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DAIRY FOODS Volume 114, Issue 11 (ISSN: Print 0888-0050 and Digital 1558-142X) is published 12 times annually, monthly, by BNP Media II, L.L.C., 2401 W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) 362-3700, Fax: (248) 362-0317. No charge for subscriptions to qualified individuals. Annual rate for subscriptions to nonqualified individuals in the U.S.A.: $183.00 USD. Annual rate for subscriptions to nonqualified individuals in Canada: $225.00 USD (includes GST & postage); all other countries: $238.00 (int’l mail) payable in U.S. funds. Printed in the U.S.A. Copyright 2013, by BNP Media II, L.L.C. All rights reserved. The contents of this publication may not be repro-duced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations. Periodicals Postage Paid at Troy, MI and at additional mailing offices. POSTMASTER: Send address changes to: DAIRY FOODS, P.O. Box 2144, Skokie, IL 60076. Change of address: Send old address label along with new address to DAIRY FOODS, P.O. Box 2144, Skokie, IL 60076. Canada Post: Publications Mail Agreement #40612608. GST account: 131263923. Send returns (Canada) to Pitney Bowes, P.O. Box 25542, London, ON, N6C 6B2. For single copies or back issues: contact Ann Kalb at (248) 244-6499 or [email protected].

28

38 48

NOVEMBER 2013 | VOL. 114, NO. 11

20 Eat. Drink. Dairy.Heluva Good! introduces Greek-style yogurt dips, Prairie Farms adds Greek yogurt to its line and Top O’ The Morn Farms introduces Root Beer milk.

22Agri-Mark is the Exporter of the YearAgri-Mark’s passion for exports and its efforts to elevate whey protein as a high-value ingredient are some of the many reasons why Dairy Foods named the company the recipient of the 2013 Tom Camerlo Exporter of the Year award.

28 State of the IndustryHollywood inspired Dairy Foods’ annual State of the Industry review of foods, beverages, ingredients and exports. We review the annual sales in each dairy category and speak with processors for their views of the marketplace. Which categories deserve an Oscar and which got a rotten tomato? The envelope please.

• Milk. Protein alone won’t increase consumption of this most basic dairy beverage. Page 30

• Cheese. The artisan cheese movement fuels bold flavors. Natural cheese wins over its processed cousin. Page 38

• Cultured Dairy. Greek yogurt stars. Elsewhere in the cultured dairy case, exotic flavors, on-the-go products and a high-protein emphasis are showing up. Page 48

• Ice Cream. The bakery aisle inspires new flavors. 8• Butter. New flavors and more convenient packaging are

the stories here. Page 66• Nondairy Beverages. Sales of refrigerated, ready-to-drink coffee

soar and refrigerated juices and juice blends do well, too. Page 68• Ingredients. Suppliers help in writing clean labels and

operating green business. Page 74• Exports. The world discovers U.S. dairy ingredients.

Exports rise 20%. Page 80


Follow us on Twitter twitter.com/DairyFoods

COLUMNS

10 Jim Carper

20 Eat. Drink. Dairy.

84 Supplier News

94 Alison L. Krebs

NEWSLINE

12 In Memoriam: Tip Tipton

14 U.S. dairy exports will rise 25%

15 Specialty cheese/robust flavors trending

16 Chobani funds training program at Cornell

INGREDIENTS

74 Key trends: clean labels and added protein

SHOWCASE

86 Equipment, ingredients for dairy processing

20

86

DAIRY FOODS ONLINE

www.dairyfoods.com

• Survey: How do you prefer to buy milk?• Top 5 most emailed stories:

1. Some like it… cold? Sales of iced coffee, tea2. Opportunities rise for on-the-go dairy snacks3. Dutch Farms exports its way to success 4. Time to tout protein in dairy foods5. Former IDFA president Tip Tipton has died

at age 78• Vote for your favorite dairy movie poster.• Behind the Scenes. Unpublished photos of

dairy plants, including HP Hood, Bel Brands and Westby.

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On the cover

What’s showing at the Dairyplex tonight? We overlaid a movie theme on our annual State of the Industry review of dairy foods and beverages. Which category found box office success and which laid an egg? The first movie is M*I*L*K, beginning on page 30.

Illustration for Dairy Foods by Chris Pirrone, BNP Media.

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THE EDITOR’S PAGE by Jim Carper

The state of the dairy industry is good. Sales are up in many catego-ries, exports of dairy ingredients are booming, processors are developing

new products, the industry is touting the inherent nutrition in milk and suppliers are addressing flavor, sweetening, color and sus-tainability issues.

That’s not to say the industry is without problems. Sales of fluid milk continue to decline. Government regulations of milk prices and standards of identity stifle inno-vation and add costs. Animal-welfare activ-ists, if they can’t get dairy farmers to stop de-horning or tail docking, are turning their sights on processors to pressure them not to buy milk from those producers. The dairy processing establishment is gearing up to re-fight GMO labeling again. California residents defeated a referen-dum once already but the issue of mandatory labeling of the use of genetically modified organisms is returning and spreading to other states.

That is a summary of our annual State of the Industry report (beginning on page 28). To prepare this series of eight articles, Dairy Foods editors and contributors talked with more than 100 dairy processors, association executives, research analysts and ingredient suppliers to identify the strengths, weaknesses, oppor-tunities and threats to dairy foods and beverages and the compa-nies that manufacture them.

Milk has protein

The overriding theme among processors of fluid milk, cheese, cul-tured dairy foods and dairy ingredients is that milk has protein. Protein is the new calcium. The industry has successfully linked milk to calcium to bone health. Now it wants to make the public aware that protein builds muscle and has other benefits (like sati-ety, to tame overeating).

The Milk Processor Education Program’s advertising agency developed a clever “Protein Fight Club” campaign that humorous-ly depicts milk defeating various breakfast foods, including orange juice and a breakfast burrito. I take issue with the segment pitting milk against cream cheese on a bagel. The ad agency should have heeded Ronald Reagan’s 11th commandment, which I’ll para-phrase as: “Thou shalt not speak ill of any fellow dairy product.” You’re on thin ice, milk. Greek yogurt and cottage cheese will clean your clock in any protein fight.

Milk isn’t just for drinking, and fluid pro-cessors need to expand their thinking. Look at how cheese and yogurt companies market their products as ingredients as well as foods. It’s time for milk marketers to tap into con-sumers’ interest in cooking and develop reci-pes calling for cups of milk.

Another trend, the local food movement, helps local dairy processors compete against larger regional brands. These companies can play up their hometown roots and their proximity to milk sources. Larger processors, to buffer them-selves from the decline in fluid milk, are going to have to look to export markets and find other products that can be processed on their lines. These processors will have to invest in extended shelf life and aseptic processing systems. One new product is Kellogg Co.’s nonfat milk-based

beverage, which is being made for the cereal maker by a dairy processor.

Tapping into trends

Cheesemakers benefit from consumer interest in locally produced foods. In our conversations with these dairy processors, we fre-quently heard the adjectives artisan, small-batch, hand-crafted and limited-production. We had to remind ourselves that the talk was about cheese, not beer.

Cheesemakers, butter churners and ice cream processors have all discovered the power of flavors and ingredients to excite consumers. Red pepper and wasabi spice up cheeses. Sea salt and cracked pepper give butter a savory element. Ethnic fruits and vegetables are flavoring ice cream. Who’s up for a scoop of green tea matcha ice cream?

Then we come to the dairy industry’s golden child: Greek yogurt. Processors can’t buy and install the necessary technol-ogy needed to make this food fast enough. If they don’t have the muscle and marketing wherewithal to promote their own brand, they are finding plenty of opportunities in the private label world.

I have followed the farm bill debate from a distance. Dairy produc-ers and dairy processors are doing their best to protect their inter-ests, as they should. But they are going to have to cooperate because their fates are intertwined. Farmers need buyers and processors need milk. Allow me another paraphrase, this one from Rodgers and Hammerstein’s Oklahoma!: “The farmer and the milkman should be friends.” And when that’s the state of the industry, all will thrive. �

Jim Carper is chief editor of Dairy Foods. Phone: 847-405-4009 • Email: [email protected]

Dairy walks the red carpet Hollywood inspired our annual review of dairy foods and beverages. For the

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NEWSLINETrends, marketing, regulations and people in dairy processing.

E.Linwood Tipton, the formerpresident of the International Dairy Foods Association, has died at age 78.

Known to all as Tip, Mr. Tipton was the president and CEO of the Milk Industry Foundation and the International Ice Cream Manufacturers Association. In 1990, he pulled together the Milk Industry Foundation, the National Cheese Institute, and the International Ice Cream Association to form the IDFA.

He told Dairy Field magazine (later acquired by and merged into Dairy Foods) that his favorite dairy foods were pralines and cream ice cream, blue cheese, cottage cheese and chocolate milk.

Mr. Tipton retired from IDFA in 2003 and was succeeded as president and CEO by his wife, Connie, who continues to run the association.

“He had a long-term view of where our industry needed to go and imple-mented many effective initiatives to help us get there,” said IDFA Chairman Mike Nosewicz in a statement. Nosewicz is vice president, Fresh Dairy, The Kroger Co., Cincinnati, Ohio.

Mr. Tipton was born on Nov. 19, 1934 in Adrian, Mo. He grew up on his fam-ily’s farm, where he developed an interest in agriculture. He owned a horse named Trigger (after Roy Roger’s mount). In grade school, he caught live rabbits for a labora-tory testing company and rode his horse from trap to trap. As a young man, he spent two summers picking up milk cans at dairy farms, driving them to a processing plant

in Kansas City and unloading them. “It was hard work,” he told the magazine.

He attended the University of Missouri where he earned a bachelor’s degree in agri-culture and a master’s degree in economics. After serving as an officer in the U.S. Army Finance Corp, Mr. Tipton returned to the dairy industry. He worked as an econo-mist for a milk producers cooperative in the Northeast during the 1960s, and led a Boston-based economic consulting service, according to Dairy Field.

In 1965, he joined the milk and ice cream associations and became president and CEO in 1987. He was a co-founder in 1967 of the Petlin hotel/motel and restau-rant chain, which grew to more than 30 properties. He served as chairman of the board and CEO until its sale in 2000.

According to a tribute on the U.S. Senate floor by Sen. Mitch McConnell in 2003 (when Mr. Tipton retired from IDFA), “Tip led the way in the creation of the extremely successful Milk Mustache and Got Milk? marketing campaigns. His knowledge of the dairy industry and the economy has encouraged Secretaries of Agriculture and U.S. Trade Representatives of both political parties to seek his counsel.”

The Milk Processor Education Program (MilkPEP) was implemented in 1993. It was not immediately popular with all milk processors who made up some of the mem-bership of IDFA. “It was the only time I thought I might get fired,” Tipton recalled in a 2003 interview.

“The fact that we have a MilkPEP pro-gram and a vision that milk can be more

than a white gallon commodity is largely due to Tip’s industry vision and hard work,” said his wife in 2003. “One of the most successful promotion campaigns that has ever existed, the milk mustache campaign is the result of Tip’s vision that there could be more.”

Other achievements during his tenure at IDFA include the creation of the annual Capitol Hill Ice Cream Party (1983), pro-moting the idea of a National Ice Cream Day and National Ice Cream Month (for-mally declared by President Reagan in 1984), the establishment of the annual Dairy Forum (1985) and the creation of the International Dairy Show (1988)

President Reagan in 1984 appointed Mr. Tipton to the National Commission

IN MEMORIAM 12

Tip Tipton, the man who

pulled milk, cheese and

ice cream associations

into the IDFA, passed

away in October.

DAIRY EXPORTS 14

The U.S. Dairy Export

Council projects that this

year’s value of U.S. dairy

exports will rise 25% over

2012.

FOOD TRENDS 15

As consumer palates

evolve, so does demand

for specialty cheese and

robust flavors, according to

the International Dairy-Deli-

Bake Association.

DAIRY GIFTS 16

Yogurt maker Chobani

donates $1.5 million to

establish a research and

training program at Cornell

University.

Tip Tipton, former IDFA presidentTip Tipton was a man of many interests. He grew up on a farm, studied economics, ran a

hospitality company and created the modern-day International Dairy Foods Association.

� E. Linwood “Tip” Tipton, 1934-2013


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on Agricultural Trade and Export Policy.Besides his work in the dairy industry, Mr. Tipton founded the International Sweetener Colloquium in 1981 so sugar and sweetener-using industries could assemble and discuss sugar policy.

Mr. Tipton served on the board of Wimm-Bill-Dann Foods, Russia’s largest dairy, juice, water and food company (later acquired by

PepsiCo). He was a past president and chair-man of the board of the National Economists Club and the National Economic Education Foundation. He was active in the Washington, D.C., community by serving on the Main Street restoration project’s board of directors.

He is survived by his children Mark Acklin Tipton and Kelly Ann Tipton; Connie Tipton’s children Andrew James Broadstone

and Madeline Broadstone Sigrist; and five grandchildren (Miles Tipton, Henry and Noah Broadstone, and Eli and Isabelle Sigrist). Donations in his memory may be made to the Dairy Recognition and Education Foundation (www.dairyfund.org), which provides financial assistance for graduate students in dairy science or a related field. �

U.S. dairy exports expected to rise 25% in 2013

The U.S. Dairy Export Council, Arlington,Va., projects that by the end of this year

the value of U.S. dairy exports will total $6.5 billion, up more than 25% from 2012. Barring a dramatic change in market condi-tions, 2013 will mark a fourth consecutive record year for U.S. dairy exports.

“Credit for another record year for U.S. dairy exports must go to our suppliers and traders, who are showing more ambition, more commitment and more capability to pursue export markets,” said USDEC President Tom Suber, a Dairy Foods col-

umnist. USDEC is funded primarily by dairy producers through the dairy check-off program.

Suber, speaking at USDEC’s annual board and membership meeting in Chicago in October, said U.S. exporters have capital-ized in 2013 on reduced supply from other countries, steady global dairy demand and favorable pricing. More than 15% of U.S. milk production now goes to exports.

“Reliance upon exports is not just an aspiration in our industry. It’s a reality,” said Suber. “Looking ahead, the reality is that

exports must not just continue, but contin-ue to grow. Put another way, exports must grow or our industry largely stagnates.”

In a separate address, Tim Hunt, global dairy strategist for Rabobank, said a global shortage of dairy products is expected to continue, driving continued growth for U.S. exports in 2014.


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Yogurt, specialty cheeses are top consumer trends, says IDDBA

The food industry is feeling ripple effects from ris-ing food and fuel prices, new benefit costs due to

the 2010 Affordable Care Act, modest income growth following the 2013 payroll tax increase, and weak consumer confidence due to fiscal uncertainty. That’s according to “What’s in Store 2014,” an annual trends publication of the International Dairy-Deli-Bakery Association, Madison, Wis.

Price, convenience and health are now implicit in the fresh food value equation. Digital platforms and personalized promotions are encouraging the “de-averaging” trend. Showrooming, geo-fencing and price-matching are becoming more prominent in retail. “Channel surfing” is cutting grocery trips as shrinking household size cuts trip volume.

