strat egy repor t - Dairy Farmers of Ontario

STRATEGY REPORT
A business int e l l ige nc e report published for the dairy industry of Ont a r io by Dair y F armer s of Ont a r io • July 2001
Yesterday and Today
Silverwoods Cream
Top Bottle with
spoon, courtesy of
Country Heritage
Museum, Milton,
Ontario
Quality Milk and
Dairy Products’
Breakfast Milk in a
custom-molded,
gold-topped pint
plastic bottle.
Redesigned Dairy Crest cartons for fresh
and UHT milk
Arla Foods
new packaging for its
Cravendale
PurFiltre
fresh milk
This newsletter is one of several initiatives
from Dairy Farmers of Ontario, as part of
its Milk Marketing Initiatives program.
The CanAdapt Program supports these
initiatives through the Agricultural
Adaptation Council (AAC).
Agriculture Canada and AgriFood Canada have provided
grants to the AAC.
And the (innovation) beat goes on …
Milk has made tremendous progress in addressing market demands and
changes since the first Cream Top Bottle. Expanding into new market
segments such as organic, ESL, flavoured, fortified and ultra-filtered milk
and introducing new package sizes, shapes and materials has brought
the milk industry a long way. In this issue of Milk Strategy Report, we
continue to explore key tactics being employed by the global dairy industry to refine and define milk segments and strategies.
2001 International School Milk
Conference
From June 3 to 6, Dairy Farmers of
Ontario hosted an international conference to highlight the successes
and challenges of school milk programs around the world. Some of
the key issues addressed were the
changing environment affecting
school milk programs, marketing
healthy eating to kids, the role of
dairies and foodservice operators,
and the role of packaging, distribution and promotion in different markets. For details of this highly
successful event, please see the special School Milk section in this issue
of Milk Strategy Report.
Also featured are our regular
columns:
■ Hits and Hot Spots showcases
new milk products which illustrate
package or product innovations.
■ Industry News takes another look
at extended shelf life milk, and re-
ports on recent developments in distribution, recycling, organic milk,
and a new market segment for milk.
■ Packaging Innovations features
examples of seasonal and protective
packaging, and highlights big new
investments in packaging.
In closing, we review a couple innovations by our competitors … and
potential threats to the milk industry: Coca-Cola’s much publicized development of drinks with pretensions
of being ‘nutritious’, and Danone’s
Activ’, a bottled water which provides as much calcium as two glasses
of milk.
If you have any comments, suggest io ns or inno v a t io ns you have
come across, please fax Nick PriceOwen at 905 821-0585 or our editor Ellen Cooper at 613 962-9516.
You can also e-mail us at
[email protected]
hits and hot spots
New products described below are examples of global trends in brand building through extended
shelf life, fortification, packaging and targetting.
NAME:
COUNTRY:
PACKAGE:
INNOVATION:
Anchor Milk by New Zealand Dairy Foods
New Zealand
1 and 2 litre HDPE bottles
Brand differentiation using new packaging, labeling and
names. The bottles have a ‘consumer-friendly’ curved shape,
larger handle for easier grasping and pouring, back panel
with nutrition tips and recipes, and new names – Calci-Xtra,
Lite Blue, Blue Top, Trim and Super Trim. The company
expected sales increases of 1 to 2 percent, and reports
increases of up to 30 percent, with a premium price.
NAME:
COUNTRY:
LAUNCH:
PACKAGE:
Grab ‘N Go by Producers Dairy Foods Inc.
U.S.
September 2000
Pint and half pint shaped plastic bottles with full-sleeve
labels.
Seasonal bottle shape and label design for Christmas-time
Egg Nog.
INNOVATION:
NAME:
COUNTRY:
LAUNCH:
PACKAGE:
INNOVATION:
Toni Swiss Müesli by Toni
Switzerland
December 2000
250 mL HDPE shaped bottle
For the on-the-go segment – a milk-based breakfast that
fits in a car cup holder – flavoured yogourt drink fortified
with vitamins B2, B12, C, E, folic acid, and muesli.
