It was a mixed bag product-by-product, but total dairy sales were strong during 2004.

Dean Foods Co. , Dallas, recently began test marketing a 10-flavor line of Tampico® frozen desserts. Described as premium and inspired by Latin American fruits, the Tampico frozen dessert line

We are starting to see more innovations in packaging across businesses and categories, and some of these are "game changing" packaging innovations. Campbell's Soup at Hand, yogurt in tubes and Dutch Boy Paint represent hundreds of millions in new sales and packaging was critical to their success. These changes are delivering improved consumer benefits (both real and perceived).

The competition among the top 10 brands of yogurt is fierce, and some interesting trends are emerging and they are made more visible with some historical context. Meanwhile, it looks like sales of lowfat and skim milk are actually starting to get some traction.

Ice cream is historically a 2 to 3% growth category, but 2004 was a tough year for dairy's most indulgent segment, thanks in part to increased awareness of carbohydrates, calories and sugar. By many measures, the ice cream market was shrinking for most of the year.

Oh, to be a yogurt salesman! If there's one segment of dairy that's just like the Energizer Bunny it's yogurt. Just look at the quarterly sales of yogurt through March 27. There has been positive growth by both dollar and unit measures for five of the last six quarters.

Flavored milk is one of the shining stars of the dairy industry. It's innovative, it has lots of added value and therefore it yields higher margins, and when packaged for single serve it does very well in a variety of channels including convenience stores, foodservice and vending.

Looks like the growth opportunity in processed cheese might require shredding it and putting it in a bag. Processed shredded cheese grew substantially in 2004, although it was from a small base. This, according to recent data from Information Resources Inc.

It looks like there's a light at the end of the tunnel for ice cream makers. Quarterly sales have gradually improved, and unit sales have crossed over into a growth pattern for the most recent two quarters. Meanwhile, the cheese and yogurt categories are whizzing along, with some stalwart brands in both arenas really burning up the road. And as with ice cream, there may be some hope for orange juice.

For the past several years, my level of optimism about the future of the beverage milk business has been on a rollercoaster ride not unlike the price of milk.