Transparency is critical as many shoppers, particularly younger ones, demand more information on food origins, ingredients, and nutritional content. Authenticity, fusions and regionalism are drawing strong consumer interest as bold new cuisines serve up a fresh cache of global flavors and ingredients.

A taste for specialty cheese

As consumer palates evolve, so does demand for specialty cheese and robust flavors. U.S. cheesemakers and retailers are embracing affinage to meet demand. Specialty cheese

“In the next six months, the United States is likely to be the region with the most additional supply available to grow exports,” Hunt told USDEC members. “In addition, the United States looks to be entering a period of enhanced com-petitiveness.”

Meanwhile, key buyers, most notably China, are looking to diversify their supply.

“Therefore, the time is right to vig-orously pursue export development,” Hunt said.

In a keynote address, Yale econo-mist Jeffrey Garten predicted “a third industrial revolution, led by the United States,” which will benefit from increas-ing energy independence, innovative public-private partnerships and techno-logical prowess.

“It’s a world of complexity, of big change, where there are lots and lots of risks and unknowns,” said Garten. “But as your industry has shown, it’s a world where those who are strategic and under-stand the risks can do extremely well.”

— Contributed by USDEC. For more on dairy exports, turn to page 80.


DAIRY GIFTS

accounts for nearly two-thirds of delicheese sales. Retailers seek to entice more sales by expanding their cheese sections and providing cheese mongers behind the case. Restaurant offerings influence cheese at retail as traditional foods from burgers to mac and cheese to grilled cheese go upscale with specialty cheeses, like Gouda, Brie, blue and goat.

Interest in Latin and Mediterranean cuisine is appearing in the cheese case as consumption of varieties like queso fresco, Cotija and feta rises. Millennials, dubbed the “cheese generation,” have had more exposure to specialty and artisan cheese varieties, developing more adventurous palates. This makes them ideal customers for authentic cheeses in convenient forms.

Dairy is one of the most frequently shopped grocery departments — 36 trips per year. New product introductions are robust at approximately 12,000 to 13,000 products annually. Yogurt shows strong growth trends. Sales projected to 2017 show an anticipated 17% growth (an esti-mated $9.1billion US). It’s a growing break-fast and snack category.

3 mega-trends affecting dairy

Three macro factors impacting the dairy case are: decreasing U.S. middle-income households, diversity of shoppers by age and ethnic group, and access to smart technologies (encouraging unprecedented levels of transparency).

Watch for dairy processors to boast pro-tein content and treatment of health issues, messages about dairy’s nutrients beyond calcium and weight management, tout dairy as an excellent agent for prebiotics and probiotics, and stress satiety effects. Dairy to-go trends include products with longer shelf-lives, as well as occasion-spe-cific desires (mid-morning snacks), and complete convenience (serving utensils included).

“What’s in Store 2014” is composed of six comprehensive chapters: State of the Industry, Consumer Lifestyles, Bakery, Cheese, Dairy and Deli. To order the report, visit iddba.org/wis.aspx.

— Contributed by IDDBA. Read more about trends in dairy foods and beverages

in Dairy Foods’ 2013 State of the Industry report, beginning on page 28.

Chobani gift to Cornell promotes dairy research

In October, Chobani Inc., New Berlin,N.Y., donated $1.5 million to Cornell

University, Ithaca, N.Y., to promote inno-vation in dairy and food science. In a press release in October, Chobani stated “the partnership marks an important step in elevating the broader dairy industry and New York State’s role as a Greek Yogurt leader through innovative research and reinforces Chobani’s continued focus on manufacturing and quality.”

“Cornell’s Department of Food Science is one of the leading programs of its kind

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Center for Dairy Research assists in beverage development

Two graduates from the University of Wisconsin-Madison turnedto the Wisconsin Center for Dairy Research to help them create

a protein-rich, isotonic beverage with no artificial colors or flavors called BadgerMax.

Andrew Berns and Brandon Duck, graduates of the UW-Madison Executive MBA program, became business partners in a sports drink venture. They met with several coaches, companies and R&D special-ists to gain insight into the sports drink market. After their research, Berns and Duck determined that their line would need to consist of an isotonic beverage, high pH premium spring water and a protein-rich isotonic beverage that could be manufactured in powder form as well as in a ready-to-drink bottle.

“We contacted CDR in April of 2012 and we were put in touch with K.J. Burrington,” said Duck. “K.J. was able to do what no one else could. She formulated a protein-enhanced sport drink that athletes will enjoy drinking.”

CDR Dairy Ingredients and Functionality Coordinator Burrington had been working on the development of protein-rich isotonic bever-ages since 2005, so she was prepared to help BadgerMax develop both the powder and RTD protein products they needed for their line. Whey protein isolate was chosen as the source of protein for the drink.

“It was also important for the product to have a clean label, so we worked hard to limit the number and types of ingredients and also create a clear, heat-stable product,” said Burrington.

BadgerMax and CDR developed a grape flavor and a fruit punch flavor. A bottle contains 12 fluid ounces and 12 grams of protein, a similar ratio to the protein available in milk (approximately 1 gram per 1 fluid ounce).

“Protein-rich recovery drinks are an excellent option for athletes as they generally contain a 4 to 1 or 3 to 1 ratio of carbohydrates and protein,” said Burrington. “The combination of carbohydrates and protein equals a better recovery for athletes than just carbohydrates alone and the isotonic elements provide electrolytes to the athletes.”

— Adapted from CDR’s “Dairy Pipeline.”

globally — a match to Chobani’s leading role in Greek yogurt and our mission to bring better food options to everyone, said Chobani President and Chief Operating Officer David Denholm.

“This partnership will strengthen the science behind New York’s dairy industry and help us better accomplish our land-grant mission to bring new information, technologies and a well-prepared work-force to this expansive industry,” said Kathryn J. Boor, the Ronald P. Lynch Dean of the College of Agriculture and Life Sciences. “Our goal is not only high-quality dairy products, but also economic growth in communities that need it the most.”

Chobani’s gift will establish a research and training program that will support graduate student research along with work force devel-opment in dairy quality. Chobani also named Alejandro Mazzotta Vice President of Global Quality, Food Safety, and Regulatory Affairs.

USDEC’s GlobalDairy Outlook: 2014

Register Today For This FREE One-Hour Webinar!

Date: December 3rd | Time: 2:00 p.m. EST

The U.S. Dairy Export Council is back with its 7th annual “State of the Industry” outlook call! Join us for our yearly look around the corner at the drivers and dynamics of the global dairy business – and what to expect in the year ahead. Will global supply bounce back in 2014? What’s the demand prognosis? And what do U.S. suppliers need to do to defend the market share gains they earned this year? Our expert panelists will present a lively dialogue around the major factors shaping the global dairy sector and what’s in store for 2014.

Webinar highlights include:

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invested 26 million Swiss francs (about $29.1 million) to extend

its ice cream factory in 6th of October City, Egypt (about 18 miles

from Cairo). Ice creams produced there are distributed locally

and exported to Jordan, Libya, Lebanon and Tunisia. The factory

also produces the super-premium Mövenpick products that are

exported to Malaysia. Nestlé Egypt has three factories and seven

distribution centers, and employs more than 3,000 people.

A new implementation guideline for leveraging GS1 global stan-

dards for traceability business processes in the dairy, deli and

bakery supply chain was released in October by the Interna-tional Dairy-Deli-Bakery Association, the International DairyFoods Association, and GS1 US.

Fonterra announced its plans to invest $72 million at its Clan-

deboye, New Zealand, mozzarella plant as it further expands its

global foodservice capabilities. It will double the capacity of the

plant to produce individual quick frozen grated mozzarella. The

upgrade is due to be completed by September 2015.

Dairylea Cooperative Inc.’s board of directors has voted to

merge with Dairy Farmers of America. DFA’s Board of Directors

has endorsed the merger. Dairylea members will vote during a

special meeting in February 2014.

Oakhurst Dairy, Portland, Maine, is donating five cents to The

Salvation Army for every container of egg nog sold during the

winter holiday season. Over the last 14 years, Oakhurst has

donated more than $220,000, which equates to more than 4 mil-

lion containers of egg nog sold. The company has a new seasonal

flavor: Buttered Rum. A weekly Facebook contest awards winners

a variety pack of egg nog flavors.

Ernesto Fajardo is the new president and CEO of Alpina, Sopo,

Colombia, succeeding Julian Jaramillo, who retired after nearly 10

years in the role. Alpina Foods, the U.S. arm of Alpina, continues

to be led by General Manager Gustavo Badino. The company has

a yogurt processing plant in Batavia, N.Y.

Sandy Toney of Masters Gallery Foods Inc., Plym-

outh, Wis., was selected as the Assistant Chief

Judge for the Wisconsin Cheese Makers Associa-

tion’s World Championship Cheese Contest. She is

the first woman to hold that title. Toney is Masters

Gallery Foods’ vice president of corporate quality

and product development.


Heluva Good! launches Greek-style yogurt dips, Prairie Farms adds Greek yogurt to its line

and Top O’ The Morn Farms introduces Root Beer milk.

ROOT BEER MILK Tulare, Calif.-based Top O’ The Morn Farms introduced reduced-fat Root Beer milk to its line. The milk is sold in one-quart glass bottles for a suggested retail price of $3.19 (plus a $2.00 bottle deposit). Each serving contains 4.5 grams of fat and 7 grams of protein.

ARTISANAL CHEESES Vermont Farmstead Cheese Co. (VFCC), Woodstock, Vt., introduced two additions to its award-winning line of artisanal cheese — savory Sage WindsorDale and tangy Windsor Blue. VFCC’s cheeses are all-natural, rBGH-free and made with 100% Vermont milk. The new flavors join the other flavored WindsorDales (a raw, British-style hard cheese) includ-ing cranberry, blueberry, chocolate stout and cracked pepper flavors.


Scan this code with a smart phone to see more products online or visit dairyfoods.com/EatDrinkDairy. Submit your new products to [email protected].

GREEK YOGURT A new line of Greek yogurt in seven thick and creamy fla-vors is now available from Carlinville, Ill.-based Prairie Farms Dairy. The flavors include black cherry, pineapple and peach. Each 6-ounce cup contains 14 grams of protein and is made with nonfat yogurt and natural ingredients. The yogurt is sold for a suggested retail price of 99 cents.

PREMIUM GELATO AND SORBET Roba Dolce, Pomona, N.Y., announced a partnership with Ocean Spray to create its newest line of all-natural, premium pints of gelato and sor-bet. The Ocean Spray & Roba Dolce portfolio includes nine individual pint offerings, five sorbets and four gelatos. The gelato flavors include dark chocolate with cherry Craisins dried cranberries. The sorbet fla-vors include cranberry raspberry lime. The suggested retail price for each pint is $3.99.

GREEK-STYLE YOGURT DIPS Heluva Good!, a brand of HP Hood LLC, Lynnfield, Mass., launched four new Greek-style yogurt dips: French Onion, Herb Ranch, Southwestern Chipotle and Fire Roasted Vegetables. The dips are available in 12-ounce containers for a suggested retail price of $2.99. Each dip contains about 40 to 45 calories, 2.5 grams of fat and 2 grams of protein per two table-spoons serving.


“If there is a tired cliché that I’d love to have disappear,it’s that the United States is not a consistent dairy exporter. That changed at least five years ago,” said Peter Gutiérrez, vice president of global ingredient

sales, of Methuen, Mass.-based Agri-Mark. Gutiérrez should know. Agri-Mark has done more than its

share to change the United States’ reputation from a casual exporter dabbling in foreign markets to a major player on the world stage. In fact, Agri-Mark’s passion for exports, success in building its now-sizable international business and extensive precompetitive efforts to elevate whey protein as a high-value ingredient are why Dairy Foods named the company the recipi-ent of the 2013 Tom Camerlo Exporter of the Year award.

Since it began marketing whey products overseas in 2003, Agri-Mark has grown into an export force, annually shipping 15% to 20% of its nonfat dry milk, around 60% of its whey pro-tein concentrate (WPC) and at least 95% of its whey permeate to more than 30 countries.

“Agri-Mark has a pioneering spirit and is bold in pursuing export opportunities in diverse markets around the globe,” said Marc Beck, executive vice president, strategy and insights, U.S. Dairy Export Council, Arlington, Va. “Name a country on the map, and Peter has probably been there as a memorable ambas-sador for U.S. dairy.”

Backbone of success

Ambassador is an apt descriptor. A large part of Agri-Mark’s export success is directly attributable to its personal, hands-on approach.

“We invite our customers to come see our plant, go out to our farms, meet our people. We especially do that with overseas visi-tors. Many customers haven’t seen the back end of a cow,” said Gutiérrez. “At the end of the day, it is the human factor — meet-ing people face to face — that builds the business. Phone and email are great but you have to put a face behind the voice. You need to go in with your hands above the table and a smile on your face and earn their confidence,” Gutiérrez said. “The exchange of information will allow you to become friends and, hopefully, their vendor of preference.”

Agri-Mark’s customer-oriented service carries through all aspects of the manufacturing, sales and distribution processes.

The company regularly works with end users to start a dia-logue, determine their experience with WPC and permeate, and often offer usage instruction. Despite the growing popularity of whey ingredients, many buyers, particularly smaller companies, still lack knowledge of the intricacies of WPC applications, func-tionality, nutrition and regulation.

“When you get close to their R&D people, you find out exactly what it is they are looking for,” said Gutiérrez.

By Paul Rogers, contributing editor

The Massachusetts-based dairy cooperative sells 20% of its nonfat dry milk, 60% of its

whey protein concentrate and 95% of its whey permeate to more than 30 countries.

Agri-Mark feeds its passion for exports


The company literally goes extra milesto meet customer expectations. In June, for example, Agri-Mark sent samples of WPC80 to an infant formula buyer that requires pre-shipment testing. The cus-tomer turned down the full shipment, claiming its tests indicated high nitrite levels. But because the customer was under a tight deadline, Agri-Mark took extraordinary steps.

“We airlifted 5 tons across the water,” said Gutiérrez. “Two months later, I received an email from the same purchas-er: ‘Peter, our lab goofed. The product you originally sent in June was perfect.’ We spent $15,000 in air freight when we really didn’t have to.”

The retraction did not surprise Agri-Mark. The company has spent around $100 million to upgrade plant operations over the past decade with an eye toward quality. That included a new warehouse at its Middlebury, Vt., whey plant in 2010 specifically to facilitate exports.

All four Agri-Mark manufacturing plants — Cabot and Middlebury, Vt.; Chateaugay, N.Y.; and West Springfield, Mass. — are in their fourth year of SQF 2000 Level 3 certification, which has had a direct and positive impact on product quality and export success.

In 2003, 90% of Agri-Mark’s WPC 80 went into sports nutri-tion. Now, less than 40% does, with the remainder used in high-er-value applications like infant and medical nutrition. For per-meate, close to 70% goes into human food rather than pig feed — “among the highest of all the whey permeate producers in probably the globe,” Gutiérrez said.