NAME:
COUNTRY:
LAUNCH:
PACKAGE:
INNOVATION:
Horizon Organic by Horizon Organic Dairy
U.S.
August 2000
Quart aseptic box
Organic and long shelf life (8 months)
NAME:
COUNTRY:
PACKAGE:
INNOVATION:
Organic Valley Organic Lactose - Free Low Fat Milk
U.S.
Half gallon gable-top cartons
Organic, ultra -pasturized extended shelf life milk.
NAME:
COUNTRY:
LAUNCH:
INNOVATION:
Freeze Dried Pearls of Cream by Dairy Crest Ingredients
U.K.
October 2000
For foodservice industry, shelf-stable at room temperature,
12-month shelf life.
2
2001 school milk conference
For four days, dairy processors and international school milk authorities exchanged information and ideas on the successes and
challenges facing school milk programs. While these programs are growing and expanding around the world, they are also facing
more challenges from increased competition and changing government policies. By the end of the conference, public health and
education authorities, and dairy leaders knew what they had to do to ensure a healthy future for Canadian school milk programs.
School Milk Spirit of Cooperation
■ A central organizing body is essential to coordinate and manage marketing and promotional activities.
■ Health benefits need to be communicated to parents, teachA total of 181 delegates from 26 countries attended the Confer- ers and children.
ence to hear nineteen presentations over two days. And even ■ Drinking milk in elementary and high schools (through a dewith the wide range of topics, speaker expertise and level of par- sire, not a mandate) increases the chances of continuing to drink
ticipation in school milk programs among the delegates, there milk into adult years.
was consensus: milk is vitally important to the healthy physical ■ School milk participants must speak to kids in terms they unand mental development of children, schools are a key venue derstand and can relate to. This includes packaging graphics
for delivering milk to children, and cooperation among indus- (which may be different in elementary schools and high schools),
try stakeholders is critical to ensure that children around the and promotional materials.
world receive adequate nutrition.
■ School milk provides powerful business-building opportunities for dairy processors, both short term and long term.
By the end of the Conference, it was clear that the last point was ■ Treat children as consumers to ensure continued milk loyalty,
the hinge pin of any successful school milk program.
including brand loyalty.
■ School meals improve nutrient intake.
"Population health, academic achievement and future dairy ■ School meals increase milk consumption.
■ Support for school meal programs results in increased milk
consumption depend on a balanced diet throughout themfor
ative years (0 to 15 years).
sales.
■ Programs must be easy for the school to administer.
"Furthermore, this can only befully achieved through a coop- ■ Milk must be priced competitively, and can benefit from the
erative effort by key human and financialersources, namely, stu- use of subsidies.
dents, parents, volunteers, schools and school boards,egov
rnment ■ Schools must have or be provided with refrigeration and
agencies (at all levels), the agricultural sector and dairy oprces- equipment.
sors."
■ Nutrition education materials should be an integral part of
any school milk program.
One of the highpoints of the Conference was the presentation of ■ All elements associated with a school milk program must give
a $2 million cheque from the John Baird, Ontario’s Minister re- milk a relevant, positive image.
sponsible for children, to Dairy Farmers of Ontario. The money
will be used to expand school milk and nutrition programs to Below is a listing of the presentations made at the Conference.
an additional 650 schools in the province of Ontario.
School Milk Programs
Some prevalent themes during the Conference were the in- ■ Australia: Milk Still Cool for Schools After Deregulation
creasingly aggressive actions of beverages with no or low nutri- ■ Canada; 10 Different Systems from Government to Private
tional value against preteens, most notably, soft drinks and Sector
fruit-flavoured drinks, the need to re-energize milk packaging ■ Canada: Marketing Milk to Teens in Schools in Canada
(single-serve bottles, aseptic cartons, etc.), and package graphics ■ China: School Milk Programs in China
to suit the audience (elementary school children or teenagers), ■ International: Experience of School Milk Internationally
and the importance of nutrition education materials to provide ■ International: The Success and Role of School Milk Prothe nutritional foundation for school milk
grams Around the World
programs.
