This episode is brought to you by Wondery in partnership with Dell Technologies. In honor of small businesses, we’re featuring inspiring stories of successful companies that started out small.
In upstate New York, a Kurdish immigrant wants to make his biggest dream come true: to produce the tart, custard-thick Greek yogurt of his childhood for American palates. In 2005, he buys an abandoned Kraft factory for cheap. With an ingenious financing deal, standout packaging and clever marketing, he launches Chobani — the yogurt sensation that eventually forces goliaths Yoplait and Dannon to move over.
While Chobani launched a quiet incursion, William Wrigley Jr. set out to upend the gum industry in 1893 with an improved spearmint flavor. After one misstep after another, he finally gets traction. Then the gum monopoly approaches him: join or be crushed. Thanks to a savvy advertising campaign, he blows past them to become the nation’s biggest gum purveyor.
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To inspire small business,
donors business wars and showcasing successful companies that started out small here or there inside
rational and motivational stories presented by Dell. And if you need tech advice d,
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Its march, two thousand and five in Johnston,
upstate, New York, handy you'll Kyar, is in it
office tidying his desk.
A pile of unsupported papers
tossing unwanted items into the wastepaper basket.
As at thirty four year old kurdish immigrants who grew up in Turkey. Milking
sheep on his family's farm
now he runs a small feta cheese business. He fled
a coffee stained pizza menu into the basket and looks at the next item is,
postcard for real estate firm advertised,
a recently shuddered yogurt factory, gonna
drops it straight into the trash, but
continuous is clear up the postcard
lingers in his mind,
he's, always wanted to make yogurt, but not any over. No, he
to make the tart creamy custard thick Greek yogurt that his family makes back in Turkey
He loathed, runny sugary, sweet yogurt sold in America to hear
it's horrible little better than
baby food in Cairo.
That is at the wastepaper basket
Maybe he could be now
Now that's ridiculous! He turned back to his papers,
but his eyes soon drift back to the ban. It's like the postcards calling him. He discards. The papers he's holding, gets
as navies and fishes through the wastepaper basket. He pulls the crumpled postcard from the garbage. Instead,
is it the photograph of the mouth factory. Then he calls the realtor.
I got your postcard, the one about the yogurt planted New Berlin I'd like to see it.
Four p m tomorrow perfect see there
Look I a hangs up and looked again at the postcard at the factory that
It help him realises dream of introducing America to the delights of greek yogurt. There's just one problem:
I can't afford to buy a small.
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from wondering I'm David Brown, and this is business wars to utter small businesses.
We're bringing you two special episodes of business worse presented by Dell technologies.
These episodes we're telling inspiring stories of companies that started small
overcame the odds to become household names on the last episode
We recounted how a tory and rebel brought novel products to market a tight budget. Now
we're tracing the stories of two small businesses that faced a different challenge.
King into markets dominated by huge corporations, we're talking David's up against
Goliath here and First M is troubling the greek yogurt company they caught YO play and Dennin napping
its March two thousand five hundred Euro Kyar is in the dirt parking lot of a remote factory just north
New Berlin, and should they go county New York about two
miles north of New York City. He gave
at the dilapidated yogurt factory, with its two
Cylindrical milk silo it's about this
as of one and a half football field, gray paint, is
feeling from the walls and we
kids are invading the sad looking lawns that dot the grounds across this.
It is a ramshackle bar with a couple of harlings, no pickup truck parked outside it remain.
You're, the guy, the backwoods bars he's seen in movies
swear, there's, always a fight and ever
and turns to stare when a stranger walks, yet still
hullo Kyar hasn't driven ninety miles from his home. Just to turn back, he turns back
the factory strides through the entrance,
The plant managers they're waiting for him good to meet you follow me.
The manager leads LUCA under the factory floor, where a skeleton crew,
covering the machinery with plastic
Don't mind them they're, just doing the final clean up, so we make well
aid briars yogurt here factory bill,
nineteen twenty graphs zone,
since nineteen. Twenty eight
LUCA examined the factories shining
Metallic machinery,
enough about making over to know this equipment is worth more than the factories asked in price.
He turned to the manager is equal
included in the price, yeah craft
what the hassle of unloading and not a problem,
not a problem at all few days later,
at a Johns down Pizzeria
Kyle shares is planned by the factory with a friend
it's even got most of the equipment. I'll need Luke
his power frowns areas.
This through. If crack
make money out of their factory. How do you expect to? I don't know? I don't know
I just want to try jump in the water see if I can swim
and if you drown yet
Well, it's not about the money. It's about c
how far I can get.
