Download - Dairy Product Trends and Innovation in 2016
DAIRY PRODUCT TRENDS AND INNOVATION
Southern Dairy Conference March 8, 2016 Cheryl Hayn
Checkoff Builds Demand for Dairy Products
Western Dairy Center
• University of Minnesota
• South Dakota State University
• Iowa State University
Wisconsin Center for
Dairy Research
Southeast Dairy Foods Research
Center
Northeast Dairy Foods
Research Center
Midwest Dairy Food Research
Center
• University of Wisconsin Madison
• Cornell University
• North Carolina State University
• Mississippi State University
• California Polytechnic State University
• Utah State University California Dairy
Research Center
Fluid Milk Yogurt/
Cultured Dairy Products
Other Dry Ingredients
Whey Ingredients
Milk Protein Ingredients Cheese
• Six Leading Edge Scientific Dairy Research Centers Offer Comprehensive Support
• Number of research projects in the pipeline
• SEDRC headed up by Dr. Mary Ann Drake
Agenda Ø Macro U.S. Demographic and Societal Forces Driving Trends Ø Consumer Trends Ø Dairy Trends and Innovation o Milk and Dairy Beverages o Yogurt o Cheese
MACRO DRIVERS OF TRENDS
Changing Demographics and Family Dynamics
Increased U.S. diversity By 2030…
• 20% over age 65 • 22% Hispanic • 13% African American • 10% Asian/Other Race • 16% Foreign-born
Single parent
Mom as breadwinner
Blended families
More households are:
use smartphones to decide whether to visit businesses
Technology Explosion: Altered Paths to Purchase
own a smartphone
64%
say mobile payment is highly important for restaurants
30%
of shoppers’ journeys start online
67% 21%
Source: Pew Research Ins1tute, Technomic Consumer Restaurant Brand Metrics 6
Innovation: Demand for New Ideas on the Rise
Three in four Americans Feel Innovation is ‘an easier/faster way of doing something’ YET, consumers feel new developments are going too fast • Testing isn’t adequate • 54% consumers say greed/money is the real motivator
behind the innovation
Implications: Opportunities abound within dairy as consumers become more and more open to experimentation (taste/flavors, packaging, usage, etc.) Yet, it’s important to convey to consumers “shared values”
Instant Gratification
We are connected 24/7
Feel ‘it is important to be reachable wherever I am’.
2 in 3 Americans
Implications: • From a product standpoint, think about dairy availability everywhere
• 24/7 access is imperative. Be equipped to give the information they seek or need at all times.
Resources and Sustainability
As consumers face scarcities of resources and increasing cost pressures,
68% of Americans expect “brands and
companies to be environmentally responsible these days”.
Implications: • Be transparent – ethical and environmental credentials
are increasingly being scrutinized by consumers.
A FEW CONSUMER TRENDS
Consumers’ Fascination with Food Is Growing
They value the food experience and want the world to know
Focus on Health & Well-Being My most recent restaurant meal was healthy.
It’s important to feel good about the foods and beverages I put into my body.
54% 60%
2012 2014 of consumers agree 65%
Source: Technomic Consumer Trend Report Series, 2015 12
Natural and Transparent Brands Win Consumers
68%
Socially Responsible
71%
Environmentally
Responsible
84%
Product Transparency
65%
Locally Made
78%
Natural
78%
Brand I’ve Always Used
How important is it that the retail brands you buy are. . .