■ Mexico: The Role of School Milk Programs
in Mexico
■ Netherlands: School Milk as an Effective
Key Points
■ If the dairy industry does not enMarketing Tool For Dairies
courage milk consumption in
■ Scotland: Milk Bars Work in High School
schools, other beverages will – and
Cafeterias
are – increasingly stepping in and dis■ Sweden: A Proper Lunch Improves Academic
Results
placing milk and other nutritious beverages.
■ U.S.: Children’s Attitudes and Behaviours Towards
■ Putting milk on the menu is not enough. It must be attractive School Milk and Vending
(packaging, flavours, freshness, temperature) and available (cafeteria ■ U.S.: Just Having Milk on the Menu Isn’t Enough
coolers, vending machines, milk bars/kiosks, classroom distribution). ■ U.S.: Milk, a Government Funded Priority in Our Schools
The First North American International Conference on
School Milk: June 4-6, 2001, Toronto
3
Health and Nutrition
■ Lactose Intolerance … Issues
Management
■ Marketing Healthy Eating
to Kids
■ Why Milk Matters … The importance of Milk in Children’s
Diet
Some Statistics
■ Internationally, milk is in a weak position in schools. Based
on a survey by the FAO, 60% of the sample reported that milk
was consumed less than other drinks, 12% reported milk was
consumed at about the same level as other drinks, and only in
2% of cases was milk the main beverage consumed in schools.
■ The U.S. runs school feeding programs which provide meals
to about 37 million students per day (breakfast and lunch), at
about 199,000 locations. In one program alone, 126 million
half pints of milk were served in 1999.
■ Two USDA studies (1987 and 1998) showed that school milk
purchases were down 29%, while fruit juice purchases were up
30 percent, fruit drink purchases up 180% and carbonated soda
purchases up over 1,000%t.
■ In Sweden, 84% of 13 to 19 year olds have school lunch often, and 91% of students are offered milk on all school days.
But, when alternative beverages are offered, milk consumption at
school declines.
■ Swedish school milk consumption increased from 1.1 dl in
1992 to 1.7 dl in 1999. The goal of the Swedish Dairy Association is 2.9 dl, i.e. one glass per pupil.
■ Since 1995, the European Union has subsidized school milk.
■ School milk accounts for 3% of Mexico’s total drinking milk,
or 18% of milk assigned to social programs (211 million litres).
■ In Canada, up to 80% of children eat
lunch at school. Across Ontario the Elementary School Milk Program provides
milk to 900,000 school children every
day at lunchtime, at nearly 2,500 elementary schools.
Other School Milk News
Programs
■ Welsh school milk research project launched: Facilitators will
work with education authorities and primary schools, encouraging them to provide students with milk during recesss. The
three-year project is funded by the Welsh Development Agency’s
Food Directorate.
■ British government to provide funding for school milk programs: Three U.K. government bodies will chip in (pounds sterling) 1.5 million to offset the reduction in European Union
support for school milk programs. Finland,
Sweden and Portugal have also stated their intention to absorb the reduction in EU support. Austria has said it will partially absorb
the shortfall.
use farm export subsidy funds to purchase surplus American
commodities.
Promotions
■ Cartons for Computers: Over 5,000 U.S. schools entered a
contest to receive prizes for the highest milk consumption increase. The winning school won $10,000 in computer equipment and $2,000 in foodservice equipment. The Milk
Mustache Campaign and the National Dairy Council ran the
contest, based on USDA reports that most teenagers don’t get
enough calcium in their diets to meet the recommended daily intake of 1,300 mg per day.
■ Planet Patrol: An ‘environmentallyfriendly’ primary school milk promotion in the U.K. uses environmental
issues to encourage milk consumption.
