According to in-store scanner data from Information Resources Inc., Chicago, the category called "cappuccino/iced coffee" increased slightly more than 55% from 2000 to 2004. Indeed, ready-to-drink packaged, coffee-flavored, milk-based beverages are an exploding business. Sales of other coffee-flavored dairy products such as frozen desserts appear to be steady, suggesting they are still quite popular with consumers.
Marketers of cultured dairy products are floating on cloud-nine these days thanks to numerous trends in today's marketplace that are making cultured dairy products more attractive than ever before. For starters, cottage cheese, a category that for so long was either on the decline or was barely managing to stay afloat, is booming as a result of its high-protein positioning. And yogurt, in a drinkable format, just so happens to be the perfect
product for today's on-the-go, health- and wellness-seeking consumer.
With Canadian frozen novelty marketer CoolBrands International Inc., acquiring the yogurt brands and assets belonging to Kraft Foods Inc., Northfield, Ill., the refrigerated yogurt case is poised for some "novel" new products. Already we are seeing major marketers adding ingredients such as plant sterols, fiber and extra vitamins and minerals to their products.
The Dietary Guidelines for Americans 2005, issued in January, suggests some key dietary changes for consumers. For starters, the guidelines encourage every American more than eight years of age to consume three servings of low-fat or fat-free dairy products each day. In addition, they also tell Americans to consume a sufficient amount of fruits and vegetables while staying within their energy needs. For a reference 2,000-calorie-a-day diet, two cups of fruit per day are recommended.
What do milk and tea have in common? Well, they both just happen to be some of the most favorably talked about commodities in the food and beverage industry today. The science and intellectual properties focusing on milk and tea are immense. Specifically with tea, since 2001, more than 1,000 studies have been conducted on tea; and more than 450 patents have been applied or issued for tea products around the world.
"There is an overriding focus on health and wellness in the beverage category," says Gary Hemphill, senior v.p., Beverage Marketing Corp., New York. With milk having both these attributes-naturally-dairy ingredients will likely be included in many of the new beverages rolled out in 2005.