Chobani adjusts to rapid growth
SOUTH EDMESTON – While Chobani’s Chief Marketing and Brand Officer Peter McGuinness could not confirm numbers regarding local residents losing their jobs, he did state the yogurt manufacturing company is making changes in an effort to maximize the potential of the company's two factories.
“In 2014, we will be increasing production at our Idaho factory, given its size and capability, and we will normalize production at our South Edmeston facility,” said McGuinness.
The South Edmeston plant will shift from a production schedule of two, 12 hour shifts per day to three, 8 hour shifts – a schedule McGuinness said will be in line with normal industry-shift patterns. Production at the South Edmeston plant will take place Monday through Friday. The company’s previous production schedule was seven days per week.
“This brings production in line with the factories' operational design and capacity thresholds to ensure quality, safety, and balance,” McGuinness said.
This change results in the need for fewer individuals – placed through the local temporary employment agency Staffworks – to be working at the facility in South Edmeston.
McGuinness explained Chobani will continue to work with Staffworks, but in the near term, they will be using fewer employees.
“Staffworks is aware and actively working with those impacted to place them in other temporary jobs,” said McGuinness.
Unconfirmed reports suggest between 100 and 150 temporary employees have been impacted, and that not all of those individuals were 40 hour per week employees.
According to McGuinness, the Chobani plant in South Edmeston will continue to remain the manufacturing and distribution hub for their yogurt on the east coast, which he stated is Chobani's most strategic region for reasons including higher consumption and more distribution.
The changes with the South Edmeston plant are in an effort to bring each plant to its original operational design. The plant in Idaho is newer, and has more capacity.
“As we continue to grow and expand, it's important and responsible that we optimize and balance production between and across our two plants,” McGuinness said.
Chobani's new product, Simply 100 Greek Yogurt, will be produced at the plant in South Edmeston. This is the first and only authentic strained Greek yogurt containing only 100 calories and is made with only natural ingredients.
McGuinness stated that the yogurt industry ebbs and flows, and it does have seasonal differences in demand. “It is a dynamic and competitive market,” he said. Factors include seasonality and customer orders.
This “ebb and flow” described is why temporary workers are often utilized.
McGuinness stated both community and the South Edmeston plant are very near and dear to CEO and Founder Hamdi Ulukaya’s heart, and will remain the anchor and hub.
The support services functions including accounting, human resources, customer service, and information technology will continue to remain in the Norwich offices.
He added nothing dramatic is happening in terms of the business, but that it has to grow in a healthy way. These production shifts are taking place so that there won't be more production in the South Edmeston plant than it can handle.
“Decisions like this are difficult and not taken lightly,” McGuinness said. “Chobani remains fully and unconditionally committed to the community and will continue to be a very active corporate citizen.”
Staffworks was contacted for comment regarding figures but a representative has yet to return a call.
“In 2014, we will be increasing production at our Idaho factory, given its size and capability, and we will normalize production at our South Edmeston facility,” said McGuinness.
The South Edmeston plant will shift from a production schedule of two, 12 hour shifts per day to three, 8 hour shifts – a schedule McGuinness said will be in line with normal industry-shift patterns. Production at the South Edmeston plant will take place Monday through Friday. The company’s previous production schedule was seven days per week.
“This brings production in line with the factories' operational design and capacity thresholds to ensure quality, safety, and balance,” McGuinness said.
This change results in the need for fewer individuals – placed through the local temporary employment agency Staffworks – to be working at the facility in South Edmeston.
McGuinness explained Chobani will continue to work with Staffworks, but in the near term, they will be using fewer employees.
“Staffworks is aware and actively working with those impacted to place them in other temporary jobs,” said McGuinness.
Unconfirmed reports suggest between 100 and 150 temporary employees have been impacted, and that not all of those individuals were 40 hour per week employees.
According to McGuinness, the Chobani plant in South Edmeston will continue to remain the manufacturing and distribution hub for their yogurt on the east coast, which he stated is Chobani's most strategic region for reasons including higher consumption and more distribution.
The changes with the South Edmeston plant are in an effort to bring each plant to its original operational design. The plant in Idaho is newer, and has more capacity.
“As we continue to grow and expand, it's important and responsible that we optimize and balance production between and across our two plants,” McGuinness said.
Chobani's new product, Simply 100 Greek Yogurt, will be produced at the plant in South Edmeston. This is the first and only authentic strained Greek yogurt containing only 100 calories and is made with only natural ingredients.
McGuinness stated that the yogurt industry ebbs and flows, and it does have seasonal differences in demand. “It is a dynamic and competitive market,” he said. Factors include seasonality and customer orders.
This “ebb and flow” described is why temporary workers are often utilized.
McGuinness stated both community and the South Edmeston plant are very near and dear to CEO and Founder Hamdi Ulukaya’s heart, and will remain the anchor and hub.
The support services functions including accounting, human resources, customer service, and information technology will continue to remain in the Norwich offices.
He added nothing dramatic is happening in terms of the business, but that it has to grow in a healthy way. These production shifts are taking place so that there won't be more production in the South Edmeston plant than it can handle.
“Decisions like this are difficult and not taken lightly,” McGuinness said. “Chobani remains fully and unconditionally committed to the community and will continue to be a very active corporate citizen.”
Staffworks was contacted for comment regarding figures but a representative has yet to return a call.
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