■ U.K dairy tests primary school milk proFeatured topics – Energy, Wildlife,
gram: Program strategies are to make milk
Habitat and Waste – are displayed on
more attractive to children, develop an adTetra Brik cartons from Express
ministrative program that is easy to use, and Southern Co-op Dairies School Milk Program Dairies, Midlands Co-op and other
establish a method for parents to ensure their
participating dairies.
children are getting the nutritional benefits of milk. Southern
■ Books for Schools: Schools in New Zealand can
Co-op Dairies is using Tetra Brik cartons fixed with straws,
win books by collecting Anchor milk, butter and
which feature Eric the Elk and Wilhelmina the Woodpecker.
cheese barcodes, and entering the ‘Books for Schools’
Packs will also carry educational messages.
contest. If a school’s entry is drawn, it will win one
dollar
for every milk barcode, and two dollars for every
■ USDA provides funding for nonfat dry milk powder
butter and cheese barcode. A total of $100,000
for world school lunch program: The international
New Zealand Books
in books will be awarded.
school lunch program is estimated to feed 9 million
for Schools Contest
school children in developing countries. The U.S. will
4
INDUSTRY NEWS
The Benefits of Extended Shelf Life Milk
French Cream Market Increases in
Volume and Sales
A trend that keeps building
momentum is extended
shelf life milk (ESL). Its
production and post-production benefits include:
The French cream market increased almost 3 percent in volume and 5 percent
in value in 2000. The market is driven
by UHT cream, which increased 9 percent in volume and has a penetration rate
of about 50 percent. Extra light UHT
and semi-thick cream are also growing
rapidly. Fresh cream volume is stable,
and within this market, light fresh cream
is growing while thick fresh cream is declining.
■ wider distribution hence
wider markets,
■ reduced production
costs, especially those related to lower volume,
niche items,
■ more efficient longer
runs for value-added
products,
■ better taste of ESL
products because of gentler |processing,
■ improved ability to fill
o rd e r s,
■ decreased out-of-stocks,
■ enabling of warehouse programs,
■ reduced product dumps due to spoilage,
■ helping milk compete against other
competitive long life products.
Other ESL News
Key Benefit
Another benefit to consider is the premium
price dairies are charging. In the U.K.,
Arla Dairy markets Cravendale PurFiltre
ESL milk, and charges about 15 percent
more than regular milk. Cravendale currently holds a 5 percent market share in the
parts of the U.K. in which it is sold
■ Sales increases anticipated: Some analysts forecast that the world’s largest milk
markets – USA, UK, Germany and
Japan – will experience sales increases in
ESL milk from 1.1 billion litres to 8.1
billion litres in 2003.
■ ESL milk sales doing well in France:
ESL organic milk volume increased 32
percent, while special and enriched milk
with long shelf life increased 7 percent.
Figures are reported for the 12 months
ending September 2000.
Other Noteworthy New Products and Innovations
Especial Mamãs is a new line extension from Portuguese dairy
Lactogal. The fortified long life
milk
is
targeted at
p re g n a n t
and nursi n g
women
and contains calc i u m ,
folic acid
and vitamins B6,
C and D.
Mimosa Especial Mamãs is the
dairy’s ninth modified long life milk
Felix Cat Milk by
Friskies in the U.K. is
now available in 200 mL
HDPE bottles, the first
multi-layer HDPE bottle with metal closures
in European pet food
history. The milk is lactose-reduced.
The breakfast to go comes with a
spoon and sugar sachet.
Twinners won a gold award during
Hospitality Week in the U.K. This
ready-to-eat ‘grab and go’ portable
breakfast contains cereal and halffat milk with a five-month shelflife. Although still a concept,
judges at the exhibition deemed
Twinners to have great potential for
airports, schools, vending machines
and office-bound workers.
Felix Cat Milk has a four-day
shelf life after opening
5
Roundup:
Regular Milk
Robert Wiseman Milk
May
Resealable carton
250 mL
Robert Wiseman
Dairies, U.K.
New single-serve package
to target snack food segment.
Semi-skimmed milk
August
Tetra Top carton
w/ screwcap
Pint
Midlands Co-op, U.K.
Tetra Top carton
w/ screwcap
Pint
Robert Wiseman .
Dairies, U.K
Package colour changed to the industry
standard for semi-skim milk (green).
Package also features local football mascot.
Milk blended with double cream to target
cereal eaters and coffee drinkers.
Total milk fat – 5%.
