Chobani: Following consumer tastes, not BAU
McCain's Olivia Dickinson describes growth in three words: “Bold, strategic choices”.
“We're talking bold bets, sharp focus, but really importantly, knowing when to walk away if it doesn't serve the bigger picture,” she says.
All three came into play when she stepped into the GM of growth position at Chobani and set up a cross-functional team to pursue disruptive innovation beyond BAU.
“It was about zooming out and looking at the business, seeing not just what was happening, but more importantly, what wasn’t,” she explains. Like Lion, the challenge was BAU wasn’t going far enough at Chobani. Consumer tastes were increasingly leaning to no-sugar and other high protein food options, and it was time to step out of the classic business trap of sticking with the same things, day in, day out.
“I had to reorganise, not just as an organisation for today, but for where we wanted to get to. That meant building this cross-functional team across insights, R&D, product, finance, box packaging, within an external team still internal within the business, pulling people across from category and supply chain,” Dickinson continues. “Interestingly, when we first set it up, I thought we needed to be separated enough from the business to be focused and taken away from the busy-ness of the day jobs.”
But she learned quickly her team couldn’t be disconnected from the business, and that growth can't live in isolation. “If we're really real about it, a growth plan without that execution to flow through from the business is just an absolute pipe dream,” Dickinson says.
Chobani’s operations lead, who knew the factory inside out, became the conduit between the two-speed teams.
“When we'd work on something and it would come to fruition – and we were working really quick on what we would call sprints and missions because we talk about growth in this real momentum and energising way – that point of contact could go into the factory, could talk to our ops team, could talk to our engineers and really make sure there was this clear ‘exchange zone’. Like a relay race, we'd have this all-hands, where we'd have that handover,” Dickinson says. “There is a part of that process where both teams – growth working alongside the business – are running together, holding that baton until there's that handover point.”
A key product line realised through the new structure was Chobani’s No Sugar Added product range, which ended up generating half of all business growth in its first year.
“But outside of the numbers, that's not why I think I'd carry it with me,” says Dickinson. “We could see one in three consumers never came back for a second purchase when they were looking at these functional offers – and that for us wasn't loyalty. There was a missed opportunity in that. So we set out to create something.”
According to Dickinson, the hardest part was cutting through the noise internally, because Chobani already had an existing offer within the portfolio with similarities to the new no-sugar component.
“I knew we had to earn the right to launch that every step of the way. We would build what I'd call a safe space within a pressure cooker. I said to the team, let's give ourselves 20 weeks from when we started it to launch… if we get to 9th September and we can't answer the business-critical questions about proposition, margin, cannibalisation, portfolio, segmentation, all the questions within the business, we will pull the plug. No ego, no drama,” Dickinson says. “It wasn't just about how we make a game-changer for consumers, but how we make sure this is a smart business move.”
Dickinson paraphrases the late, great Oliver Reed's Prospero in Ridley Scott's 2000 epic, Gladiator: ‘Win the crowd, win the trust’. “That's really important. How do you shift those mindsets and as a growth leader, build those relationships, listen and lean into the challenges and the questions? Because that transformation in the thinking, execution and how that lands in results, and doing that together as a team and as a business, that is what growth is really about.”