“We’ve slowly recognized internally how good our product really is, and we continue to adapt and make sure we are invest-ing in processes and lab tests that we didn’t do five years ago,” said Gutiérrez . “But at the end of the day, Agri-Mark’s forte is that a high percentage of Cabot Cheddar cheese is aged 12 to 48 months. To make cheese stored that long, you have to have incredibly clean milk. Our farmers do an incredible job to ensure proper dairy barn sanitation and have a very healthy milking herd. What we look for in cheese provides similar benefits to the whey side of the business.”

Roots of the whey operation

Middlebury manufactures 21,000 tons of whey permeate, nearly 4,000 tons of WPC and 6,500 tons of other whey products annu-ally. The decision to build and commission the plant was really the start of Agri-Mark’s export surge. But it might just as easily never have happened.

Agri-Mark is a relatively small co-op with just 1,200 family farms. The $20 million whey plant built in 1999 — a completely new business at the time — was a major undertaking.

In the mid-1990s, the co-op was still focused on its recent merg-er with Cabot, and to top it off, “milk prices were horrible at the time,” said Richard Stammer, Agri-Mark’s chief executive officer.

The co-op held a meeting of its farmer-representatives to explain the plans, and they voted in favor.

“It was remarkable under the circumstances,” Stammer said. “It is a tribute to our farmer-members who had the wisdom to invest in a whey protein facility when the market was still in its infant stages.”

It helped that the facility would create a new revenue stream and eliminate rising whey disposal costs. In addition, Agri-Mark had already lined up a buyer to take the first three years of pro-duction and significantly alleviate sales pressure.

In October 2000, Agri-Mark made its first shipment of WPC 80 from Middlebury. Within a few years, the company had calls from both domestic and overseas customers looking for WPC 80 and whey permeate.

“Our entry into the export market and the success that we have had for a small cooperative is really a tremendous risk-to-reward story,” Stammer said.

The past six years have been the most profitable in the history of Agri-Mark. In 2012, milk and manufactured product sales reached $880 million. (The co-op ranks No. 38 on the Dairy 100, Dairy Foods’ annual ranking of the largest dairy companies based in the United States and Canada.) Profits exceeded $10 million, in addition to a record $21 million paid to its farmers for high milk quality and other premiums.

For the greater industry good

While Agri-Mark has kept a clear eye on growing its own export business, the company has also been an eager and energetic force

� Agri-Mark Family Dairy Farms CEO Richard Stammer (beige trousers) is surrounded by (from left) Chairman of the Board Neal Rea, Vice-President, Global Ingredient SalesPeter Gutierrez, Senior VP of Plant Operations Ed Pcolar, Senior VP of Operations James Pratt and Middlebury Plant Manager Tim Opper.

EXPORTER OF THE YEAR

in expanding U.S. dairy exports as a whole. Agri-Mark was one of thefounders of the Whey Protein Research Consortium, a precompetitive forum to fund research into whey protein’s health benefits.

“Those efforts ultimately help everyone,” said Gutiérrez. “A high tide raises all boats. As an industry, we’ve done a good job of creat-ing excitement about whey proteins.”

Gutiérrez is also an active participant in the whey promotional efforts of the American Dairy Products Institute, is a former vice chairman of the USDEC Ingredient Committee, plays an active role in USDEC’s Market Access & Regulatory Affairs and Trade Policy Committees, and represents Agri-Mark and U.S. dairy at trade shows like the Middle East’s Gulfood and on USDEC reverse trade missions that bring overseas buyers to the United States to build relationships with suppliers.

“Agri-Mark has always looked at exports strategically with a clear idea of how to build sales across its product lines,” said USDEC President Tom Suber. “Just as importantly, it has actively contributed to and led efforts to develop the industry’s export tools to bring pre-competitive commercial impact.”

The company continues to work in concert with USDEC and others to create new and potentially large market opportunities. Agri-Mark helped USDEC prepare a 70-page document, subse-quently translated into Chinese and presented to the Chinese Ministry of Health, to prove that whey permeate is a safe ingre-dient for food use. Outdated Chinese regulations allow permeate only in pig feed, and the country is extremely cautious to revise its food code given recent food safety issues.

“China and India have two of the largest cookie and biscuit industries in the world. Just think of the financial return to U.S. dairymen if we could get U.S. whey permeate into China and India for human food applications,” said Gutierrez.

“Agri-Mark stands out for its passion about opening the door to new opportunities for U.S. dairy exports, whether that is removing market access barriers to U.S. dairy in India or Russia or overcoming con-straints that prohibit the use of whey permeate for food in China,” said Kristi Saitama, USDEC vice president, export marketing ingredients.

Long-term vision

Market opening takes time. But Agri-Mark expects that. Its vision has always been long-term.

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EXPORTER OF THE YEAR

“I was on the first USDEC trade mission in 1996, and one com-pany I met on that trip still buys products from us,” said Gutiérrez.

Agri-Mark has provided whey product samples to dairy sci-ence departments at U.S. universities, as well as for the inaugural USDEC Whey Protein Food Science Student Product Innovation competition in Egypt in 2012.

“We are planting seeds that are not going to produce sales results in near term. But in three to five years, those seeds ger-minate,” said Gutiérrez. “One thing we want to do is have our brand name recognized by these students doing nutritional and product development. When they see the Agri-Mark bag in their university lab, then graduate and go to the industry, they might say, ‘Hey I remember that Agri-Mark bag and that logo.’”

Also in its long-term sights is Africa, which Gutiérrez calls the last great frontier, with “huge opportunities for U.S. dairy.”

A greater cheese presence internationally is another possi-bility. Although Cabot brand cheese can be found at retailers throughout the world, cheese has not been an export priority — mainly due to the company’s overall cheese strategy.

“We make high-end Cheddar. We want to go up the value chain. We have invested many millions of dollars in a state-of-the-art cut-and-wrap facility in Cabot,” said Gutiérrez . “We really don’t want to export 40-pound blocks of cheese. We want to export in retail packaging, and we are looking for opportuni-ties to do that.”

Gutiérrez believes not only Agri-Mark but the entire U.S. industry is on the right track. He points to recent U.S. projects to build whole milk powder (WMP) capacity to target exports as “a great thing . . . as long as the product being manufactured is the product desired by foreign buyers.”

He believes it might take a while for the United States to make a name in the global WMP sector, but he has no doubts we will get there.

“I have huge respect for other dairy powder producers in this country. Everyone wants to make a better product all the time. As a nation, we are making a better quality exportable dairy powder, whether it is lactose, nonfat dry milk, whey or WPC80,” said Gutiérrez. “I believe we are a consistent export-er. I also truly believe that anywhere in the world where you see ‘Made in USA’, it commands respect, admiration and con-sumer confidence that it is a quality product.” �

• 2013 Agri-Mark• 2012 Glanbia USA• 2011 Leprino Foods • 2010 United Dairymen of Arizona*• 2009 Hilmar Cheese • 2008 Schreiber Foods • 2007 Darigold • 2006 Davisco Foods

Note: In 2010, the award was renamed to honor James P. “Tom” Camerlo, a long-time dairyman and former chairman of the U.S. Dairy Export Council.

The Tom Camerlo Exporter Of The Year

Hollywood inspires our annual State of the Industry review of foods,

beverages, ingredients and exports. Milk is the leading actor, supporting

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State of the

Industry

The gallon jug is dead. Long live thegallon jug.

The International Dairy Foods Association noted that “per cap-

ita consumption of fluid milk products declined in 2011 by 6.2 pounds or 0.71 gal-lons. The 174.3 pounds (20.3 gallons) of fluid milk products consumed in 2011 was the lowest level of per capita consumption on record.”

Due to declining family sizes and dining habits, the plastic jug on the breakfast table is not as relevant as it was a generation ago. Breakfast for many Americans is eaten on the go, if eaten at all.

Fluid milk processors have taken note. They have turned to alternative packag-ing and alternative channels of distribu-tion. (Most milk is sold in gallon contain-ers at food and drug stores.) Talk to any processor and the adjective “to-go” comes up. Resealable bottles containing 10 to 16 ounces are gaining favor. So are smaller, 8-ounce aseptic packages. Processors place these packages in convenience stores.

Milk, the most basic and least processed product in the dairy food group, is undergo-ing changes. Dairy processors have expanded their view who buys milk. Seeing the poten-tial in export markets, especially China, milk processors have invested in aseptic technol-ogy so they can ship milk long distances without the need for refrigeration.

Tom Gallagher, chairman of Dairy Management Inc., Rosemont, Ill., said dairy farmers told him that they are ready to produce more, but they want to know if the fluid-milk processing industry was committed to milk. DMI is an organization

The dairy industry is promoting milk’s role in building muscle. But that alone won’t increase

consumption. Packaging, flavors and channels of distribution have to pull their weight, too.

By Jim Carper, editor-in-chief

Milk fl exes its muscle

The cast: Conventional and organic milk, flavored milk,

coffee creamer, egg nog


State of the Industry

of milk producers funded by the nationaldairy checkoff program.

In extensive conversations with com-panies involved in milk, DMI found new players who are “ramping up investment in fluid milk,” Gallagher said. DMI is helping processors with product devel-opment and testing of fresh, extended shelf-life and shelf-stable (aseptic) prod-ucts. These companies are serious about milk, Gallagher said. He noted that it can cost $30 million to introduce a brand, fol-lowed by millions more for marketing. That’s on top of the costs invested in plant infrastructure.

One nondairy food company with a dairy product is cereal maker Kellogg Co., Battle Creek, Mich. Its new Kellogg’s To Go is sold in 10-ounce bottles (and as a powder to be mixed with skim milk) containing a “protein blend” consisting of water, nonfat milk, whey protein con-centrate and soy protein isolate. A serving has 190 calories and 10 grams of protein (20% of the Daily Value). The shelf-stable beverage is not labeled as milk.

“We are using cereal equities to help drive our growth in some of the nonce-real spaces. So, for example, leveraging the Kellogg master brand to launch the Kellogg to-go beverages in the U.S. That enables us to have a more efficient invest-ment model, so we don’t need to add a significant amount of additional brand building in order to drive that growth as it halos back on the cereal business as

well,” said Kellogg President and CEO John A. Bryant in an earnings call with analysts this summer.

Dairy to-go

Many dairies package milk in single-serve bottles. Milk processors need to offer “grab-and-go” dairy items because that’s how this nation eats. About one in five Americans eat on the go, and to these

Flavor Processor

1. Caramel chocolate milk Winder Farms2. Root beer Top O The Morn3. Dark chocolate milk Natrel (Agropur)4. Coffee milk Oakhurst Dairy5. Cotton candy Shatto Milk Co.6. Lime Primo (Fonterra)7. Marshmallow Emmi8. Vanilla malt Rush (Parmalat)9. Hazelnut cocoa Nöm10. Cinnamon vanilla Promised Land

Source: Dairy Foods research

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consumers it doesn’t matter whether theyconsider it a meal or a snack. A survey by the Chicago-based market research firm Information Resources Inc. (IRI) found that 21% of Americans grab food and drink throughout the day as the opportu-nity arises. IRI calls those who eat on the run “opportunists” (compared to the 79% of Americans who eat three square meals a day. IRI calls this segment “the planners”).

Grab-and-go beverages are growing at a far higher rate than the beverage cat-egory as a whole, according to TetraPak, a supplier of aseptic packaging and pro-cessing equipment based in Vernon Hills, Ill. Citing figures from IRI, Tetra Pak Vice President of Marketing and Product Management Suley Muratoglu noted that energy shots and drinks (the single largest grab-and-go beverage segment) represents one-third of the entire beverage market.

It’s worth noting that retailers have to sell eight pints of milk to equal the vol-ume of a one-gallon container. But on the other hand, the total dollar value of eight pints is greater.

Still, that’s not to say processors can’t find success with larger packag-ing. By no means is the 76-ounce jug by Kemps a portable container. The plastic

cow-shaped jug introduced this year by Kemps, St. Paul, Minn., is easier for chil-dren to handle, said Cindy Sorensen of the Midwest Dairy Association. Kemps

Hiland increases sales, units of low-fat milk

Skim/low-fat milk

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $6,272.5 (2.1) 2,169.0 (2.9)

Horizon Organic $317.8 3.9 69.9 2.5

Prairie Farms $235.9 (0.4) 82.2 (1.8)

Hood Lactaid $228.7 (0.4) 56.7 (0.1)

Deans $165.3 (3.7) 58.0 (8.0)

Land O Lakes $152.7 4.6 51.2 0.2

Hiland $122.3 29.5 40.1 25.1

Hood $101.4 1.0 34.4 (0.3)

Organic Valley $95.2 (1.3) 22.1 (3.1)

Lactaid $84.6 10.4 16.8 8.8

Total category $10,569.8 (2.6) 3,530.0 (3.7)

Total U.S. Multi-Outlet w/ C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains). For the 52 weeks ended Aug. 11, 2013. Source: Information Resources Inc., Chicago



uses the bottle for its chocolate- andstrawberry-flavored milk.

Nutrition and consumers

Whether it is because of obesity, the rise of diabetes or their desire to live a healthier life, consumers are becoming more edu-cated about food and nutrition.

“Consumers care about what they put in their bodies,” said Amy Hendel, a reg-istered physician assistant and consultant to the United Soy Board.

The United Soybean Board’s 20th annual “Consumer Attitudes about Nutrition” found that 35% of those sur-veyed said say they would order soy prod-ucts at restaurants if available; specifi-cally soy milk and veggie burgers.

Soy-milk and other nondairy plant-based milks stick in the craw of many dairy-milk processors because these bev-erages are able to call themselves “milk” without having to conform to the govern-ment’s standard of identify for milk. And unlike dairy-milk processors, the plant-based milk processors do not have to pay prices set by the federal Milk Marketing Orders program.

Another irritant to the dairy indus-try is seeing the word “protein” attached to packages of processed snack bars and other foods. That has led to an industry-wide coordinated campaign to make pro-tein a talking point in any conversation about cow’s milk.

Protein is the new calcium

The dairy industry successfully linked milk to calcium to bone health, said Sorensen. Now the industry wants con-sumers to link dairy protein with muscle building. The timing is right.

Baby boomers are concerned about pro-tein, said Carrie Schroeder, who works in the U.S. office of Fonterra, a global dairy ingredients company headquartered in New Zealand. The company surveyed consumers age 50 and older worldwide about their attitudes and knowledge of health and nutrition. Fonterra found that 59% of so-called “Active Seekers” in the United States seek high-protein products, compared to 49% globally. These Active Seekers are predominately female (60%), driven to make changes for health ben-efits and the most affluent segment of those surveyed.

Americans do not eat enough protein. In a statement about its survey, Fonterra said “breakfast (in the USA) is the most pro-tein-deficient meal, presenting the largest opportunity to increase protein intake and spread consumption across the day.”