You hear yourself right. You're talking about
taking on Yo Play and Dan and with all their sophisticated marketing and clever merchandising and money and all add, I dont believe they're all that
When I started in business, I didn't understand, accounts didn't even know. If I was making or losing money, then I asked,
account and explain it to me, like I'm, a child,
Actually very simple people
things seem more complicated than they really are. Even if that's true,
they still got way more money and people than you, but they're. Just people, people linen
office with a lot of bureaucracy.
They have money, but they move slow. I can be quicker undotted.
Do the Cairo starts, a new company called Argo farms and goes looking for financing
He borrowed money from to banks and the Small Business administration. He also
it's a grant from the chimney go county which wants to see the factory reopen together. They
look enough to buy the factory and arm himself with half a million dollars of working capital race.
The funds is an achievement in itself, but now Hulu,
Just gotta figure out a way to make a success of it.
Its August two thousand five and on the factory floor.
Hullo is holding Argo farms first ever team meeting his
small Justin,
master yogurt maker from Turkey, plus the for former
after employees he hired to run the factory. The fact
We technician looks at his new boss. Well, why? Now,
Hulu, Kyar is ensure he's been too folk.
Dont acquiring the factory to think about that.
I just seen the electricity bills, so the first thing we do is turn off the lights
Then we re paint the outside walls. Why? Why
because I dont know what to do next, but I know the walls look horrible,
The team spends the following days: painting the factory bright wine and as they paid they bond
coming a tight knit unit ready for that.
I want your head
The team is ready. The recipe is not.
Guy knows he's only got one shot to get it right: monies to tied for Argo farms to survive a failure, and that means his yogurt got to be perfect.
The company spends months honing the recipe inching ever closer to the delicious strained. High
protein, Greek Yogurt,
LUCA envisages.
Meanwhile, he poors most of his remaining money into the design of the yogurt six outs cups. He
packaging is critical. He can't afford advertise
and he knows that starting out stores will relegate his yogurt to the least desirable place on any supermarket I'll the bottom corner. If his yogurt is to stand a chance, it's got
leap out at shoppers, the results are both like,
cups that are shorter, wider and sturdier than the average over cup.
He also uses the latest printing technology to give the cups eye catching graphics that are brighter,
then competitors making them.
Hard to miss.
Eighteen months, the yogurt recipe and cups already LUCA calls it Giovanni?
a name inspired by the turkish word for Shepard and in October,
two thousand seven, the first.
Cases are shipped to a grocer in Long Island in Europe,
spend the next week on edge desperate for news about how Giovanni selling every day drags on forever then finally
The grocery store calls LUCA can't contain himself.
Tell me: how did it so we sold out? We want another three hundred geishas, that's great,
But but who's buying it, the same people are or different people watch it matter
Different people are buying, it means they like the packaging. If it's the same thing
Bullied, means they like the product and will keep buying it. Then I've got good news. The same people are buying it and they're telling their friends to buy it too
encouraged Ukiah and his sales Chief Kyle Brian sit down to plan next steps.
And you look is already aiming high.
I want your body in big stories like shop right.
Moscow, O Brien
His head, hardly places,
that charge sly fees
paid and beyond their shells? We should start in specially stores that dont George slot fees and
from there
No, no! No! I want your body to be available to all.
Quality yogurt shouldn't be a privilege. How much
are these slot fees? Well, us
where market chain like shop right my charge north of one hundred thousand dollars. You can't afford it LUCA thanks for a moment,
There must be away, and then it hits him
week later and Hulu Kind, o Brien are in shop rights. New Jersey headquarters across the table. Shop rights by
scoops and other spoonful of Giovanni into his mouth.
This is good stuff. I, like you,
packaging and the suggested retail price of a dollar twenty nine tells me
a special without pricing amount like most craft branch,
to carry it nor two hundred and eighty stores, so we're looking at a slot vii of a hundred and fifty thousand
Brian shoots Lucretia, and I told you so look: Hulu COM,
turns to the buyer.
We don't have that much money.
We pay in yogurt. The buyer looks confused
ass. Yogurt! Yes,
PS until you ve sold enough to cover the fee
happens. If your yogurt doesn't sell, we buy it back
I thought you said you had no money,
If you got no money in your yogurt doesn't sell them. How do I recover the slot, for you owe us then
you get our factory the by
stairs mouth a you Ukiah for a moment and then come
is himself wow,
all right, then we'll
but Joe body on shelves for weeks later shop rights by your call.
LUCA takes the car with o Brien. It aside, I got your speech
phone Kyle's. Here too,
Maybe I don't know what kind of crap you put into those cops, but my God, we cannot keep them on our shelves. You're yogurt taught stuff. We need more pronto
call LUCA turns you, o Brien, with a serious look on his face
changes. Everything I know will be another big stores in no time. That's not what I mean
The challenge was selling Giovanni, but it's.