Source: Technomic Food with a Story, 2015
Protein Continues to Grow in Importance
54% Adults seeking more protein in their diet1
69% Adults prefer to add protein from foods that have it naturally1
25% Adults look for protein on Nutrition Facts label2
1 Hartman Health & Wellness 2015 2 NMI 2014
ü Muscle
ü Energy
ü Weight
Free-From Foods Gaining Presence FREE-FROM FOODS GAINING PRESENCE
GROWTH IN CLAIMS
gluten free
no allergens
sugar free
gmo free +101%
+43%
29%
+17%
dairy free +16%
no additives +9%
fructose free +3% Source: Innova
DAIRY TRENDS AND INNOVATION --- MILK
+27% IN SERVINGS AT QUICK SERVE RESTAURANTS
(2010-14)
Milk Growing in Non-Traditional Ways
+58% IN OCCASIONS AT HOME & AWAY
(2010-14)
+17% IN DOLLARS IN EACH OF LAST 3 YEARS AT RETAIL
READY-TO-DRINK SPECIALTY COFFEES
Milk has Growth Areas at Retail With Opportunity to Further Leverage
When additional benefits are incorporated into milk, sales grow
“VALUE-ADDED” MILKS GREW 20% OVER LAST 3 YEARS
Source: IRI custom DMI milk database; milk concept tests
Lact
ose-
Free
Protein Glass
Refuel Non-Homogenized
Gra
ss-fe
d O
rgan
ic
Omega
Added Value Milk
• Higher protein
• Less sugar • Lower
calories • Lactose-free
Tea Lattes Inspired by Coffeehouses
Celestial Lattes • Dirty Chai –chai spiked with espresso • The Godfather –chai with espresso and cocoa • Mountain Chai –chai with ginger, cardamom and
cloves • Matcha Green – matcha green tea powder
20
Argo Tea • Chai • Earl Grey Vanilla Crème • Green Tea Strawberry Crème
QSR Chains Are Featuring Tea Lattes – Hot & Frozen
Chocolate Tea Latte Tea combined with our Special
Dutch™ chocolate powder, steamed non-fat milk and foam
Frozen Spiced Chai Spiced Chai Is Mixed With Milk, Ice Then Blended Smooth, and
Topped with Whip Cream
QSR Chains Are Adding RTD Iced Coffee Beverages • Mocha, vanilla and caramel • 10-ounce or 32-ounce plastic bottles
22
Similar to Starbucks RTD Iced Coffee Beverages
Indulgently Flavored Milk
23
Prairie Farms • Chef-inspired
flavors • Dark Chocolate
Truffle • Sea Salt
Caramel • Vanilla Chai
Latte
Promise Land • Mint Chocolate Chip
QSR Chains Feature Indulgent Lattes
24
Campfire Mocha Cooler
Chocolate & Marshmallow Choco Loco
Cookies ‘N Crème Mint Chocolate Bomb
Innovative Milk Products Across the Globe
Japan • Fragranced
milk for scent-sensitive consumers
• Subtle aroma of apple or peach but without the taste of either
Singapore • Cereal and milk in one
beverage
25
DAIRY TRENDS AND INNOVATION --- YOGURT
26
27
Source: USDA NASS
4,757
0 500
1000 1500 2000 2500 3000 3500 4000 4500 5000
198
199
199
199
199
199
199
199
199
199
199
200
200
200
200
200
200
200
200
200
200
201
2011
20
120
120
1
U.S. Yogurt Production (Million Lbs.)
USDA NASS Yogurt Produc@on 2015 YTD : +3.2% vs. YA
Long-Term Growth in Yogurt Production
0.2 3.5
6.3 7.3
11.4 14.9 15.0 15.8
18.3 18.3 18.7
23.8 23.8
26.2 27.1
28.6 29.5
36.3 38.1
44.0 46.4 47.3 48.4
51.0 57.4
62.7
India South Africa
Japan China
Russia United States
Mexico Taiwan
Australia New Zealand
Greece Norway
Czech Republic Ireland
Germany Turkey
Switzerland France
Denmark Portugal
Austria Sweden
Saudi Arabia Finland
Netherlands United Arab Emirates
24.2
12.1 9.0
4.0
Europe Tot Americas Africa & Middle East
Asia-Pacific
U.S. Yogurt Market has Room to Grow Relative to Other Countries
Source: Datamonitor Database
Annual Per Capita Consumption (lbs) 2014
Average per person yogurt consumption is 14.9 lbs in U.S.