That fact is not lost on the Milk Processor Education Program (MilkPEP), Washington, D.C. MilkPEP developed a campaign called Protein Fight Club to call attention to milk’s protein content (8 grams in 8 ounces). Using television adver-tising and videos on its website, MilkPEP pits milk against other breakfast foods, including omelets, orange juice and other dairy foods (cream cheese and yogurt). Predictably, milk wins every round.

Since launching Protein Fight Club in August, MilkPEP said the campaign gar-nered more than 1.16 billion total impres-sions by mid-October and the commer-cials have been viewed 2.5 million times.

Fonterra offers a range of ingredients, including whey protein concentrate, whey protein isolate, milk protein con-centrate and milk protein isolate. The question Schroeder asked is, “How do we message protein?”

“We see processors recognizing the power of protein to include dairy as a key method of delivery,” said Jim Dimataris, director of processor relations for the California Milk Advisory Board. “The protein content has made its way to the front of many packages so the consumer

can quickly identify a protein source they may not be familiar with.”

He noted that protein labeling is most popular on yogurt and drinkable yogurt packaging. Dimataris said some proces-sors are marketing higher-protein milk in white and chocolate as a “dairy beverage.”

Dallas-based Dean Foods Co. introduced a protein-enhanced milk in California, Nevada and Hawaii this year. A 14-ounce sin-gle-serve bottle of TruMoo Protein milk con-tains 25 grams of protein. The extended-shelf-life product is available in chocolate, vanilla, strawberry and cookies n’ cream flavors.

Lucerne, a dairy brand of grocer Safeway, Pleasanton, Calif., introduced Protein Plus dairy beverage with 12 grams of protein in an 8-ounce serving. Another Dallas-based dairy, Borden’s, sells Hi Protein 2%. It has 10 grams of protein in an 8-ounce serv-ing. And promoting protein is old hat for Des Moines, Iowa-based dairy processor Anderson Erickson Dairy.

“We have called out protein in milk for a number of years,” said Director of Marketing Kim Peter.

Beyond the private label

Private-label milk beats branded milk every time in the supermarket. The oppo-site is true in Canada, where consumers are loyal to their branded milk, said Eric Jacobson, marketing manager for Agro-pur in Minneapolis. Agropur is a Cana-dian dairy cooperative.

Hiland, Oak Farms boost unit sales of whole milk

Whole milk

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $244.30 (0.6) 814.2 (1.4)

Horizon Organic $140.59 9.9 31.5 9.4

Borden $128.99 8.1 44.5 7.1

Hiland $78.90 28.4 26.3 23.9

Prairie Farms $78.30 5.5 27.8 3.4

Oak Farms $68.40 18.7 23.3 18.2

Hood Lactaid $68.30 4.5 15.1 4.6

Deans $51.00 (2.5) 17.8 (6.4)

Country Fresh $46.30 (3.8) 14.3 (7.2)

Land O Lakes $45.60 3.3 14.7 0.4

Total category $4,478.70 (0.5) 1,470.3 (1.6)


PROTEIN IS THE NEW BLACKIT ALSO COMES IN WHITEConsumers are clamoring for products with protein. Milk is an easy way for them to get it. Work with your keyretailers to optimize the protein power in milk to boost sales for your brand.

MilkPEP is investing $35 million inmedia support to drive home thenews about milk’s protein.

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A study by The Integer Group andM/A/R/C Research shows that 61% of those surveyed buy private-label milk in the United States.

If DMI’s Gallagher had his way, proces-sors and retailers would stop undercutting the price and making milk a commodity. “There is room for everyone,” he said.

The irony is that branded milk pro-cessors are often the ones manufactur-ing private-label milk because they have the processing expertise and the excess capacity on their production line.

Milk processors are doing their best to add value to distinguish their brands from store brands so they don’t compete on price. For example, they might make a quality claim, like Oregon’s Umpqua Dairy Products Co., Roseburg, Ore., which guarantees its milk is fresh five days past code date.

Other processors add calcium, Omega-3s or protein (like Dean Foods) or remove lactose. The dairy industry continues to address the lactose issue. It feels that many consumers wrongly self-diagnose them-selves as lactose intolerant. This year, the National Medical Association issued an Updated Consensus Statement. It reads in part: “It is important for both African Americans and Hispanic Americans with lactose intolerance to meet nutrient rec-ommendations and it is also essential for healthcare providers to recommend that their lactose intolerant patients consume dairy foods daily.”

Probably the best example of value-added milk is organic milk. In early September, the USDA reported the price difference between a half-gallon of organic and conventional milk was $2.19.

Organic Valley, La Farge, Wis., added a lactose-free whole milk SKU at the request of its customers. The co-op had been selling a reduced-fat version. Also this year, Organic Valley upped the ante with organic milk from grass-fed cows.

Flavors and sweeteners

Flavors are another way for dairy proces-sors to make a splash. According to the Dairy Foods 2013 Ingredient Study, 81% of milk processors plan on using strawberry. Other top flavors are mango (57%), cherry (45%) and blueberry (43%). Banana, pine-apple and raspberry all came in at 41%. Chocolate was not offered as a flavor

choice in the survey, but 55% of milk pro-cessors did say they will increase spend-ing on “other” ingredients, which include chocolate and cocoa, along with fruits, nuts and juices.

Tulare, Calif.-based Top O’ The Morn Farms introduced reduced-fat Root Beer milk to its line in July (see page 20). The home-delivery processor sells the milk in quart glass bottles for $3.19. Each bottle contains 4.5 grams of fat and 7 grams of protein per serving.

Anderson Erickson Dairy, at the request of its customers, developed a stevia-sweet-ened, fat-free, sugar-free flavored milk sold in half-gallons. Adding sweeteners to milk, especially flavored milk, still riles up parents, some of whom seek to remove it from elementary school menus. Perhaps parents would serve their children better by looking in the pantry at home.

“More added sugars calories were consumed at home rather than away from home,” noted a report by the U.S. Department of Health and Human Services. The report, which crunched numbers from the National Health and Nutrition Examination Survey, also con-cluded that “more added sugars calories came from foods rather than beverages.”

The future of milk

Dimataris of the California Milk Advi-sory Board said there are “a great many opportunities for growth in the domes-

tic and international markets for dairy products. ESL milk is a growing category both domestically and internationally as is UHT (ultra-high temperature) milk due to its ability to be shelf stable up to one year.”

MilkPEP’s position is to “defend break-fast,” the time of day when most milk is consumed. It notes that 51% of milk is consumed at breakfast and sees breakfast as an $8.9 billion growth opportunity. Its chocolate-milk Refuel campaign takes aim at the $3.3 billion sports-drink indus-try with the intention of getting athletes to drink chocolate milk instead of Gatorade or similar products after working out.

Another so-called “usage occasion” is right before bedtime. The California Milk Processor Board in April ran televi-sion commercials suggesting that a glass of milk before climbing into bedtime pro-motes sweet dreams. The 30-second sur-realistic ads ran in Spanish and English.

But Gallagher of DMI suggested that the milk industry needs to promote the consumption of milk in social settings, not just at breakfast, which he calls a pri-vate setting. That’s a tactic taken by non-dairy beverages as diverse as soft drinks, juices and alcoholic beverages.

Is the gallon jug of milk really dead? No, but the national trend is not promis-ing. Perhaps geography is destiny.

“We still have a lot of people drink-ing milk” in Iowa and the Midwest, said Anderson Erickson’s Peter. �

Nestle Coffee Mate has no peer

Refrigerated coffee creamer

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Nestle Coffee Mate $1,031.2 6.0 314.8 1.4

International Delight $435.5 22.1 150.5 21.0

Private Label $177.4 9.2 73.6 7.2

Baileys $109.9 22.3 49.2 23.2

Nestle Coffee Mate Natural Bliss $51.4 14.7 19.7 12.1

International Delight Coffee House Insp. $32.7 (60.1) 11.5 (64.8)

International Delight Cold Stone $29.3 113.3 11.0 111.1

Silk $15.9 4.8 7.1 5.0

Mocha Mix $11.3 (7.6) 3.1 (7.0)

So Delicious $6.9 96.0 2.9 90.4

Total category $1,918.8 8.0 651.7 4.7


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State of the

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Among all the growing interestin unique cheese f lavors and with buzzwords like grass-fed and high-protein being tossed

around, one theme remains constant: natu-ral still wins. Consumers want to know where their cheese is coming from, their interest in the local farmstead story remains hot, and they still want clean labels.

In the 52 weeks ended Aug. 11, 2013 the natural cheese category showed dol-lar sales up 2.4% to $11.7 billion and units rising 2.8%, according to Information Resources Inc. (IRI), Chicago. Compared to last year, about 52% of respondents from Dairy Foods 2013 Ingredients Study expect their spending on natural/organic ingredients to increase.

Compare this to the continuing decline in processed cheese sales. In the same time period, IRI’s data show the processed cheese category’s sales down 3.1% to $3.1 billion and units down 3%. Looking at innovation and new prod-ucts this year, the emphasis has been on organic, raw, grass-fed milk cheeses, interesting f lavor combinations and con-venient packaging portions, not new pro-cessed cheese products.

Bold flavors and artisan cheeses

Look around the specialty cheese sections at the store or even the deli counter and inter-esting flavor combinations can be found. Bold flavors and exciting varieties are spic-ing up the market, according to “What’s in Store,” the annual trends publication of the International Dairy-Deli-Bakery Associa-tion (IDDBA), Madison, Wis.

Natural cheese is still the clear winner for cheese processors, while snacking occasions

are on the rise. Plus, consumers’ interest in unique flavors helps fuel the artisan cheese

movement and inspires other processors to create more bold combinations.

By Sarah Kennedy, associate editor

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According to Euromonitor’s Cheese inthe U.S. report, “U.S. cheese consumers are becoming increasingly adventurous, and interested in trying new cheeses with more distinctive flavor profiles.” According to IDDBA, bold, robust and spicy flavors continue to drive business. They include spicy cheeses with wasabi and cumin, as well as fruity cheeses including pear and lime. Coffee, lavender and honey are other trendy cheese flavors.

“We see strong f lavor as driving con-sumer choice. They want bold, inspiring f lavors and are looking for something

new and exciting,” said Director of Marketing/Sales Services Amy Levine at Cabot cheese, Montpelier, Vt., a brand of AgriMark.

Cabot is adding some unique fla-vors with a new line, Farmers’ Legacy Collection. Examples are White Oak Cheddar, Farmhouse Reserve Cheddar and Alpine blend (an Italian-style hard cheese with hints of Swiss and Parmesan flavors). The company also added a new hand-rubbed Everything Bagel flavor to its Cheddar line. The new cheese is encrusted with onion, garlic and poppy seeds.

“In the entertaining category, consum-ers continue to be interested in gour-met and globally inspired flavors and experiences,” said Kimberly Mulcahy, senior communications manager at Bel Brands, Chicago. In answer to that, the company launched a new Boursin Red Chili Pepper flavor in a 5.2-ounce pack-age. Also new from Bel in The Laughing Cow line are Light White Cheddar, and Smooth Sensations Cream Cheese: Chive & Onion 1/3 Less Fat.

Heluva Good!, a brand of HP Hood LLC, Lynnfield, Mass., focused entirely on

Private label dominates overall sales

Natural Shredded Cheese

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $2,450.6 1.4 791.4 1.9

Kraft $775.7 8.9 263.6 11.8

Sargento $332.2 2.2 107.7 0.1

Crystal Farms $126.8 0.02 47.3 -0.8

Kraft Philadelphia $99.5 19.1 35.9 18.8

Borden $69.1 13.0 30.0 15.6

Sargento Artisan Blends $34.3 -6.2 11.8 -8.2

Tillamook $26.8 3.7 7.3 4.2

Di Giorno $26.5 -8.2 5.7 -11.2

BelGioioso $21.8 11.9 5.3 11.8

Total Category $4,192.2 3.2 1,371.4 3.8

Sales sour and soar for Cabot cheeses

Natural Chunks

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $1,185.3 -4.6 335.1 -2.6

Kraft $259.7 2.3 91.2 4.4

Tillamook $180.1 0.4 33.3 4.7

Laughing Cow Mini Babybel $121.2 9.2 26.4 7.9

Kraft Cracker Barrel $118.1 7.1 36.8 25.6

Cabot Vermont $109.2 -14.0 32.0 -10.8

Crystal Farms $92.8 -4.8 36.2 -7.9

BelGioioso $80.3 7.0 16.6 9.0

Cabot $67.7 118.5 21.6 100.5

President $52.3 -4.3 8.8 -5.1

Total Category $3,393.9 0.8 907.9 2.0

For the 52 weeks ended Aug. 11, 2013. Total United States — Total U.S. multi-outlet(supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains).

Source: Information Resources Inc. (IRI), a Chicago-based market research firm.

� Below: This new specialty raw Gouda from Best Cheese features a mixture of spices like cardamom, nutmeg, cloves and cinnamon. Sartori has a similar flavor with its new Chai BellaVitano cheese, a blend of black tea, ginger, cinnamon, cardamom and cloves, to create the Chai flavor (above).



the bold concept with its new line HeluvaGood! BOLD, featuring three flavors — Chipotle Cheddar, Habanero Jack and Special Reserve Extra Sharp Cheddar.

Many of these unique flavors and com-binations are sparked by the continued artisan cheese movement. Thanks to this trend, flavors like fruit, spices and choco-late are showing up in cheese. According to the Dairy Foods 2013 Ingredients Study, cheese processors noted these top five fruit flavors they plan on using: strawberry, blueberry, mango, cherry and raspberry. About 51% of respondents from the same ingredients study expect their spending on other ingredients (e.g. chocolate & cocoa, fruits, nuts and juic-es) to increase. Cheesemakers said they expect to introduce an average of 14 new products in the next 12 months, about the same as ice cream processors, but less than yogurt and butter processors.

“The biggest opportunity is to educate retailers and consumers in order to con-tinue to grow the artisan cheese category. Right now, there is an American artisan cheese movement,” said Chad Vincent, chief marketing officer at Sartori Cheese, Plymouth, Wis. “Consumers are start-ing to look at the United States for artisan cheese and there is becoming a ‘want.’ Consumers are looking for something new to try — something that they can show off to their friends — the specialty cheese cat-egory has some excitement behind it.”

Sartori added a new cheese to its Reserve Family line earlier this year, Chai BellaVitano. The cheese pairs the sweet, creamy and fruity pineapple flavors of BellaVitano with a blend of black tea, gin-ger, cinnamon, cardamom and cloves (traditional chai flavors). The rind is also meant to be eaten.

Best Cheese, Purchase, N.Y., an importer of specialty Dutch cheeses, added a similar flavor to its farmstead Melkbus collection this fall — MelkbusWinter 125. The four-month aged, raw Gouda cheese is spiced with carda-mom, nutmeg, cloves and cinnamon.