Snark
Ok, I give up what is a challenge making enough
If we're selling this fast, the big companies will notice is soon. We ve got
but production before the big eyes grabbed the market from US
from that moment on Argo Farms moves fast, asleep,
accelerate it hikes production
from ten to a hundred.
In cases where we, then it borrows the money to expand the factories capacity. Fourfold
with its money tied up in the race to expand our go far
My spine, low cost ways to spread the word about Giovanni it
to social media, engaging with everyone who mentioned its brand next, it creates the show mobile
truck at Rome, donation, handing out free Giovanni and that
I will be your team soon discovers that Giovanni's appeal goes beyond the stereotypical yogurt eater its September. Twenty ten
in Atlanta, people are lining up at that show Moby over free over
the front as a woman and her pumped up thick neck boyfriend. After them,
and takes her cup. Their server offers one to her boyfriend. Now, thanks.
Yogurt women's food,
you sure Giovanni's not like most yogi. It's got twice the protein
and no fat really yeah
who are we strain our yogurt, so it's got less sugar view
carbohydrates and more protein
You sure you don't want to try it
Gimme one by the time, the
Your mobile finishes its coasts to Coast Tour Giovanni,
taking the yogurt isles by storm by twenty eleven Argo
Farms is producing a million cases a week.
More than six hundred million cups of Giovanni a year that year.
Bonnie claims eighteen percent of America's four point: three b
billion dollar yogurt market its lightning.
Fast rise leaves YO play and dantin scrambling to catch up.
Today, Giovanni so well established that you look tired. Now runs an incubator, supporting small
food startups, but small
companies have been getting the jump on industry giants for years, sometimes
edges novelty, but it can
so be sheer persistence and that
was the case with one of them.
S, known brands, honour Rick, lace,.
Hey, I'm David Brown, host of business wars and, together with other topic,
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it's late, eighteen, ninety, three and in Chicago a grocer is loading canned peaches aren't we shells
Where do you want a moment? Take your time Arthur the growth
recognises that voice its
William Wrigley Junior. He turned
see the broad shouldered Wrigley standing with his thumbs halved into his waistcoat pocket
Stu Wrigley pleasure to see you how's business go go
In fact, I've got a new chewing gum to show you the grocer perks
time, Wrigley Drop by you just created a gum called juicy fruit. Now is the most
Peter Gummy cells, where
Mr Wrigley offences. Good is juicy fruit. I've place in order Wrigley.
Builds a five cent packet of gum from his waistcoat on the rat.
Are the words weeklies Spearmint, the storekeeper looks
crestfallen, no, no, not spear mad. I dont want spearmen gum.
Time I stocks on the entire store wreaked of it spearmen
Just to strong people, don't care for it. Wrigley unwrapped the packet
offers a stick to the grocer. My gums, different mother
make spearmint leaves in with their chicken gum base. I don't
I use a central oil which creates a mile
brushing flavour just try. Jim
really the grocer, takes the stick and pops it into his mouth. His eyes widened the coup
crisp, minting sensation spread through his mouth. It's nothing
likely overpowering. Spearmint gums he's tried before you
This is different pleasant. Even
still. I just don't think my customers will go for it. Wrigley doesn't flinch.
He's got a proven method for nudging, doubtful retailers and placing orders premiums.
Before you decide
Let me tell you about the deal's I can offer.
By one box for eighty five cents and I'll give you a high quality Iroquois hatchet periphery, there's more. If you buy
twelve boxes I'll give you a pure aluminum coffee, Perker later Wrigley sent,
is the store keepers, resistance crumbling.
As he always says, people can't resist getting something for nothing.
If you want a real steal, a video vice
sixty boxes of my gun for fifty dollars at in return, you,
at a solid oak desk
It's a wonderful desk with pigeonhole self, locking docks in compartments where your books,
I use one myself, it
Stu Lifetime and your queen
ten dollars, profit on the gum, for you say moment,
later, Wrigley leaves the store with fifty
our order in the bag,
but why is giveaways deliver sales, its inaction
the way to sell five cent huge sure when
takes the right premium. Winds over retailers sales boom when he gets IRAN
finds himself saddled with a warehouse pool of unwanted premiums and nursing a laws. So
even as sales rise wriggles scraping by
most of his money is locked up in warehouses bill with premiums. His office is still a cramped store room,
and like most small business man he's a man.
Of many hats he's not
Thus the owner he's the chief salesman, the marketing director, the production manager, the bookkeeper Andy Packs, the boxes to
over the next few years through sheer.