28
Greek Still Expanding – Now 36% Category
3,171 mil pints
3,199 mil pints
3,367 mil pints
3,337 mil pints
3,239 mil pints
TOTAL YOGURT
GREEK YOGURT
183 mil pints
738 mil pints
429 mil pints
1,081 mil pints
1,190 mil pints
RETAIL YOGURT MARKET
2010 2011 2012 2013 2014
QSRs Are Now Offering Greek Yogurt • Starbucks Offers 3 Greek Yogurt Parfaits
30
Dark Sweet Cherry Fresh Berries & Honey
Strawberry
Greek Yogurt Adds Seeds/Grains
Yoplait Plenti • Oats, flax and
pumpkin seeds
31
Chobani Greek Yogurt Oats
• Up to 10 grams whole grains
• New flavors added in Aug 2015
Powerful Yogurt • Fruits, grains and
seeds • Targets males
Stonyfield Farms
Super Seeds • Softened Flax
Seeds
Chobani Adds Chocolate Added to New Yogurt
32
Vanilla Yogurt with Honey Roasted Nuts, Peanut Butter Clusters and Milk
Chocolate Chunks
Coffee Yogurt with Biscotti Pieces and Chocolate
Greek Yogurt Incorporated Into Other Foods
33
Yogurt with Vegetables Found Around the World
Australia Yummia Yogurt • Layered yogurts with fruit and
vegetable pieces at the bottom • Carrots, Beetroot and Sweet
Potato
34
U.S.: Stonyfield Farm • Kids’ yogurt with vegetables • Beets and Spinach
Yogurt with Innovative Flavors
35
Stonyfield Farm • Gingered Pear Canada: President’s
Choice • Drinkable caramel coffee
yogurt shots
Chobani • Pumpkin Spice • Plum (limited edition)
DAIRY TRENDS AND INNOVATION --- CHEESE
36
Per Capita Cheese Consumption has Nearly Tripled Since 1970
37
33.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
1970
19
71
1972
19
73
1974
19
75
1976
19
77
1978
19
79
1980
19
81
1982
19
83
1984
19
85
1986
19
87
1988
19
89
1990
19
91
1992
19
93
1994
19
95
1996
19
97
1998
19
99
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
Total Cheese – Per Capita Consumption (Lbs.)
Source: USDA NASS
2013 data is preliminary.
11.4
Source: IRI DMI Custom Cheese Database, Total U.S. Multi-Outlet + Conv.
57.8 55.6
53.8 53.6
52.2 46.5 46.1 45.9
43.4 42.8 42.3
39.9 39.0
37.7 36.6 35.9 35.3
33.7 33.3
26.7
France Iceland
Luxembourg Germany
Finland Switzerland
Italy Estonia
Sweden Netherlands
Austria Cyprus Norway
Israel Czech Republic
Lithuania Latvia
Belgium United States
Canada
26.0 25.4 25.1 24.7 24.7
22.3 21.2 21.2 20.7 20.5
17.9 15.9
14.8 14.8 14.6
13.2 10.4 9.3
7.9 6.8
Australia Hungary
Poland Argentina
United Kingdom Slovakia Portugal Croatia
Egypt Spain Chile
Turkey Ireland
New Zealand Russia
Uruguay Iran
Ukraine Brazil
Mexico
Cheese Per Capita ConsumpRon by Country (Lbs.) – 2012
Asian countries such as China and Japan are listed at under 5 pounds of cheese per capita.
Room to Grow U.S. Per Capita Cheese Consumption
Room to grow
New Forms of Snacking Cheese
U.S. Burnett Dairy: Spaghetti-style format of low-moisture part-skim mozzarella
U.S.: Mr. Cheese O’s • Crunchy on-the-go real cheese snack • Four flavors
Snacking Cheeses Packaged In Side-by-Side Containers
Borden • GOOD2GETHER snack trays
combine real, natural cheese and crunchy mini-twist pretzels
Sargento • Pairs cheese with
roasted nuts and dried fruits
Snacking Cheeses Found at Starbucks
Cheese & Fruit Bistro Box Creamy Brie, bold Gouda, two year‐aged Cheddar
Protein Bistro Box
White Cheddar cheese
Pinwheels Bistro Box Prosciutto and mozzarella are
swirled together
Retail Cheeses Get Fiery!
Japan Introduced a Cheese To Improve Liver Function after Beer Drinking
• Cheese snack that helps liver function recovery after drinking alcohol, specifically beer
• Two flavors — ginger and soy sauce
• Enhanced with the amino acid ornithine
In Summary • Consumers are constantly looking for new and different • How can we tap into technology trends? • Make dairy beautiful and easy at mealtime • Value-added milk products are getting the attention of consumers
• Transparency, food safety key • We all must tell the farm story • But best told by dairy farmers themselves
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