Vermont Farmstead Cheese Co., Woodstock, Vt., introduced two additions to its line of artisanal cheese — savory Sage WindsorDale and tangy Windsor Blue. The Sage WindsorDale is created with savory sage leaves and oil of the herb added to the cheese. The Windsor Blue is made with gor-gonzola from the Midwest. WindsorDale is a raw, British-style hard cheese.

Along with unique flavors in artisan lines, aged cheeses (especially longer-aged cheeses) are popular.

“People are appreciating the lon-ger-aged Cheddars in the cheese cate-

BelGioioso leads with sales increases

Natural Slices

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $649.4 0.8 222.2 0.1

Sargento $415.9 13.9 138.1 14.1

Kraft Big Slice $65.6 3.8 24.2 8.6

Tillamook $64.0 1.3 13.1 1.1

Kraft $47.2 3.6 15.6 11.4

BelGioioso $40.9 19.5 6.5 29.0

Sargento Natural Blends $25.6 1.2 8.9 2.5

Crystal Farms $25.3 1.2 8.0 1.4

Land O' Lakes $21.0 -2.3 5.2 -6.8

Alpine Lace $18.9 -12.5 3.8 -16.7

Total Category $1,616.4 5.6 506.6 5.8

Kraft Velveeta lone star with sales & units up

Processed/Imitation Cheese - Slices

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Kraft Singles $756.3 -2.9 223.6 -2.4

Private Label $564.9 -10.4 198.1 -10.8

Kraft Deli Deluxe $138.5 -7.7 26.4 -9.2

Borden $120.9 -6.6 47.2 -3.3

Kraft $105.9 9.0 37.0 5.5

Kraft Velveeta $101.4 29.8 38.5 79.2

Crystal Farms $26.5 -25.0 8.0 -30.7

Land O' Lakes $26.4 -6.3 4.4 -9.6

Sandwich Mate $17.2 -5.9 15.1 -8.2

Galaxy Nutritional Foods Veggie $11.8 -22.8 3.5 -23.1

Total Category $1,964.7 -4.8 637.9 (3.8)



� Organic Valley added new, raw grass-fedcheeses and goat cheesemaker CoachFarms adds its first-ever raw cheese.



gory. We age our Cheddars from one tofour years, sometimes longer,” said Meri Spicer, director of sales and marketing at Grafton Village Cheese, Brattleboro Vt. She also said customers are especially interested in sheep and mixed-milk spe-cialty cheeses from Grafton’s Cave Aged line. Its greatest opportunities are with small batch specialty cheeses.

“We are seeing an increased interest in smaller batch cheeses that we’re making and other smaller artisanal cheese mak-ers are coming out with,” said Spicer.

“Small batch, handmade cheeses are now popping up everywhere and made with a variety of milks (cow, sheep and goat),” said Melissa Gullotti, director of communications Windham Foundation and Grafton Village Cheese.

Health messages dominate

Though natural cheese and unique flavors are still big for cheese processors this year, new trends are popping up, like grass-fed, non-GMO and high-protein. Plus raw cheese continues to be hot.

“We see processors recognizing the power of protein to include dairy as a key method of delivery. The protein content has made its way to the front of many packages so the consumer can quickly identify a protein source they may not be familiar with,” Jim Dimataris, director of processor relations, California Milk Advisory Board.

Barbara Gannon, vice president of cor-porate communications and government relations at Sargento Cheese, Plymouth, Wis., said “Natural cheese is a good source of protein and calcium, is gluten-free and has no HFCS [high-fructose corn syrup]. Protein and calcium are called out on the front of our natural cheese snack packages.”

This year Sargento added Sharp Cheddar and Pepper Jack to its line of Ultra Thin Sliced Natural cheeses (which was introduced last year). The company also added two new flavors to its Natural Blends line, Sliced Sharp Cheddar-Jack and Sharp Cheddar-Jack Snack, part of the on-the-go cheese stick line.

Organic Valley, La Farge, Wis., put the emphasis on grass-fed and raw with its new Grassmilk Raw Cheddar, an arti-sanal raw milk cheese made from organic milk produced from cows that are 100% grass-fed. According to Tripp Hughes, director of category development at Organic Valley, the company has helped lead the non-GMO movement as well.

“Organic Valley has been a pioneer in the non-GMO and organic movement (organics prohibits GMO production) and we are glad to see it gaining momen-tum,” he said.

At this year’s International Dairy-Deli-Bake Association expo in Orlando, Fla., raw and specialty cheeses were on dis-play in abundance. Swiss Valley Farms,

the Iowa-based cooperative, was selling 5-pound wheels of its grass-fed baby Swiss. The Wisconsin dairy co-op Ellsworth Cooperative Creamery showed a new line of rBST/rBGH-free domestic cheeses.

Another company getting into the raw cheese department is Coach Farms, Pine Plains, N.Y. The company created Rawstruck, a soft ripened 100% raw goat’s milk that’s aged for 60 days. After 28 years of pasteurized cheese making, this was the company’s first raw milk goat cheese. According to Tara Kirch, director of mar-keting, the Rawstruck packaging was a new concept for the company with its big, bold, black label and chalk-like writing on it. (See photo on page 42.) It’s still wrapped in the company’s traditional white paper, but the label stands out from the rest of its product line, which was the goal.

Packaging and portions

Packaging is a critical element to market-ing a brand, according to Dimataris of the California Milk Advisory Board.

“The consumer has about three sec-onds to make a decision in a busy aisle of a grocery store. The more you can do to catch her attention the better,” he said. “As sustainability becomes more mainstream, consumers like to know their packages are recyclable. They also like attractive profes-sional-looking designs and relevant infor-mation on the front of the packages that

Palmetto Cheese sales/units are up

Processed - Cheese Spreads/Balls

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Laughing Cow $116.2 -16.5 33.5 -16.3

Kaukauna $49.1 -2.7 12.3 -6.6

Boursin $32.8 -19.0 5.7 -21.6

Alouette $23.8 -4.1 5.5 0.7

Private Label $20.9 -0.1 6.3 -2.2

Price's $18.2 5.1 5.4 4.7

Rondele $15.8 -10.4 3.1 -13.2

Palmetto Cheese $15.6 43.8 2.8 52.2

President Pub Cheese $14.3 2.8 2.9 2.1

Merkts $13.2 -4.3 3.2 -7.3

Total Category $468.6 -6.5 121.2 (7.7)



� Cheesemakers are seeing the benefit to newsnacking products, like Crystal Farms with itsnew on-the-go Nibblers cheese snacks.

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helps them make their decision. There isa need for more unique packaging in the dairy industry as the European, Asian and Oceana marketers are far ahead of us in this important area.”

Tillamook Ore.-based Tillamook County Creamery Association began a packaging design overhaul for its entire dairy products line this fall. The rede-sign streamlines the brand’s messaging with more product information, company insight and a distinguished color scheme. Additional features include detailed flavor descriptions, more farmer-owned iden-tification, recipe suggestions, call-outs to visit Tillamook online and a larger eye-catching company logo. The first prod-ucts to roll out in the new look were the 12-ounce stacked sliced cheeses, 8-ounce shingle sliced cheeses and a variety of sizes of stand-up shreds. The remaining prod-ucts will launch early next year.

Bel Brands’ Mulcahy said the company recently changed the packaging on its Mini Babybel Light to a light blue and white wrapper for “better visibility on-shelf and to help consumers distinguish it from other Mini Babybel varieties.”

According to Mulcahy, responsible packaging is important to Bel. “As we make changes to packaging, we look to reduce

the amount of packaging materials used for our products if feasible and favor the use of environmentally friendly materials.”

Sartori Cheese altered its MontAmoré cheese packaging, moving to a parchment-style look. “We believe the parchment look provides an enhanced look to the product and stronger artisan and hand-crafted cues,” said Sartori’s Vincent.

Processors are making smaller size options for portability, snacking or better value as well.

“We have processors adding small sizes of cheese – 6-ounce chunks – in order to achieve the $0.99 or $1.00 retails needed for the dollar stores. This is huge business and has caught on in a big way,” said Dimataris.

Kraft Foods, Northfield, Ill., added new flavors, portion sizes and combo packs to its line this year. Its Natural Cheese Big Slices are now available in Chipotle White Cheddar. Kraft’s Slim Cut cheese slices is a new reduced-fat, natural cheese slice option that contain 35 calories per slice (105 calo-ries in a 3 slice serving). For multipacks, Kraft added a Natural Cheese Slices Combo Pack that consists of two flavor varieties of cheese slices in one pack, stacked side by side. The cheese is available in two varieties: Pepper Jack and sharp Cheddar, and mild Cheddar and Colby Jack.

Chicago-based Dutch Farms introduced a new Deli Reserve cheese brand which fea-tures rigid packs that are re-closable and durable. The new line extension features aged, premium, all-natural cheese that’s available in the deli grab-and-go case, as well as behind the deli counter (sliced to order). The cheese is available in Gouda, New York extra-sharp, baby Swiss, provo-lone, Muenster and American.

Snack attack

Convenience and a desire for more snacking opportunities have some cheese processors answering the call, and many more should get on board with this trend.

Minnetonka, Minn.-based Crystal Farms, a subsidiary of Michael Foods Inc., introduced Nibblers, a new line of

100% real cheese snacks. The grab-and-go bite-sized cheese products are available in four flavors — including Smoky BBQ seasoned Cheddar cheese and Habanero seasoned Pepper Jack cheese. The cheese snacks come in 1.5-ounce stand-up, sin-gle-serve bags.

Cabot answered the snacking trend by adding two of its most popular flavors to its Cracker cut cheese slices — Seriously Sharp and Pepperjack flavors. The cheeses are pre-sliced making it easy to serve as snacks or at parties.

Tillamook County Creamery cites snacks and novelties as its biggest growth area.

“Snacking meal occasions are on the rise, and they require convenience as one of the primary attributes,” said Jay Allison, Tillamook vice president of sales and marketing. “As the cheese snack category matures, we believe consumers are increas-ingly looking for healthy snack options and higher-quality cheese as part of the snack experience. The challenge right now in the snacking category is to meet the consumer’s and retail customer’s expectations for value. The snack category is commodity-driven with multiple brands delivering cookie-cutter products, so we are trying to shake things up with aged Cheddars, bolder-fla-vored cheeses and fresh packaging.”

Snack-size portions of cheese were show-ing up at the IDDBA expo this year as well, further indicating the growing trend. BelGioioso Cheese, Green Bay, Wis., intro-duced fresh mozzarella cheese in 1-ounce snack-size packaging. Old Fashioned Cheese, Mayville, Wis., launched snack packs of Cheddar cheese paired with rai-sins, cranberries or almonds. President, a cheese brand of France’s Lactailis, revived its Wee Brie line of 40-calorie wedges.

As the emphasis on adding more pro-tein to our diets increases, cheese proces-sors have a great opportunity to innovate with snacking options that make getting protein easier. Yogurt companies have figured it out. Now it’s time for cheese to get on board. �

� Tillamook is redesigning its entire product line packaging with more product information, company insight and a distinguished color scheme.

• Raw• Grass-Fed• Non-GMO

• Natural• Artisan cheese • Unique/Bold flavors

• Snacking occasions • High-Protein• No hormones

Cheesemakers Are Talking About:

We look at things a little differently. Because we’re not just a flavor company, we’re your product development partner.

And when that happens, anything is possible.

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State of the

Industry

When you listen to the buzz in the cultured dairy aisle, it’s hard not to hear a lot about Greek yogurt, as its popu-

larity continues to drive growth for the category. But the story goes beyond just Greek yogurt; it’s about what this spotlight is doing for the category as a whole. Yogurt is hot and consumers’ interest doesn’t show any signs of waning soon. Whether the talk is about high-protein, exotic f lavors, healthy alternatives for dessert, convenient snacking or being used as an ingredient — yogurt is answering the call.

But the story in yogurt isn’t just about the explosion in fruits and flavors. Processors are innovating with packaging as well, using single cups, cups with side-cars, squeezable pouches and multipacks (often created on form-fill-seal equipment).

Total U.S. retail sales of yogurt are esti-mated to reach $7.4 billion in 2013, which is a 6.4% increase over 2011 and the fifth consecutive year of growth, according Chicago-based Mintel. Yogurt sales have increased by an impressive 40% since 2008 and future growth could remain strong as consumers continue to demand healthier snack alternatives and remain attracted to new varieties and brands of Greek yogurt products, Mintel’s report indicates. In addition, yogurt’s health benefits are a key purchase driver for the market, with yogurt ideally being positioned as a healthy alter-native to snacks, desserts and other break-fast choices.

No surprise, the major driver of yogurt sales for 2013 continues to be Greek yogurt, with Norwich, N.Y.-based Chobani still

The star of the cultured category continues to be Greek yogurt, but other international-style

yogurts are vying for attention. Plus, bold, exotic flavors, on-the-go products and a high-

protein emphasis are showing up throughout the cultured dairy case.

By Sarah Kennedy, associate editor

Yogurt rules dairy aisles

The cast: Yogurt, cream cheese, sour cream, cottage cheese, dips

Bottom-line dairy solutions

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leading the pack. The company experi-enced a sales increase of 21.3% to more than $1 billion, according to Mintel. In July, Chobani introduced 14 new flavors and formats to its Greek yogurt line-up. Among the new products are single-serve options, in flavors like coconut and orange vanilla. The company introduced Chobani Bite, a 3.5-ounce format, earlier this year, and recently added two more flavors — Mint with Dark Chocolate Chips and Honey Ginger. New flavors were also added to its Flip line, including Peachy Pistachio and Tropical Escape.

Also notable was the entrance of White Plains, N.Y.-based Dannon’s Oikos brand in a significant way into the market. Oikos sales increased 164.7% during the 52 weeks ended May 19, 2013, accord-ing to Mintel. New products this year for Dannon included Activia Greek and Light & Fit Greek, which contain 80 calo-ries per 5.3-ounce serving.

But many other brands are vying for attention in the Greek yogurt arena. New Greek yogurt lines hit the market this year from Springfield, Mo.-based Hiland Dairy, Carlinville, Ill.-based Prairie Farmsand Norman’s, Rutherford, N.J., with the first Cholov Yisroel Kosher Greek yogurt. General Mills’ Yoplait, Minneapolis, introduced a new blended Yoplait Greek yogurt to its line, available in six flavors, including coconut and tangerine.

“We’re seeing Greek [yogurt] pop up in all the category’s sub-segments — such as light yogurt, frozen yogurt and yogurt oriented toward particular health benefits like digestive health — as well as availability in new textures such as blended (i.e. with fruit/f lavor mixed in) versus the traditional fruit-on-the-bottom,” said Amy Elkes, brand program and consumer insights man-ager for Stonyfield, Londonderry, N.H.

“So, Greek

[yogurt] is making its way into every part of the yogurt aisle.”

Berry f lavors are still popular in yogurts, according to the Dairy Foods2013 Ingredients Study. Yogurt proces-sors said the top five f lavors they plan on using are: banana, mango, blueberry, raspberry and strawberry. But proces-sors are starting to look beyond the tra-ditional strawberry and blueberry and are dipping into interesting f lavor com-binations or exotic fruits.

