Value Proposition
by Julie Cook Ramirez
Processors answer the call for milk products with added health benefits.
Few people would argue
that milk really does do a body good. That’s
fine, but the fact remains that we live in a society where people
consistently want more out of the products and services they buy.
So while no one is about to deny that milk retains a
healthy connotation in the minds of most consumers, those same consumers
are now demanding that the original healthy beverage become even healthier.
Apparently, it’s no longer enough merely to be a good source of
calcium and protein; today’s milk is expected to assist consumers
with resolving various health issues, from high cholesterol to heart
disease to insomnia, all the while offering great taste and convenience to
an increasingly on-the-go consumer.
“There is knowledge and respect amongst
consumers that milk is a naturally nutrient-rich product,” says Gail
Barnes, vice president, fluid innovation, Dairy Management Inc. (DMI),
Rosemont, Ill. “That being said, consumers’ lifestyles are
really changing and they are placing new demands on their bodies. That
takes us into the whole area of functional products, where they expect an
additional benefit.”
After years of trying to earn back share of stomach
taken away by soft drinks, juices and other beverages, milk processors are
finally seeing a light at the end of the tunnel, in large part due to the
great strides made in out-of-home consumption channels, specifically
schools, vending and convenience stores. Thus, they aren’t about to
let this ripe of an opportunity pass them by. As a result, a number of
processors have rolled out innovative new products, designed to give the
consumer added benefits, enhanced flavor and optimum portability.
San Antonio-based Promised Land Dairy Distribution
Inc. recently introduced Your Ultimate Milk (Y.U.M.), a fat-free offering
enriched with plant sterols, a natural plant extract present in most fruits
and vegetables and clinically proven to lower LDL (“bad”)
cholesterol. Specifically, studies have shown that consuming foods
containing at least 0.4 grams per serving of plant sterols twice a day, as
part of a diet low in saturated fat and cholesterol, may reduce the risk of
heart disease.
Sold in glass quart bottles in Fat-Free White,
Fat-Free Chocolate, and Fat-Free White Chocolate varieties, Y.U.M. is the
first plant sterol-containing milk to be sold in the United States. It is
designed to appeal to health-conscious men and women, typically over age
35, who either want or need to lower their cholesterol levels.
TOP 10 INDIVIDUAL WHOLE MILK BRANDS* | ||||
$ Sales (In Millions) |
% Change vs. Year Ago |
Unit Sales (In Millions) |
% Change vs. Year Ago |
|
Total Category | $2,947.1 | -6.0% | 1,142.3 | -4.4% |
Private Label | 1,846.3 | -7.4 | 726.6 | -4.5 |
Horizon Organic | 50.0 | 14.6 | 12.0 | 5.1 |
Borden | 46.1 | -6.8 | 15.9 | -8.1 |
Lactaid 100 | 34.4 | 9.1 | 9.4 | 7.0 |
Prairie Farms | 30.5 | 7.6 | 12.9 | 9.4 |
Pet | 29.6 | -5.1 | 13.2 | -4.8 |
Organic Valley | 28.1 | -5.8 | 10.2 | -7.7 |
Dean’s | 25.5 | 34.7 | 6.6 | 24.6 |
Tuscan Farms | 25.1 | -0.9 | 11.5 | 2.4 |
* Total sales in supermarkets, drug stores and mass merchandisers, excluding Wal-Mart, for the 52-week period ending January 28, 2007. SOURCE: Information Resources Inc. |
Turbo-Charged
In San Francisco, Dreamerz Foods Inc. has tackled one
of the most widespread problems facing Americans today: difficulty
sleeping. Citing data from the National Sleep Foundation’s 2005
“Sleep in America” poll, Dreamerz reports that 75 percent of
American adults suffer at least one symptom of a sleep problem. Just under
half of respondents said they have a good night’s sleep “every
night or almost every night.” And the majority of consumers are not
comfortable relying on prescription sleep aids.
“We’ve heard repeatedly from people that
they don’t want to take pharmaceuticals because of the side effects
and the potential for addiction,” says Amanda Steele, Dreamerz
founder and chief executive officer. “There haven’t been a lot
of natural solutions for making sleep part of a healthy lifestyle, so there
was a definite opportunity to bring consumers a product that has some
efficacy behind it that tastes wonderful and can be a part of a bedtime
ritual of relaxing before you go to sleep.”
Steele and her team came up with the concept of
Dreamerz, a milk-based beverage containing added ingredients that promote
relaxation. Specifically, Dreamerz contains 0.3 milligrams of melatonin, a
naturally occurring hormone that studies have shown to aid in sleep, and
lactium, a hydrolyzed milk casein clinically proven to promote relaxation,
in addition to milk’s naturally-occurring tryptophan, which has also
been shown to aid relaxation and sleep.
Since restless consumers have long turned to a glass
of warm milk to help relax them enough to fall asleep, Steele says they
were very open to the idea of a milk-based product that was specially
formulated to help them catch their Z’s.
“Milk is something that doctors and mothers have
prescribed for years to help people fall asleep faster,” she
explains. We’ve taken an already accepted remedy and turbo-charged it
with active ingredients that help even more with relaxation and managing
your sleep cycle.”
Dreamerz conducted a 10-day in-home use study with
89 consumers suffering from mild- to moderate insomnia. At the
conclusion of the study, 77 percent of participants reported falling asleep
faster, while seven out of 10 said they felt Dreamerz improved their
quality of sleep.
Promoted as the “first all-natural sleep aid in a
delicious dairy beverage,” Dreamerz is available in three flavors:
Chocolate S’Nores, Vanilla Van Winkle and Crème de la REM.
Sweetened with organic crystallized cane juice, erythritol and stevia, the
all-natural product is low in fat and contains 100 calories per 8-ounce
serving. All three varieties are available in shelf-stable 32-ounce
containers, while Chocolate S’Nores is also available in an 8-ounce
container.
Target consumers include women 35 and older; baby
boomers whose sleep is disturbed by reduced melatonion and menopausal
symptoms; and health-conscious consumers who desire alternative, natural
solutions. The product is currently in launch mode, but Steele says it
should soon be available in natural food, drug and grocery stores, in
addition to the company’s Web site, www.dreamerzfoods.com
In Hayward, Calif., Omega Farms, a subsidiary of
Pacific Cheese Inc., sells an entire line of dairy products fortified with
omega-3 fatty acids, which have been shown to be beneficial in the
treatment of a number of illnesses, ranging from heart disease to arthritis
to bipolar disorder. Included within the line are four varieties of milk
— Vitamin D Milk, 1% Low-Fat Milk, 2% Reduced-Fat Milk, and Chocolate
2% Reduced-Fat Milk — each serving of which contains 75 milligrams of
EPA/DHA omega-3 fatty acids.
Likewise, Farmland Dairies LLC has responded to the
increased consumer demand for omega-3-fortified products. The Wallington,
N.J.-based company recently reformulated its Special Request 1% Plus,
rolling it out as Special Request 1% Plus with Omega-3. The product
contains 55 milligrams of omega-3 fatty acids, which have been demonstrated
to be beneficial to the heart and mind.
“We are trying to provide a value to our
customers over and above the basic milk offering,” says Stephen
Raiola, merchandising and marketing manager. “The more value we are
able to bring the consumers, the better off everyone is.”
Julie Cook Ramirez is a freelance journalist based in
the Chicago area.
$OMN_arttitle="Value Proposition";?>
$OMN_artauthor="Julie Cook Ramirez";?>