Chobani CFO testifies in Washington D.C.
WASHINGTON D.C. – Chobani Chief Financial Officer James McConeghy spoke before the U.S. House of Representatives Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access, on Tuesday afternoon as part of a four person panel of witnesses for a hearing entitled “American Competitiveness Worldwide: Impacts on Small Businesses and Entrepreneurs.”
“Today’s hearing covers a topic which I believe is of the utmost importance – restoring America’s competitiveness,” stated Chairman Tom Rice in his opening statement. Continuing, Rice elaborated explaining how he believes tax reforms and a reduction of burdensome regulations could help.
The purpose of hearing was to help provide insight for policy makers as to what it takes for American businesses to be competitive in the modern global market as well as receive suggestions from business leaders on how they can aid small businesses.
During the hearing, NYS Representative Richard Hanna introduced McConeghy to his fellow congressmen.
“I’d like to report that I am not just pleased to represent you here, but pleased to be a customer,” he said.
Hanna further commended Chobani for its rapid growth and its invigoration of upstate New York dairy farms and communities, calling it a uniquely American story.
“The Chobani story is one that could only happen in America,” McConeghy agreed. “Where else could a Turkish immigrant transform a shuttered factory into a thriving food manufacturing business in just a few short years.”
McConeghy continued with a brief summary of the Greek yogurt company’s success as it soared from nothing into a global entity accruing over $1 billion in annual sales. McConeghy also noted the disparity in employment numbers between the companies initial five to its current 2,600 plus.
While the success of Chobani is unquestionable, McConeghy said there are four major challenges which the Greek yogurt company now faces, including the absences of a United States Food and Drug Administration standard of identity for Greek yogurt, geographic indicators in international trade, Trans-Pacific Partnership trade negotiations and their effect on dairy product trade with Canada, and tax reform.
McConeghy noted that the current FDA standards of identity are outdated and do not account for the unique manufacturing processes used to create Greek yogurt. According to his testimony, any product which meets the current definition of a yogurt can be branded as a Greek yogurt, which potentially interferes with nationwide nutrition programs. One of the most notable features of Chobani Greek Yogurt is its extremely high protein content, which on average is three times greater than traditional yogurt.
“Greek Yogurt is to yogurt as sour cream is to milk,” he said.
McConeghy also discussed issues which Chobani recently ran into while attempting to expand into Canada, discovering that with a 237.5 percent duty on most yogurt-based products, importing simply was not in the cards. Attempting to overcome this barrier, Chobani set about buying land in Canada to build a manufacturing plant which was in turn thwarted by competitors. During the hearing, McConeghy asked that Congress use the Trans-Pacific Partnership to help mitigate Chobani’s Canadian quagmire.
McConeghy also indicated Chobani’s support of tax reform.
“Today’s hearing covers a topic which I believe is of the utmost importance – restoring America’s competitiveness,” stated Chairman Tom Rice in his opening statement. Continuing, Rice elaborated explaining how he believes tax reforms and a reduction of burdensome regulations could help.
The purpose of hearing was to help provide insight for policy makers as to what it takes for American businesses to be competitive in the modern global market as well as receive suggestions from business leaders on how they can aid small businesses.
During the hearing, NYS Representative Richard Hanna introduced McConeghy to his fellow congressmen.
“I’d like to report that I am not just pleased to represent you here, but pleased to be a customer,” he said.
Hanna further commended Chobani for its rapid growth and its invigoration of upstate New York dairy farms and communities, calling it a uniquely American story.
“The Chobani story is one that could only happen in America,” McConeghy agreed. “Where else could a Turkish immigrant transform a shuttered factory into a thriving food manufacturing business in just a few short years.”
McConeghy continued with a brief summary of the Greek yogurt company’s success as it soared from nothing into a global entity accruing over $1 billion in annual sales. McConeghy also noted the disparity in employment numbers between the companies initial five to its current 2,600 plus.
While the success of Chobani is unquestionable, McConeghy said there are four major challenges which the Greek yogurt company now faces, including the absences of a United States Food and Drug Administration standard of identity for Greek yogurt, geographic indicators in international trade, Trans-Pacific Partnership trade negotiations and their effect on dairy product trade with Canada, and tax reform.
McConeghy noted that the current FDA standards of identity are outdated and do not account for the unique manufacturing processes used to create Greek yogurt. According to his testimony, any product which meets the current definition of a yogurt can be branded as a Greek yogurt, which potentially interferes with nationwide nutrition programs. One of the most notable features of Chobani Greek Yogurt is its extremely high protein content, which on average is three times greater than traditional yogurt.
“Greek Yogurt is to yogurt as sour cream is to milk,” he said.
McConeghy also discussed issues which Chobani recently ran into while attempting to expand into Canada, discovering that with a 237.5 percent duty on most yogurt-based products, importing simply was not in the cards. Attempting to overcome this barrier, Chobani set about buying land in Canada to build a manufacturing plant which was in turn thwarted by competitors. During the hearing, McConeghy asked that Congress use the Trans-Pacific Partnership to help mitigate Chobani’s Canadian quagmire.
McConeghy also indicated Chobani’s support of tax reform.
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