The flavor game

With the competition among yogurt pro-cessors getting fierce, the flavor game has started. Consumers are looking for healthy indulgence and unique flavors that stand out, and many are answering the call.

“Indulgence is showing up in the form of fun toppings and more exotic and des-sert-like f lavors,” said Elkes. Stonyfield launched its new line of custard-style yogurt called Blends last spring. Flavors include peach mango, blackberry, lemon and strawberry banana.

Sun Valley Dairy, Sun Valley, Calif., producers of Voskos Greek Yogurt, recently expanded its distribution in the Northeast United States in hopes of gaining more traction. Its unique f lavor combinations, like honey crunch, honey vanilla bean, exotic fig and apricot mango, are helping the company to stand out. Another processor hoping to gain

attention with its bold f lavors is Dreaming Cow, Pavo, Ga. The New Zealand-style artisan yogurt company launched two new f lavors, Blueberry Cardamom and Dark Cherry Chai in its 6-ounce packages. This farmstead yogurt features a cream top.

Mountlake Terrace, Wash.-based The Greek Gods, a brand from The Hain Celestial Group Inc., added a new Honey Salted Caramel f lavor to its line. Yoplait also released two new single-serve f lavors in its Greek 100 line, lemon and tropical. Flavors that lean toward the tropical focus are showing up more often throughout the yogurt industry, not just in Greek.

Greek yogurt company Fage, Johnstown, N.Y., launched three new unique fla-vors in its Total 0% line, including Apple Cinnamon Raisins and Orange Cinnamon. The inspiration behind these new flavors comes from consumer demand and appealing to its “foodie” audience, according to Russell Evans, marketing director. The company also released a brand new line FruYo, which contains pieces of real fruit folded into the Total yogurt. It’s available in seven flavors, including pineapple, peach and raspberry. This is the first blended yogurt for the company, which started a nation-al TV campaign this fall featuring Chef Bobby Flay in the commercials.

Tillamook County Creamery, Tillamook, Ore., took the f lavor game

to a whole new level by introduc-ing its new dessert yogurt line, a first-of-its-kind product. It comes in three dessert-friendly

f lavors, Honey Cinnamon Crème Brûlée, Marionberry Cobbler and

• Functional• High-protein • No-HFCS

• On-the-go• Non-GMO• Greek-style

• Indulgent flavors • Grass-fed• Low-sugar

Producers of Cultured Products Are Talking About:

� Unique flavor combinations are all the rage with yogurt processors this year, like Dreaming Cow’s Honey Ginger, Chobani’s Flip in Peachy Pistachio or Fage’s Apple Cinnamon Raisins.



Peach Raspberry á la Mode. The dessertyogurt is available in 24-ounce family-sized containers.

Greek yogurt for men

Though Mintel reports that women are still more likely than men to eat spoon-able yogurts in both Greek and non-Greek forms, some companies are trying to change that narrative by emphasizing the high-protein benefits.

Powerful Yogurt, Miami Beach, Fla., claims it launched the first Greek yogurt in the United States designed specifically for men. The product is dif-ferentiated from existing Greek yogurts by its 20 to 25 grams of natural protein per serving. It’s sold in a “man-sized” 8-ounce cup that is 33% larger than most individual-serving Greek yogurts. The marketing and black-and-red pack-aging are designed to target active male consumers. With the emphasis on high protein, Powerful Yogurt is supposed to help men build muscle, burn fat and improve digestive health, accord-ing to the company. Another brand, Mammoth Yogurt, made by Fonterra Brands in New Zealand, is also mar-keted to men. The thick yogurt is made with grains or seeds and fruit, and is packed in a 325-gram (approximately 11.5-ounces) pot — described as a man-sized tub — and contains a spoon. It was named best fresh dairy product in the Sial D’Or awards at the 2012 Sial tradeshow in Paris.

Michael Neuwirth, senior director of public relations for Dannon, said the com-pany is now promoting Greek yogurt to men as well based on it being an excellent protein source. Recent ad campaigns talk about “The New Protein, Dannon Oikos nonfat yogurt” and show the yogurt atop a grill or in between two buns, directly try-ing to appeal to a male audience.

Move over Greek yogurt

Though Greek yogurt continues to drive the yogurt category and dominate the news, another trend has been showing up — other international-style yogurts are popping up and ready to compete. The United Nations of Yogurt includes Australian, Bulgarian, Icelandic and European styles.

Take Noosa Finest Yoghurt’s Aussie-style yogurt which features exotic f la-vors like Passion Fruit, Strawberry Rhubarb and Tart Cherry; or MüllerQuaker Dairy’s European-style Müller Corner and Müller FrütUp (with its unique f lavors and fruit mousse on the top). Then there’s Smari’s Icelandic yogurt, which has a whopping 17 to 20 grams of protein per 6-ounce serving.

“We’re definitely seeing a huge rise in international-style yogurts hitting the shelves,” said Koel Thomae, co-founder of Noosa Finest Yoghurt. “As more and more people have embraced yogurt as a part of their diets, they’re looking for variety and something new.” Noosa plans to introduce a plain version of its yogurt soon. The company also launched a vari-ety pack, which features 12 smaller-sized, 4-ounce servings in a mix of three fla-vors, including its new lemon flavor.

Another new yogurt on the market is Trimona’s organic Bulgarian yogurt. The yogurt is made with grass-fed milk and contains no added sugar, with approxi-mately 6 grams of sugar per cup. Trimona is currently only available in plain, but the Port Jefferson, N.Y.-based company is expected to release flavors in 6-ounce cups by the end of this year or early 2014.

Yogurt, not just for spooning

The rise in yogurt products on the market has given way to a whole new trend — on-the-go yogurts. As many processors look to increase the usage occasions beyond breakfast, that means convenient snack-ing options.



Daisy sales rise above the rest

Cottage Cheese

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

Change from

year ago

Private Label $411.2 -7.0 168.6 -4.0

Breakstones $96.9 -5.9 33.4 4.5

Daisy $63.4 21.8 23.1 25.4

Knudsen $50.4 -2.4 14.8 8.1

Kraft $50.0 5.8 21.9 4.5

Total Category $1,086.2 -3.1 427.0 -0.02

� A new Maple flavor is the latest release from Powerful Yogurt joining the other six flavors in the line, including Apple Cinnamon.

Daisy is star in sour cream

Sour Cream

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

Change from

year ago

Daisy $442.9 3.1 207.1 3.9

Private Label $307.1 -6.7 205.5 -2.4

Breakstones $88.5 -1.5 46.5 8.1

Knudsen $37.4 -0.4 15.4 7.2

Kraft $23.6 -4.1 16.8 -11.3

Total Category $1,094.7 -1.7 591.0 0.3

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New York-based Happy Family intro-duced its Happy Squeeze Greek yogurt, a line of on-the-go pouches designed for easy snacking for people of all ages. The company also released new Greek yogurt pouches for babies and toddlers earlier in the year. The Greek Gods brand went portable by adding a drinkable low-fat Greek kefir to its line. Lifeway Foods Inc., Morton Grove, Ill., known for its drinkable kefirs, added a new honey fig f lavor to its line. The company also reformulated its Helios organic drink-able kefir, taking the protein from 12 grams to 16 grams and adding a new f la-vor, pear and honey.

According to Mintel, yogurt drink sales have experienced a recent increase with products aimed at parents and chil-dren being a major driver of growth for the segment. Focusing on the trend of new baby, toddler and children yogurt products presents a great opportunity for yogurt processors.

“The biggest opportunities are development in baby and kids yogurt and clearly defining the importance of organics versus conventional in yogurt,” said Matt Newsom, vice presi-dent of sales for Stonyfield. “Retail cus-tomers are very focused on capturing the new mom shopper segment due to the spending and loyalty this shopper brings to the business.”

Following the grab-and-go trend and marketing to children/moms, Stonyfield launched YoKids Smoothies, made with real organic fruit and vegeta-ble purees in two f lavors. Lifeway Foods

also introduced ProBugs Bites, freeze-dried kefir melts for babies. The shelf-stable bites (sold in pouches) dissolve quickly in a baby’s mouth for safe and easy self-feeding. Organic baby food maker Sprout Baby, Atlanta, created three Superfruit & Greek yogurt-based items for toddlers. The company also added four Fruity Yogurt Bite snacks for toddlers. The snack bites consist of freeze-dried organic yogurt and fruit pieces in one packet. Sprout also added the new line Smash Smoothies, aimed at elementary school-aged children. The smooth-ies feature combina-tions of fruits, veg-gies, coconut milk, quinoa and Greek yogurt, and are also sold in easy-to-drink pouches.

Yoplait recently reformulated its kid-friendly Go-Gurt brand. The yogurt has new vibrant packaging featuring a new health message: no high-fructose corn syrup. The yogurt’s new formula con-tains 1 gram less of sugar, and 10 fewer calories (60 calories per serving). It is made with natural f lavors and colors.

Müller Quaker Dairy also sweetens with-out high fructose corn syrup and uses no artificial flavors. It will use only colors from natural sources when it starts producing the entire yogurt in Batavia, N.Y., said Director

of Communications, Scott Gilmore, Chicago. Some

yogurt is being shipped from Europe. Coach Farms, Pine

Plains, N.Y., added a

Wholly Guacamole shines among dips

Refrigerated Dips

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

Change from

year ago

Private Label $128.0 3.8 45.4 4.4

Marzetti $78.0 -4.5 22.3 -4.6

Dean's $63.3 -2.9 35.0 -2.9

Heluva Good $59.5 0.4 29.5 0.4

Wholly Guacamole $53.1 5.3 13.2 10.3

Total Category $682.9 2.4 251.0 1.8



� On-the-go products in squeezable pouches and bottles, like these from Sprout and Happy Family are on the rise as snacking and convenience gets trendy.

Cabot sales and units on the rise

Cream Cheese - Brick

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

Change from

year ago

Kraft Philadelphia $423.1 3.0 204.3 1.9

Private Label $235.1 -9.7 150.9 -8.8

Crystal Farms $9.7 -3.9 5.8 -4.4

Dutch Farms $1.6 -4.2 1.1 -5.7

Cabot Vermont $1.0 54.8 0.697 46.1

Total Category $676.2 -1.8 366.3 (2.9)

� Müller Quaker yogurt is partof a new growing trend ofinternational-style yogurts.� Dannon (pictured), HeluvaGood!, and La Terra Fina alllaunched dips containing Greekyogurt this year.

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new blackberry flavor this month to itsYo-Goat drinkable goat’s milk yogurt line. The cultured Grade A goat’s milk is sold in 8-ounce bottles and available in four other flavors including strawberry and mango peach.

Dipping into flavor/talking protein

The flavor game goes beyond the yogurt aisle as processors of dips and sour creams are grabbing attention with indulgent and bold flavor combinations and using Greek yogurt as ingredient.

Heluva Good!, a brand of HP Hood LLC, Lynnfield, Mass., launched four new Greek-style yogurt dips, including Herb Ranch, Southwestern Chipotle and Fire Roasted Vegetables (see Eat. Drink. Dairy. on page 21). La Terra Fina, Union City, Calif., created a line of refrigerated dairy dips made with Greek yogurt. Its unique flavors include Yellow Pepper and Lentil, Caramelized Onion and Red Lentil Curry. Phoenix-based Shamrock Farms intro-duced a new line of farm-fresh flavored sour creams with three interesting flavors, including Zesty Jalapeno. Dannon added Oikos Greek Yogurt Dips to its line as an alternative to traditional dairy dips, with less fat and 25 calories per serving. Flavors include French Onion, Roasted Red Pepper and Cucumber Dill.

Kraft Foods’ Philadelphia Cream Cheese focused on bold with its latest cream cheese flavors — Chipotle and Brown Sugar and Cinnamon. Earlier in the year the company released a Spicy Jalapeño flavor.

Smith Dairy Products Co., Orrville, Ohio, added a new all-natural French onion dip to its product line. Anderson Erickson, Des Moines, Iowa, added a Bacon French Onion sour cream flavor to its line. Attempting to shake up its cottage cheese lines, Breakstone’s and Knudsen(brands of Kraft Foods) added Mango and Raspberry Cottage Double flavors earlier this year. This fall the company added Greek-style Sour Cream & Nonfat Yogurt to the Breakstone’s/Knudsen line. The sour cream features 50% less fat and two times the protein (2 grams per serving).

Some makers of cream cheese and sour cream are getting on board with the high-protein message, but many more cultured processors (especially cottage cheese) need to get with the program. A half-cup of cottage cheese typically contains 11 grams of protein.

“We think cottage cheese is ready for a revival; especially since the product has protein content as high, if not higher, than many Greek Yogurts,” said Pete Kondrup, general manager, Westby Cooperative Creamery, Westby, Wis. “The category needs some new dressing; pun intended.”

Martin T. Weaver, director of sales and marketing at Umpqua Dairy Products, Roseburg, Ore., said, “I think that with the introduction of higher-protein diets and additional protein being added to a number of products, we will see a shift in the consumers’ interest level for cottage cheese. It is a healthy and natural high-protein item.”

Umpqua’s Small Curd Cottage Cheese was awarded first place as the “Best of the Best” at the World Dairy Expo Championship Dairy Product Contest last August. The company also released an all-natural cottage cheese that’s “slowly gaining traction,” said Weaver.

Franklin Foods, Enosburg Falls, Vt., launched the industry’s first Greek yogurt spreadable cheese, emphasizing its high-protein content. Kraft’s Philadelphia Cream Cheese also launched a new 2X Protein cream cheese this fall. The cream cheese has 4 grams of protein per serving, and comes in regular and honey flavors.

Dairy processors are counting on the continuing popularity of yogurt. Commonwealth Dairy (owners of Green Mountain Creamery, Brattleboro, Vt.,) in partnership with Ehrmann in October opened a Greek yogurt plant in Casa Grande, Ariz. Earlier this year, Franklin Foods built a Greek cream cheese plant in the same city. This year Müller Quaker Dairy opened a 350,000-square-foot plant on 82 acres in Batavia, N.Y. It was designed for expansion capability. Byrne Dairy, Syracuse, N.Y., is building a 73,000-square-foot plant in Cortlandville, N.Y., where it will process conventional and Greek yogurt for private label and co-pack customers. (Search dairyplantsusa.com for a list of yogurt manufacturers in the United States.)

As yogurt dominates the dairy dis-cussion, more cultured dairy processors would be smart to follow suit with the high protein emphasis, unique flavors and more snacking opportunities. �

The emphasis on more protein consumption and healthy eating has some processorshighlighting the use of yogurt (especially Greek yogurt) as an ingredient in cooking.

Companies like Fage, Chobani and Dannon all feature sections on their websites withrecipes showing how to incorporate Greek yogurt into cooking.

“Another great opportunity within the category stems from providing information on thebenefits of cooking with Greek yogurt,” said Dannon’s Michael Neuwirth. “Most peoplehave just started experimenting with cooking with Greek yogurt and are discovering itsrole as more than a snack or a breakfast item.”