Fresh ‘N’ Creamy
Breakfast Milk
August
Longlife Choice
October
Tetra Brik carton
w/ ReCap
1 litre
500 mL
Tanner Foods, U.K.
Branded, long life milk in Whole,
Semi-skimmed and Skimmed
Sunshine Dairy Foods,
U.S. (OR)
Niche milk from small dairy.
No premium charged.
Sunshine Dairy BST-Free Milk
March
Fortified Milk
Asturiana Calcio
January 1999
Aseptic carton
Corp. Alimentaria
Penasanta, Spain
Fortified with calcium and
oligofructose.
Hershey CalciumFortified Chocolate Milk
October
Gable top carton
w/ spout
Morningstar Foods Inc.,
U.S.
Calcium-fortified flavoured milk.
Lancashire Dairies,
U.K.
Flavoured, and fortified with
calcium, vitamins B2 and B12.
Valio, Finland
Fortified with lactic acid bacterium to
lower blood pressure.
Upstate Farms
Cooperative, U.S. (NY)
Calcium, protein and vitamin C-fortified
lowfat milk. Available in white and
chocolate.
Conaprole, Uruguay
Calcium-fortified milk – contains 40%
more calcium.
Superlife
October
200 mL
500 mL
1 litre
Evolus Milk
October
Milk for Life
November
Bottle
16 ounce
Half gallon
Conaprole leche extra calcio
February
FLAVOURED Milk
Frescos
September 1999
Plastic bottle
Half pint
Lane Dairy Inc.,
U.S. (TX)
Sweet, tropical flavoured milks targeted to
the Hispanic market, ‘picky parents’, and
calcium-conscious women.
Kemps Chocolate
LowFat Milk
August
Plastic bottles
in six packs
8 ounce
Marigold Foods, Inc., U.S.
New Cookies ‘n Cream flavour.
Mmmilk
September
Plastic bottle
8 ounce
Shamrock Dairies, U.S.
(AZ)
New ‘kid-sized’ bottles sold in six packs.
Producers Dairy
Grab ‘N Go Milk
September
Plastic, shaped
bottle
Half pint
Pint
Producers Dairy Foods, Inc., Flavoured milk and Egg Nog.
U.S. (CA)
Full sleeve label used to block light.
Sinton 2% Reduced
Fat Milk
October
6
Plastic bottle
14 ounce
Sinton Dairy Foods Co.,
Bravo! Foods, Inc. (China
Premium Food Corp.), U.S.
Flavoured milk featuring
Looney Tunes characters.
New Products
And Packaging
Flavoured Milk (continued)
NesQuik
October
Plastic bottle
Gable-top carton
Candia Recette
de Chocolatier
October
Bottle
Grip ‘n Go Milk
November
Plastic bottle
Domo lang lecker
+Milch
December
Slimline pack
Egg Nog
December
Promised Land
February
Glass bottle
Ambrosia Splat!
February
16 ounce
32 ounce
Nestlé USA
New package; 60-day refrigerated shelf life.
Candia, France
180-day shelf life chocolate milk.
12 ounce
Land O’Lakes, U.S.
Premium Strawberry – flavoured milk with
added calcium.
1.5 litre
Friesland Deutschland
GmbH, Germany
Chocolate milk with less cocoa and
sugar than conventional cocoa drinks.
16 ounce
Foster Farms, U.S.
(CA)
New single-serve package.
9.5 ounce
Quart
Promised Land Dairy,
U.S. (TX)
Flavoured milk with 25-day refrigerated
shelf life.
Unilever Bestfoods,
U.K.
Flavoured shelf-stable milkshakes targeted
to children 4 to 11 years of age.
Made for school lunchboxes.
Ohayo Nyugyo,
Japan
Refrigerated veggie and fruit drinking
yogourt.
60 cl
200 mL
Yogourt, cultured Beverages
Ohayo Oishiku Yasai
Kajitsu Nomu Yogurt
November
Paper cup w/
plastic cap, straw
Paperboard carton
200 mL
Toni Swiss Müesli Drink
December
HDPE shaped bottle 250 mL
Toni, Switzerland
Flavoured yogourt and cereal drink.
