PepsiCo, Inc. (PEP), Goldman Sachs Group Inc (GS), Mondelez International Inc (MDLZ)–Greek Tragedy: Chobani’s Tasteless Recall

Mondelez International Inc (NASDAQ:MDLZ), when it was still under the Kraft banner, had a Greek yogurt offering — Athenos — but it gave up after two years. That indicates some intense competition, and it doesn’t bode well for Chobani to make a misstep.

Who benefits?
Apparently only a few Chobani customers got sick, but that’s not an excuse. In addition, Chobani said only 5% of its yogurt products were affected. Still, nobody should get sick, and none of the yogurt should be moldy.

Although many grocers and brands occasionally have to recall products, it’s important to deal with food problems swiftly and fully. After all, this can smear reputations as well as an even worse outcome: making tons of consumers dreadfully ill.

Chobani competitors get a tip and a possible benefit here, though. One is to deal with recalls as fast as possible, and get the word out so their customers know exactly what’s going on. The second lesson, of course, is more like a boon. When a competitor screws up, rivals find it much easier to grab some market share — a positive for their businesses in a growing market.

The article Greek Tragedy: Chobani’s Tasteless Recall originally appeared on Fool.com is written by Alyce Lomax.

Alyce Lomax has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs (NYSE:GS) and PepsiCo and owns shares of PepsiCo.

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