Cristina Dennstedt, communications manager at Chobani said, “One of the biggestgrowth areas is the adoption of Greek Yogurt as an ingredient. [It] can be used to addmoisture when baking or create a creamy texture in soup recipes.”

Fage, in addition to its TV campaign featuring Chef Bobby Flay, updated their websitewith a whole interactive recipe section. The site features Flay in recipe videos demon-strating how to cook with the yogurt. The makers of Trimona Bulgarian yogurt are specifi-cally marketing its product to be used in cooking as an ingredient. The owner even doescooking demonstrations at Whole Foods stores.

Yogurt outside the box

� Green Mountain Creamery, owned byCommonwealth Dairy, garnered attentionlast spring for its Maple-flavored Greekyogurt, which won “Most Innovative” atan International Dairy Foods Associationcontest. The company is adding four newblended flavors to its line this fall.

c



Sponsored by

State of the

Industry

What are ice cream processorsthinking? They are opening plants as production plum-mets. Annual ice cream pro-

duction has been dropping steadily, from 891 million gallons in 2007 to 785.3 million gallons in 2012. During that time, the number of ice cream plants rose to 406 (in 2011) from 357 in 2007, according to the U.S. Department of Agriculture’s statistical service.

Retail sales of ice cream in the last year increased a scant 0.3% to $5.5 billion, despite a 4-cent-a-unit decrease. Sales were helped by an increase in unit sales of 1.4% in the 52 weeks ended Aug. 11, 2013, according to Information Resources Inc., the Chicago-based market researcher.

The best-selling ice cream — private label — fared poorly. Sales dropped 4.7% to $1.1 billion with units down 3.9% to 352.7 million. On the other hand, certain proces-sors did quite well in the last year. From a vendor level, Nestle Dreyers Ice Cream Co. boosted sales 4% to $1.08 billion and unit sales increased 6.75% to 276.9 million.

Blue Bell Creameries increased sales 5.4% to $558.5 million. Blue Bell was the only vendor in IRI’s top five that was able to get a price increase (5 cents) in the last year.

A new product every month

Ice cream processors continue to innovate. According to the Dairy Foods 2013 Ingre-dients Study, ice cream processors say they plan to develop an average of 13.4 new products in the next 12 months. The top five flavors they plan on using are strawberry (82%), mango (64%), raspberry (59%), banana (57%) and cherry (56%). The study

Processors combine tropical fruit flavors in ice cream and fruit bars. They look to the bakery

aisle for inspiration and develop “dessert within a dessert” creations like red velvet cake and

S’mores ice cream.


Anything but plain vanilla

The cast: Ice cream, gelato, frozen yogurt,

sherbets, sorbets, novelties

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did not ask about chocolate or vanilla fla-vors, but 66% of respondents said they plan to increase purchases of cocoa, choc-olate and other ingredients.

Which is the more popular flavor: choc-olate or vanilla? That depends. According to a 2013 survey of International Ice Cream Association member companies, vanilla is the most popular ice cream fla-vor. A Harris Poll this summer, on the other hand, found that chocolate holds the edge over vanilla (27% to 23%).

The top three f lavors in the ice cream association survey are vanilla, chocolate and butter pecan, with coffee, tri-f la-vored Neapolitan and Rocky Road (with nut inclusions) tied for fourth place, according to the companies participat-ing in the survey.

Harris found that after chocolate and vanilla, cookie dough/cookies and cream are third at 22%. Women’s preferences are chocolate (29%), mint chocolate chip (23%) and cookie dough/cookies and cream (22%). Men prefer vanilla (27%), chocolate (26%) and cookie dough/cook-

ies and cream (21%). Harris Interactive surveyed 2,242 adults online in July.

Exotic or ethnic flavors are find-ing their way into the ice cream aisle.

Whatever the reason, look for more tropi-cal fruit flavors, such as mango, coconut, pineapple and lemon. Also, look for these flavors in combination with others.

Dreyer’s/Edy’s, Häagen-Dazs show largest gains

Ice cream

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $1,131.0 (4.7) 352.7 (3.9)

Blue Bell $588.5 5.4 154.5 4.1

Breyers $477.6 (8.9) 134.9 (4.3)

Ben & Jerry’s $470.5 3.4 113.9 4.1

Häagen-Dazs $399.5 14.2 95.9 17.4

Dreyer’s/Edy’s Slow-churned $293.0 (2.9) 76.3 0.8

Wells Blue Bunny $272.5 (8.6) 64.2 (9.2)

Dreyer’s/Edy’s Grand $254.0 47.0 67.3 50.5

Turkey Hill $189.6 0.5 64.0 2.9

Breyers Blasts $152.7 11.5 44.1 15.6

Total catgory $5,533.7 0.3 1,513.3 1.4


Mikawaya Mochi Ice Cream, LosAngeles, has a new line called Exottics that it said was inspired by authentic Asian cuisine and fruits. Flavors include Black Sesame, Green Tea Matcha, Lychee, Taro and Yuzu Sorbet. The line is packaged in pints, bars, 3.6-ounce cups and ice cream sandwiches, as well as 5-quart pails and 3-gallon pails for foodservice customers.

In addition to exotic flavors, ice cream makers followed the ethnic trend into products. Most notable was Nestle’s premi-um ice cream brand Häagen-Dazs launch of gelato in February. It could be argued that the Italian treat is mainstream now. Still, no other national ice cream brand has a gelato product. Häagen-Dazs offers all seven flavors in 14-ounce cartons, with Sea Salt Caramel and Vanilla Bean also sold in 3.6-ounce cups.

Talenti Gelato & Sorbetto, Minneapolis, drew upon the popular Hispanic flavor dulce de leche for its Argentine caramel. Other new flavors introduced in March were Alphonso mango, German Chocolate Cake and butter pecan.

Cake and (and in) ice cream

Rhino Foods, Burlington, Vt., is a baker of cookie dough inclusions and cake pieces, and a processor of ice cream

sandwiches. Corporate Research Chef Dale Conoscenti said the company is seeing “lots of energy around ginger, honey, and cinnamon. Latin influences

Everyone loves fro-yo

Frozen yogurt/tofu

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $61.9 7.7 20.0 14.2

Healthy Choice $35.7 2,660.8 11.2 2,261.9

Ben & Jerry’s $33.8 101.7 9.8 99.5

Kemps $28.6 18.7 7.6 18.9

Ben & Jerry’s Froyo $26.9 (2.5) 6.8 (0.8)

Wells Blue Bunny $20.2 17.7 5.1 19.3

Dreyer’s/Edy’s Slowchurned $17.5 (29.5) 4.5 (26.3)

So Delicious $16.1 53.3 3.0 51.9

Wells Dairy Yoplait $14.1 No data 4.5 No data

Häagen-Dazs $10.7 (21.4) 2.7 (19.4)

Total category $355.0 26.1 98.1 32.5




continue to be strong and Asian influ-ences on ingredients and flavor develop-ments are strengthening.”

“Customers are asking for unique and new ingredients while maintaining a connection with consumer preferences,” Conoscenti said. “We see a real will-ingness to stretch beyond usual comfort zones in the evaluation stages of new fla-vors and concepts. Customers use these unique offerings as a way to keep their brands fresh and relevant across multiple product and consumer segments.”

Ice cream processors also borrow ideas and flavors from other dessert items, espe-cially cakes. Birthday cake and red velvet cake flavors and inclusions have been popular. Iowa-based Wells Enterprises even commissioned a licensed line of ice cream with celebrity chef Duff Goldman (of the cable show “Ace of Cakes”).

Following the success of Anniversary Cake, Birthday Cake, Groom’s Cake and Red Velvet Cake, Brenham, Texas-based Blue Bell developed Italian Cream Cake. This limited-time flavor mixed vanilla ice cream with pieces of Italian cream cake, shredded coconut, roasted pecans and a cream cheese icing swirl.

Pumpkin pie and cheesecake inspired Rita’s Italian Ice, Trevose, Pa., to develop a seasonal Pumpkin Cheesecake Cream Ice that combines cheesecake and pump-kin pie flavors.

Conoscenti said “creating ‘desserts inside desserts’ concepts has been well-received” and gives a consumer a more “dynamic experience. Our S’mores ice cream flavor has been one of the most well received examples of this type of concept.”

Co-branding and licensing

Dairy Foods found that branded ice cream companies are teaming up with other food brands on new products. Each brand gains from the additional exposure. For exam-ple, Mars Ice Cream, Burr Ridge, Ill., will launch a 2.6-ounce Starburst sorbet stick bar in February 2014, said Mars Ice Cream General Manager Craig Hall. Starbust is a candy brand owned by Wrigley, which in turn is owned by Mars.

Working with well-known brands requires some additional effort in pack-aging graphics so that consumers know what they are buying. In February, Mars will introduce new graphics and pack-

age designs for Snickers, Milky Way and Twix brands of ice cream. Hall said research found that some consumers thought the single ice cream bars were frozen chocolate bars. “The new single design more clearly communicates ice cream,” Hall said.

Roba Dolce, Pomona, N.Y., co-brand-ed pints of gelato and sorbet with Ocean Spray using the fruit cooperative’s Cherry Craisins Dried Cranberries. (See page 21.) The inclusions are paired with dark choc-olate in a gelato. The sorbet line includes a cranberry raspberry lime flavor.

Unilever’s Popsicle turned to Sanrio’s ubiquitous Hello Kitty for a new brand-ed line of ice pops shaped like stars, triangles and moons. Flavors include cherry, watermelon, berry and grape.

Novelties are new

Ice cream processors are rounding out their frozen dessert offerings by enter-ing the fruit bar market or by expanding their offerings. For example, Pierre’s Ice Cream, Cleveland, launched a new line of fruit bars under its popular ¡Hola Fruta! brand this summer. Assistant Marketing

Dreyer’s, Talenti are sales leaders

Sherbet/sorbet/ices

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $90.8 (7.7) 36.3 (6.0)

Häagen-Dazs $31.0 (5.5) 7.9 (4.6)

Blue Bell $14.6 4.0 5.4 1.2

Kemps $7.1 (5.0) 2.3 (7.0)

Ciao Bella $6.5 (21.8) 1.6 (24.7)

Dreyer’s/Edy’s $6.4 (34.9) 1.6 (31.5)

Prairie Farms $5.5 5.7 1.7 1.1

Wholefruit $5.2 (13.3) 1.9 (8.5)

Talenti $5.0 43.6 1.1 44.4

Dreyers $3.3 1,202.4 0.8 1,573.9

Total category $214.3 (4.6) 75.0 (3.5)

Turkey Hill comes on strong

Frozen ice cream/ice milk desserts

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Carvel $96.2 (1.7) 5.1 0.2

Jon Donaire $49.7 10.2 3.0 15.1

Celebration Foods Oreo $16.4 0.2 1.0 (8.3)

Friendlys $14.4 (7.4) 1.5 (1.6)

Private Label $13.3 (26.6) 0.8 (16.2)

Turkey Hill $4.7 210.2 0.2 169.6

Carvel Snickers $3.6 (6.3) 0.2 (8.7)

Friendlys Reeses $3.5 18.0 0.1 18.5

Uncle Harrys $2.3 0.5 0.1 10.9

Celebrate $2.0 (25.6) 0.2 (26.9)

Total category $218.6 (6.2) 14.3 (31.9)


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and Communications Manager MatthewThornicroft said the “snack-sized” dairy-free fruit bars are available in pomegran-ate raspberry, raspberry blueberry and strawberry flavors.

Blue Bell extended its fruit bar line with mixed berries (strawberries, black-berries and raspberries) and Dipped Coconut, sold in six packs. Each all-natural bar is made with real fruit.

The fruit bars “appeal to consumers of all ages, but especially those health conscious consumers who are focused on healthier eating,” said Blue Bell Director of Marketing Carl Breed.

While the fruit bars are nonfat and low in calories, Blue Bell went the other direction with its Dipped Coconut Fruit Bars, a 190-calorie treat with 11 grams of total fat. It took its existing Coconut Fruit Bar and loaded it with f lakes of fresh coconut and dipped in a thick layer of dark chocolate.

Edy’s Outshine is the new name for the fruit bar products from Edy’s. The Nestle Dreyer’s Ice Cream Co. brand in April rolled out 60-calorie Coconut Water bars in two f lavors: banana and pineapple. It also sold for a limited time its raspberry and peach f lavors (avail-able February through August) and grapefruit and blood orange f lavors (September through December).

Europe-based international food giant Unilever brought its Fruttare fruit bars to the United States in June. The dairy-based varieties come in strawber-ry, coconut, banana and peach f lavors. The juice-based bars are sold in straw-berry, orange, mango and lime f lavors.

Following the introduction last year of the premium ice cream Magnum bar, Unilever rolled out Magnum Gold bars. The vanilla bean ice cream is swirled with sea salt caramel and dipped in a golden Belgium chocolate coating.

Friendly’s Ice Cream Co., the proces-sor and restaurant operator, entered the novelty market with sticks, cones and sandwiches sold in four- and six-packs. The 10 f lavors from the Wilbraham, Mass.-based ice cream company include Strawberry Cake Krunch and Chocolate Cake Krunch bars, black raspberry bars and fudge and caramel cones.

Yolo Pops, Las Vegas, a maker of alco-hol and nonalcohol ice pops, launched a

line of all-natural, nonalcoholic flavors in July. Sold in 100-milliliter (about 3.4 ounc-es) single-serve tubes, the flavors included blackberry, strawberry and cherry.

Beyond the dip stand

As any baby boomer would attest, the original food truck was the Good Humor truck that rolled through urban and sub-urban streets in the summer time. That idea has been updated. What’s Da Scoop? is a food truck concept from Two Trucks LLC, Dallas/Fort Worth, that served premium ice cream in the Texas metro-plex area this summer. Flavors included Fat Elvis (ice cream with organic banana puree with chocolate chips and peanut butter chunks) and Blue Suede Shoes sundae (Fat Elvis ice cream with candied bacon bits and whipped cream).

Unilever’s Good Humor brand drove trucks throughout the Boston area this summer on what it called a “Share the Love” tour. The ice cream novelty brand gave away thousands of sand-wiches, bars and cones. In New York, Magnum built a pop-up shop in mid-town Manhattan’s Bryant Park where

customers could design their own f la-vor combinations with toppings and chocolate coatings.

Blue Bell reaches its customers with a QR (quick response) code added to its ice cream packages. By scanning the code with a smart phone, consum-ers can join the Blue Bell Country Club to receive monthly coupons and other benefits. “We’ve seen sales of our fro-zen novelties are trending higher this year. We attribute some of this growth to an updated packaging design,” Breed said.

Finally there is an app from Häagen-Dazs that distracts consumers until ice cream has reached its peak temperature for dipping and eating. The Concerto Timer app launches a two-minute video of a Bach violin and cello work when an iPhone is pointed at a symbol on a car-ton. For each download of the app, the company donates $5 to research colony collapse disorder in honey bees.