Bio smoothie
December
Plastic bottle
Sunjuice Ltd., U.K.
Flavoured drinking yogourt.
Milk and other beverage blends
Graduates Juicy
Smoothy
August
Clear plastic bottle 32 ounce
Gerber Products Co.,
U.S. (MI)
Flavoured juice and dairy beverage
for toddlers.
Viva Fruit
January
Bottle
Candia, France
Juice and milk drink – new raspberry
flavour.
Noris Farms, U.S. (OR)
Full line of organic milk –
Nonfat, 1% Lowfat, 2% Reduced Fat, Whole.
Loseley Chilled Products,
U.K.
Organic double cream.
ORGANIC MILK AND Cream
Organic Life
June
Gable-top carton
Half gallon
Loseley Organic
Fresh Double Cream
August
Pot
Horizon Organic
August
Aseptic box w/
recloseable cap
Quart
Horizon Organic Dairy,
U.S. (CO)
New aseptic box provides for
eight-month shelf life.
Organic Milk
October
Tetra Top carton
w/ ScrewCap
Pint
Robert Wiseman Dairies,
Scotland
Full cream milk.
GoodHeart Organics
November
Gable-top carton
Half gallon
Rockview Farms,
U.S. (CA)
Full line of "fresh, value-priced" organic milk.
284 mL
7
Roundup: New Products
And Packaging …cont’d
ORGANIC MILK AND Cream (continued)
Organic Valley Organic
Half & Half, and Heavy
Whipping Cream
November
Carton
1 quart
8 ounce
Organic Valley,
U.S. (WI)
Organic Valley Organic
Lactose-Free Milk
November
Carton
Half gallon
Organic Valley,
U.S. (WI)
1% milkfat.
Bongrain Cheese
USA (PA)
Made with cultured pasteurized cream.
Positioned as an alternative to sour
and heavy creams, for use in sauces,
soups and desserts.
Dairy Crest Ingredients,
U.K.
Freeze-dried droplets of cream, for
foodservice.Stable at room temperature;
12-month shelf life.
Isigny Sainte-Mere,
France
Three flavours of cooking cream.
Seasonal.
New Zealand Milk
Three varieties of extra thick flavoured
whipped cream for Christmas – Couvoisier,
Grand Marnier and Tia Maria Chocolate.
Candia, France
Semi-thick, light cream.
CReam
Alouette Crème Fraiche
September
Plastic tub
7 ounce
5 pound
Freeze Dried Pearls
October
AOC Cream with Mushrooms
November
25 cl
Anchor Aerosol
Whipped Cream
November
Aerosol can
Babette Semi-Epaisse
January
Brik carton
20 cl
BEVERAGES WITH MILK COMPONENTS
Keith Floyd’s Tipsy Cream
December
New flavour of alcoholic pouring cream.
H.P. Hood Inc., U.S.
Flavoured, dairy-based refrigerated
beverage aimed at children.
U.K.
Drambuie with cream aimed at adults
under 35 years.
Hendrie’s Karnival Kids
Dairy Drinks
October
Gable-top carton
Drambuie Cream
September
Bottle
Options Cool
September
Tetra Brik carton
180 mL
Novartis Consumer Health,
U.K.
Flavoured ready-to-drink beverage
with UHT milk. Lower fat, reduced calories,
aimed at weight conscious women.
Nescafe Ice
September
Glass bottle
280 mL
Nestlé, U.K.
Chilled coffee beverage with milk
components, in Vanilla and Mocha
flavours. Aimed at youth market and soft
drink consumers.
Tsunami
August
Glass bottle
South Beach Beverage Co.,
U.S. (CN)
Dairy-based orange creamflavoured energy beverage.
Milky Way Magic Stars
Milk Way Shake
August
Bottle (Shake)
Tetra carton
(Magic Stars)
437 mL
945 mL
189 mL
Lancashire Dairies,
U.K.
Shake – a conventional, thick, flavoured
milkshake. Stars – a less thick, flavoured
milk drink.
Relax Your Mind
December
Tetra Brik carton
300 mL
Taiwan
Flavoured longlife milk drinks aimed at
teenagers and young adults.