Determination and hard work here,
slowly makes headway. Trouble is
Profits are razor, then the days
small time gum makers can scrape by in peace or ending
its spring eighteen, ninety nine and in an and in an restaurant, Charles Flint, is why
and dining Wrigley.
Flints a Wall Street financier a champion for the best
trend in business monopolies.
He's already masterminded a mega merger of rubber companies to create? U S. Rubber now
about to do the same for chewing gum by Chris.
The American Chicken Company, he swore
the wine and his glass and explains his plan to Wrigley.
The top six chewing gum companies have already agreed to join the trust,
You should sell your business to the trust as well.
You have done a good job.
I'm? U cashed in regulation.
Back in his chair,
thanks
I'm not interested flits eyes narrow
MR regularly. Let me speak plainly:
It forms American Chico will be by far the biggest chewing gum company of all it will
all the big brands and most of the factories, though
outside it stand not a chance. America,
shackle will have all the benefits of monopoly status, efficiency
control of raw material prices, no need
spend excessively on advertising and the ability to extract maximum profit.
Sir. This is your chance to become wealthy, missed
Wrigley sees it
Wrigley lights, a cigar and looks
plant in the eyes
well thanks for the invitation, but I prefer
the new things my way
very well, Mr Wrigley, it
After all, your funeral
in June eighteen, ninety nine flints mega merged,
goes ahead soon. American chicken company,
bearing down on its rivals it heads
Mexico and gains near total control of the chicken latex needed to make chewing gum
It seems inevitable the whole doubts will fall, but
Wrigley he's not going down without a fight and he's
quietly amassed a hundred thousand dollar battle plan, wriggling plan
to spend it on advertising next
the four hundred thousand dollars american chicle, spends on advertising every year. Wrigley sad budget is small, but rig least not thinking National
he puts all his chips on one place.
New York City. That
his gun market of all in nineteen o too. He bombards the five boroughs with posters
or signs billboards in newspaper ads and new
workers, egg
or them all Wrigley. Add blitz
doesn't even register
its nineteen o three
LISA Chicago Boxing Club with a friend as they stand.
On their gloves, Wrigley mentions his failed bid to break into the big apple is branded shocked. He should be
One hundred grand in nineteen o three is equivalent to six million dollars. Today,
I'm sorry. It's been so disastrous. Wrigley shrugs, I don't care
broke before and I never lost a night's sleep over it.
I want to save up and try again our I write a box
in nineteen o six Wrigley
thanks, another hundred thousand dollars in New York at blitz, but this time is now
going after the big apple instead he's looking upstate to Buffalo.
Rochester and Syracuse. So the three cities are under siege everywhere. People go, Wrigley is brand haunts them. It hangs in store windows. It lurks in newspapers
it rides with them on street cars and looked down on them from billboards,
It's less a campaign of persuasion,
a battering ram shattering all resistance and abstained New York,
doesn't hold out for Long
sales of Wrigley Spearmint Sore within months Wrigley amassed another quarter million dollars for another run at the Big Animal
just as he's ready to launch disaster strikes
its October, nineteen o seven and there
turmoil on Wall Street. A botched attempted
violate the market has sparked panic and banks are collapsing as the economy TAT
Wrigley Concerned Associates, gather in Chicago
Mr regulate now is not the time to launch a campaign in New York other com
or cancelling thereat. We should do the same. Wrigley shakes his head
no, no, we press on it
times people cling to small luxuries like chewing gum. Besides,
How much our newspaper ranch now down
to a quarter of what they were before. The panic. Wrigley smiles
then I'll be getting a million dollar campaign for a quarter of the price. Soon after Wrigley ads
blanket New York City.
Also ensures retailers. Stock is gum by mailing them coupons for a free by
of Wrigley Spearmint, so when
Yorkers want gum, Wrigley,
is always in easy reach. Within a year sales
Wrigley Spearmint Gross six to more than one million dollars a year, but rather than pocket the profit
Lee, buys more adds which first
fuel sales and he d
it again and again.
By nineteen. Eleven. The American shook a company is reeling, it thought it had the gun business locked up. Instead,
Wrigley come from behind and turned Wrigley Spearmint into the nations favorite chew.
Its winner, nineteen eleven and it really
Chicago offices, a newspaper reporters
a profile? America's new king of gum.
Mr Wrigley, you now control sixty percent of market. What is this
of your success over American Jekyll Wrigley smiles, simple advertising
You see the advertising is like a locomotive. You gotta, keep shovelling coal into the engine. Wants you
stoking the fire goes out.
Oh sure,
train runs on its own momentum for a while, but it'll.
Actually slow down,
it'll come to a dead stop for me,
I just never let that fire go out.
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Transcript generated on 2020-05-07.