Chobani CEO says pulling IPO was one of the best decisions company has made
Chobani says it has no pressure to go public
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Chobani's decision to pull its initial public offering was one of the best decisions the company has ever made, CEO Hamdi Ulukaya told FOX Business.
The purveyor of Greek-style yogurt has been a fully private company since being founded by Ulukaya in 2005. Even though it has remained privately owned, Chobani has been able to effectively compete with other major players in the sector, according to Ulukaya.
Last September, the company pulled plans to go public on the Nasdaq.
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"We pulled it out… not that we were worried that it wouldn't be successful. We just didn't think that was good for Chobani," Ulukaya said.
Hamdi Ulukaya, founder and chief executive officer of Chobani LLC, speaks during the Clinton Global Initiative annual meeting in New York on Tuesday, Sept. 20, 2022. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
After internal discussions, the company decided it was not the right time to list on the exchange given the market conditions and geopolitical issues such as the war in Ukraine. Although plans to go public are not fully off the table, Ulukaya made it clear there was no pressure "from any dimension" to do so.
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"We have this comfort that we don't have to do anything," he said.
Although the chief executive still considers the company a startup, he said it has built up a strong business and already has the capabilities, infrastructure and reach to successfully compete against other major players in the field.
Chobani yogurt sits on a grocery store shelf on Nov. 18, 2021 in New York City. (Spencer Platt/Getty Images / Getty Images)
To set itself apart from competitors, Chobani has significantly invested in its infrastructure and plants in order to create all products in-house and oversee its entire production.
Chobani is one of the few examples of a startup that has been able to "stay independent and build infrastructure to change the way that food is made in this country," Ulukaya said.
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Ulukaya said he has the ambition to take the company to the next level. He noted that the only reason that it would go public is "to feel the growth of the company in a different dimension."
If it accelerates the company's growth, the company will consider it.