8
1.89 litre
St. Ivel, U.K.
70 cl
Roundup: New Products
And Packaging …cont’d
BEVERAGES WITH MILK COMPONENTS
(continued)
Jeff’s Amazing New
York Egg Cream Soda
December
Glass bottle
9.5 ounce
Egg Cream America Inc.,
U.S. (IL)
New Coffee Dream flavour of
cream soda. Made with cream; carbonated.
Chocolate Moose
Premium Milk Drink
January
Glass bottle
15.5 ounce
North American
Beverage Co., U.S. (NJ)
Premium chocolate drink
with more carbohydrates than
sports drinks. Shelf stable.
Silhouette Saveur Legere
January
Bottle
Candia, France
Soft drink made with milk, in two flavours.
Mac Farms, Inc.,
U.S. (MA)
Flavoured, carbonated milk-based beverage.
Six-week shelf life refrigerated.
Valio Inc., Finland
Vanilla and Caramel flavoured custards in
larger multi-serving package.
Parmalat, Italy
Ready to use dairy desserts.
Acirca, Inc., U.S.
Ready to serve soups containing cream
and nonfat milk. Varieties are Autumn
Harvest, Homestyle Broccoli, Country Corn
Chowder, Ginger Carrot and Savory Tomato.
50 cl
e-Moos
March
DESSERTS
Fanny Custard
August
Gable-top carton
Zabaglione
Chocolate ‘warm in a cup’
January
Tetra Brik
Walnut Acres Certified
Organic Soup
February
500 g
500 mL
PACKAGING INNOVATIONS
Big Switch to Plastic
A survey conducted in the U.S. among members of Food Engineering magazine’s executive
advisory panel showed that plastic is the preferred packaging material. Almost four out of
ten survey respondents said their firms will
convert to plastic in the coming year, 23 percent will switch from paperboard, and 16 percent will switch from glass.
Fragmentation of Distribution
Channels
(Issues impacting packaging decisions,
ranked in order of importance)
■Growing importance of mass
merchandisers in food sales and
growth of club stores
■Changing requirements of
quick-serve restaurants, restaurateurs and foodservice operators
(Source: Food Engineering’s Executive Ad-
The survey also found that almost seven out of
ten firms made changes to their machinery.
visor Panel Packaging Study 2000)
Fu rt h e r, almost half indicated they will
spend between $100,000 and $200,000 on
new packaging equipment in 2001. More
than one quarter anticipate spending
$500,00 or more.
Fragmentation of distribution channels is a
primary underlying reason for comments on
issues impacting packaging decisions. And
the increased diversity in distribution channels means plants are expected to respond
with more packaging sizes.
9
PACKAGING INNOVATIONS ...cont’d
Dairies Celebrate Christmas with Festive Packaging
Robert Wiseman Dairy U.K., featured 112 different packaging designs on its one litre, one pint
and 500 mL Tetra Top cartons. The designs were
created by consumers during a promotion for
children.
Smith Dairy in the U.S. featured the
Clauses and Christmas nutcracker soldiers on a line of collectible Egg Nog
bottles.
Dairygate packaging in the U.K. sported a
Christmas snow scene on cartons and plastic
bottles.
Protective Packaging
Smith Dairy in the U.S. has adopted the yellow light-block HDPE
jug to protect milk’s nutrients. Smith Dairy is planning to recoup
some of its costs by selling billboard space on the label to other,
non-competitive manufacturers.
Labels and Graphics
Two U.S. dairies revamped their year-round packaging to create
a premium image and catch the consumer’s eye.
Before
After
Marigold Foods redesigned its Kemp’s milk graphics to create a premium look and feel.
10
Smith Dairy is using
metallic labels, reverse
printed with eight
colours, on its 8 ounce
and 16 ounce Shamrock Farms and mmmilk bottles. Metallic
labels are considered to
be the next trend in
milk labels because of
their appeal to teenage
boys and adult men,
and their eye catching
shelf appeal.
