recovering as it aims for a single-digit increase, sources said.