OTHER INDUSTRY NEWS
Distribution
■ MilkPEP’s school vending
program: One hundred
milk vending machines were
placed in middle and high
schools in five U.S. markets.
The objective of the program is to determine the demand and potential sales of
milk purchased through
vending machines. The machines are monitored via a
wireless Internet connection
for route service and product
freshness, and feature a glass
front, which
displays up to
360 singleserve bottles.
■
Mobile
milk
bar:
The 40-foot
milk bar will
tour the U.K., attending
farm shows and promoting
the health benefits of milk.
It can be staffed by up to
three people who will serve
milk, of course, as well as
products featuring milk such
as coffee and tea, and hot
and cold food.
Recycling
■ Recycling initiative for plastic bottles: RECOUP will begin by focussing on plastic
milk bottle collection schemes in three areas, with a minimum of ten recycling banks in
each area. An additional three million plastic bottles per year will be recycled. The
program, launched by the U.K. Ministry of the Environment, will be funded by dairies
and packaging companies, and landfill tax credits from UK Waste.
A new milk segment
"Free Farmed": A new “Free-Farmed” seal, approved by the U.S. federal government in September 2000, is designed to provide consumers
with the option of choosing humanely produced products. Marketers wanting to use the
seal on milk and milk products must attest that
their cattle are well cared for.
According to the American Humane Association (AHA) who launched the program, consumers have repeatedly said they would like to
have the option of choosing humanely produced products and would be willing to pay
more for them.
The program will be administered and monitored by a nonprofit organization created by
the AHA, while the USDA will monitor the inspection process. Among the first producers using the Free Farmed seal is Clover Stornetta
Dairy Farms of California who agree to stringent quality standards, which exceed the state’s
requirements for cell and bacteria counts. Du
Breton Natural Pork of Quebec is the first
Canadian company to use the Free Farmed seal.
11
PROMOTIONS
■ Milk finds true love: A humourous advertising and promotion campaign in South Wales featured milk as the inspiration to
reunite couples. A TV commercial depicts a young man who, after being thrown out of the house by his girlfriend, is inspired by
a glass of milk to woo her back. In a radio promotion, ex-par tners and ex-lovers phone in their sob stories in hopes of rekindling their passion and "making a fresh start with Fresh Co-op
Milk". The caller with the most heart-rending story wins a
weekend in Paris.
Competitor Threats
Taking nutrition claims in vain: A press
conference held by Coca-Cola resulted
in a flurry of press headlines … "Project
Mother: Coke to test new milk products." But closer scrutiny revealed that
instead of the boon to the milk industry as many U.S. dairy watchers initially
thought, Coke’s plans might make this
enormous competitor an even greater
threat.
All Coke has said is that the new products will have a nutritional profile "like
that of milk". But, it has been clear on
its recent partnership with Walt Disney
and Procter and Gamble to pro d u c e
f ru i t - f l a vo u red drinks. The pro d u c t s
will use the Sunny Delight and Minute
Maid brand names and build on the
equity of Disney characters. If the two
issues are related, the result may be a
Yoo-hoo like beverage with little if any
milk/dairy content.
Your Comments
At this point, the best guess is that the
products will be shelf stable unrefrigerated (to fit with Coke’s current distribution system), will make contrived
nutrition claims (using trace amounts
of milk components), and will mean
even greater competition for the dairy
industry.
Eroding milk’s territory: Danone’s latest
new product launch in the U.K. is Activ’,
a bottled water which provides 300 mg
of calcium per litre, as much calcium as
two glasses of milk. The company will
spend (pounds sterling) 9m in a press and
TV campaign to tout its health benefit
claim. TV ads aim to show how calcium
is an essential part of a daily diet with emphasis on consumption by children. Press
advertorials will run in issues of women's
and parenting magazines. Activ’ is sold in
1.5 litre bottles.
We would like to know what you think of this issue of Milk Strategy Report. Please write in any
comments or suggestions you have and mail or fax this portion of the newsletter, or send an e-mail to:
Ellen Cooper
Milk Strategy Report
30 Hope Crescent
Belleville, Ontario
K8P 4S2
Fax: 613-962-9516
[email protected]