Who’s to say if any of these gimmicks will boost the ice cream category. As long as brand sales increase, ice cream proces-sors will be humming a happy tune. �

• Tropical fruit flavors• Cake-inspired flavors• Fruit-flavored novelties

• Licensing well-known candy brands• Reaching consumers through technology• Marketing with food trucks

Ice cream processors are talking about:

Nestle Drumstick pushes units up 4.3%

Frozen novelties

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $463.2 (1.6) 167.0 (4.4)

Nestle Drumstick $305.8 5.9 74.9 4.3

The Skinny Cow $200.4 (15.5) 48.9 (19.6)

Wells Dairy Weight Watchers $191.1 (9.6) 43.0 (10.1)

Klondike $173.6 (4.5) 57.1 (3.9)

Häagen-Dazs $154.5 0.9 65.9 (7.3)

Dreyer’s/Edy’s $152.2 (33.4) 40.8 (31.6)

Snickers $145.8 (4.1) 56.2 (6.9)

Blue Bell $138.0 8.4 63.9 0.8

Popsicle $132.2 3.5 47.4 (2.7)

Total category $4,212.0 (2.3) 1,488.9 (4.1)


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State of the

Industry

The storyline in butter this year isflavor. Like their counterparts in milk, cheese, yogurt and ice cream, buttermakers are adding ingredi-

ents to make their products sweeter or more savory. Take for example, a sea salt and cracked pepper spreadable butter under the Challenge brand introduced this summer from California Dairies Inc.

It is packaged in a 7-ounce plastic contain-er. Challenge this year also rolled out a light spreadable butter with olive and canola oils.

In a statement this summer, Challenge Dairy Products’ Senior Vice President of Retail and Food Service Tim Anderson said, “The spreadable category is one that is growing rapidly alongside home chefs’ desires for more flavorful, convenient and healthier options.”

Land O’ Lakes, Arden Hills, Minn., con-tinues to develop its popular Sauté Express Sauté Starter product used for sautéing chick-en, fish, pork and vegetables. This autumn, the company launched teriyaki, which has ginger and sesame flavors.

“Consumers have been telling us they want more Asian flavors,” said Becky Wahlund, director of the Test Kitchen at Land O’Lakes.

The company also created a new garlic and herb flavor of spreadable butter blended with canola oil and packaged it in a larger (24 ounce) container.

Land O’Lakes has found that consumers are moving away from margarine spreads to the butter category because they seek “more wholesome alternatives,” according to a com-pany spokeswoman.

Also spurring growth in butter is the cat-egory’s focus on convenience, such as spread-able butters and half-stick packaging. In the

Processors create line extensions with new flavors and more convenient packaging.


A taste for butter

The cast: Butter, butter blends

c

Dairy Foods 2013 Ingredient Study, butter makers reported theyplan to introduce an average of 21 new products within the next 12 months. That’s greater than any other dairy products category.

Epicurean Butter, Federal Heights, Colo., is a specialty food man-ufacturer selling various flavors of compound butters. The company buys butter from the West Coast and seasons and packages it in 3.5-ounce cups in Colorado. Its newest flavor, introduced at this year’s International Dairy Deli Bake show, is maple syrup.

Grocery giant Kroger entered the flavored butter game in late October with three savory and three sweet Private Selection Finishing Butters.

Like milk, ice cream and yogurt, butter is a good carrier of flavor.

Expect to see more innovations in the category as smaller pro-cessors follow the leaders. �

• Butter sales: $2,017,483,000*. Up 1.4% from previous period• Margarine sales: $1,854,747,000*. Down 5.6%*Retail sales for the 52 weeks ended Aug. 11, 2013

Source: Information Resources Inc., Chicago

Fewer plants, but more butter

Year Plants Production (pounds)2012 82 1,859,554,0002011 85 1,809,751,0002010 76 1,563,972,0002009 80 1,572,488,0002008 81 1,644,076,000

Source: National Agricultural Statistics Service, USDA

The butter dish

Kerrygold grows 43% in a year

Butter/butter blends

Dollar Sales

(millions)

% Change

from year ago

Unit Sales

(millions)

% Change

from year ago

Private Label $1,086.8 (1.1) 378.8 (0.0)

Land O Lakes $500.7 2.9 143.1 4.0

Challenge Butter $81.2 1.0 25.8 1.8

Breakstone’s $34.2 (1.6) 13.4 (1.6)

Tillamook $31.7 7.7 9.8 8.9

Crystal Farms $27.5 23.4 9.3 29.1

Cabot $22.8 6.4 7.0 8.6

Kerrygold $20.6 42.9 5.5 43.6

Keller’s $19.0 (3.9) 6.7 (2.8)

Hotel Bar $17.6 (5.2) 6.3 (5.8)

Total category $2,017.4 1.4 660.1 2.3

� California Dairies Inc.’sChallenge brand came out withtwo new products this summer.

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Sponsored by

State of the

Industry

Better-for-you products are on theshopping lists of many consum-ers these days and that includes the nondairy beverages they put

in their baskets or grab on the go. “In general, today’s consumers want

healthier refreshment,” said Gary Hemphill, managing director of research at Beverage Marketing Corp., New York. “Each consumer may define healthy slight-ly differently, but overall products that have healthy attributes are performing better than those that don’t.”

He anticipates continued growth from bot-tled water — both still and sparkling — and sees ready-to-drink teas, almond milk, energy drinks and sports drinks as also doing well.

“In general, niche categories are perform-ing better than larger traditional, mass mar-ket categories,” Hemphill explained, adding that consumers are also receptive to bever-ages that provide specific functional benefits.

Though orange juice reigns in the refrig-erated juice and drinks category, sales are stagnant. Information Resources Inc., Chicago, said sales were $3.4 billion in the 52 weeks ended Aug. 11, 2013. Sales rose a scant 0.6%. Processors would be wise to consider juice and drink smoothies (sales up 30.7%), vegetable juice/cocktail (22%) and the small but growing cranberry cock-tail/drink (102%). (See table on page 70.)

Here’s how processors of nondairy bever-ages are meeting those consumer demands.

Frozen fruit/vegetable juice

Old Orchard Brands’ Fruit & Veggie frozen concentrate hit stores this September — the Sparta, Mich.-based company said it’s a

No coffee brakeThere is no stopping the caffeinated beverage. Sales of refrigerated, ready-to-drink coffee soar

in the last year. Refrigerated juices and juice blends do well, too.

By April Miller, contributing editor

The cast: Tea, coffee, juice, lemonade,

fruit punch, energy drinks

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first-ever for the frozen aisle, moving fruitand vegetable juice blends beyond shelf-stable bottles and boxes. Available in blue-berry pomegranate, peach mango, and strawberry banana, each 8-ounce serving contains one serving of fruit as well as one serving of vegetables.

“Fruit & Veggie combines carrots, sweet potatoes and beets with fruits like peaches, mangos and strawberries to cre-ate a line that fits the better-for-you pro-file with real nutritional value but is also very drinkable and kid-friendly,” said Kevin Miller, vice president of marketing.

An expansion of its Old Orchard for Kids line will debut in November with three new flavors: berry, fruit punch and grape. All have 50% less sugar than 100% apple juice and 100% daily value of Vitamin C, both benefits highlighted on the 64-ounce shelf-stable bottles.

“There is an established market for this kind of juice for toddlers,” Miller adds, “but these new flavors are geared more towards that transition into childhood when flavor preferences enter the equation.”

The brand uses its online fan club and social media to connect with consumers. Visitors can play games and earn points they redeem for coupons and other prizes, view recipes and see diet and fitness tips. A regis-

tered dietician, certified wellness coach and personal trainer interact with users.

“It’s not just about promoting prod-ucts,” Miller explained, “but practicing what we preach about promoting good, healthy beverages and choices that con-tribute positively to overall health.”

At this year’s Natural Products Expo West, GoodBelly (manufactured by NextFoods, Boulder, Colo.) launched a new flavor, Carrot Ginger (its first pro-biotic veggie beverage) as well as new gluten-free family-sized quarts in three flavors: Tropical Orange, Pink Grapefruit and Fermented Probiotic Coconut Water. All are made with gluten-free oat flour.

New packaging was introduced this summer for unified brand design as well as a better on-shelf block effect. Quarts include a black background and specific ingredients illustrated for each flavor alongside a glass of juice. The word “pro-biotics” is featured in large text on the front to highlight that feature.

Orange juice: we drink less of it, but we drink it the most

Refrigerated juices/drinks Dollar sales (millions) % Change from year ago Unit sales % Change from year ago Average price per unit

Orange juice $3,493.5 0.6 1,084,214,000 0.6 $3.22

Fruit drink $1,077.3 (1.3) 560,275,300 1.6 $1.92

Juice and drink smoothies $741.9 30.7 214,279,800 27.3 $3.46

Lemonade $522.2 2.3 251,105,000 1.7 $2.08

Blended fruit juice $342.7 5.7 111,407,800 5.3 $3.08

Grapefruit juice $86.4 (0.9) 25,809,550 (3.3) $3.35

All other fruit juice $77.8 6.8 18,752,420 32.4 $4.15

Cider $71.5 (2.2) 15,785,450 (23.9) $4.53

Vegetable juice/cocktail $67.7 22.0 16,271,370 22.4 $4.16

Apple juice $61.9 (0.3) 24,206,490 (1.8) $2.56

Cranberry cocktail/drink $50.5 102.7 19,935,560 89.1 $2.54

Fruit nectar $14.8 (11.3) 5,419,374 (16.1) $2.74

Pineapple juice $11.3 (7.6) 3,740,990 (12.1) $3.04

Grape juice $10.4 (10.7) 5,120,191 (5.7) $2.04

Juice/drink concentrate/syrup $7.1 (11.8) 366,687 (20.1) $19.63

Lemon/lime juice $4.9 (6.3) 2,666,888 (7.7) $1.85

Cranberry juice/cranberry juice blend $2.4 (40.4) 707,967 (43.4) $3.53

Cocktail mixes $0.2 (16.1) 79,235 (13.2) $3.57

Grapefruit cocktail/drink $0.0 (17.2) 6,705 (21.8) $2.13

Total category $6,645 3.8 2,360,151,000 3.5 $2.82

� Old Orchard Brands developed a frozen concentrate of its fruit and vegetable juice blends. The flavors are blueberry pomegranate, peach mango, and strawberry banana. An 8-ounce serving contains one serving of fruit as well as one serving of vegetables.




CEO Alan Murray said the companyhas seen increased demand from con-sumers for probiotics, but that there is still “a lot of confusion about different strains and their benefits.”

GoodBelly uses its website, newsletters and free webinars to help educate con-sumers.

Honest Tea, Bethesda, Md., reformu-lated its entire children’s line this year to eliminate organic cane sugar, replacing it with additional juice. The 6.75-ounce pouches remain at 40 calories and sugar per serving dropped from 10 grams to 9 grams. Available flavors include Tropical Tango Punch, Appley Ever After, Berry Berry Good Lemonade, Goodness Grapeness and Super Fruit Punch. The latter three are also available in 59-ounce bottles. Packaging was also updated for a cleaner, simpler look with fruit photos that highlight each flavor.

In April, The Fave Juice Co., Middletown, N.J., rolled out nationally in both Meijer and H-E-B stores. Three flavors — strawberry-banana-kiwi, pomegran-ate-blueberry-goji and tangerine-orange-pineapple — are available in 46-ounce PET bottles. Based on customer feedback, the company is investigating single-serve sizes as well as a new flavor centered on peach and acai berry.

The all-natural fruit and vegetable juic-es are gluten-free and contain no added sweeteners. President and Chief Marketing Officer David Kirkpatrick noted that despite multiple new product introduc-tions in the shelf-stable category, it has seen declines for a decade. But with early con-sumer acceptance of Fave, “we believe it can add significant value to the category.”

The greatest opportunity for growth, he said, is through consumer education regarding calories, added sweeteners and daily vegetable servings. Scale is a challenge for the company and while it added new state-of-the-art bottling equipment in 2012 (including a new filler and shrink-wrap labeler) to its California facility, transporta-tion expense remains an issue so there is the possibility of one day opening a second bot-tling facility closer to the East Coast.

Silk (owned by WhiteWave Foods) expanded its Fruit & Protein juice blends (mango peach, strawberry banana and mixed berry) with the addition of refriger-ated half gallons. Previously they were only available in quarts.

Cold coffee is hot

Iced and frozen coffee is no longer relegated to a warm-weather seasonal drink. Consum-ers — especially those age 18 to 24 — seem to be reaching for cold coffee year-round. According to Mintel, 20% of all U.S. con-sumers drink iced coffee while 34% of the younger generation (18 to 24) does.

“Cold coffee, especially frozen-blend-ed, has become very trendy in major U.S. cities such as New York, but it is more than just a momentary fad,” said Mintel’s global drinks analyst Jonny Forsyth in a press release. “Its usage has been building for the last few years and actually ref lects the changing tastes of the younger generation.”

StudyLogic, Cedarhurst, N.Y., reports that U.S. sales of the blended coffee drink category grew to $4.3 billion in 2012. Manufacturers are responding to the trend by launching their own ready-to-drink options.

Traditional dairy processors are making gains in the refrigerated, ready-to-drink coffee space. WhiteWave (a stand-alone company spun off from Dean Foods) holds the top spot with its International Delight brand and the No. 5 spot with Silk. Upstate Farms and Prairie Farms hold the No. 9 and 10 positions. (See table.)

In June, Blue Diamond debuted Almond Breeze Iced Coffees, a blend of Arabica coffee and almond milk sold in four fla-vors: original, mocha, vanilla and caramel

macchiato. As with all of the company’s products they are vegan, gluten-free and non-GMO certified. Sold in half-gallon containers, each one-cup serving contains 100 calories.

Seattle’s Best Coffee teamed with Inventure Foods Inc. for its June intro-duction of Frozen Coffee Blends in Coffee Chiller, Creamy Caramel, Very Vanilla and Mega Mocha. Sold in the freezer section, each package contains two 8-ounce serv-ings. Consumers blend the product with soy, nut or cow’s milk. Each serving has zero trans fats, 10 grams of sugar and 130 calories or less.

Even Old Orchard, best known for its frozen and bottled juices, is getting intothe java mix in the coming months. The company will start with two SKUs: a café mocha and a café caramel, both in PET plastic 12-ounce frozen concentrate pack-aging. Made with coconut milk (in the con-centrate), consumers empty the can into a pitcher or a blender to reconstitute into 48 ounces of iced coffee.

“We’ve seen blended and iced coffees taking off in the café/retail environment over the past 36 months as coffee is no lon-ger an a.m. beverage,” said Miller. “It now spans across the day as snacks, pick-me-ups and sweet treats. We believe there is a great opportunity to bring that iced and blended coffee consumer into the frozen aisle for a more affordable café experience they can enjoy at home.”

Hot sales in the cold coffee category

Refrigerated RTD coffee Dollar Sales

% Change

from year ago Unit Sales

% Change

from year ago

International Delight $96,263,540 86.49 24,744,460 86.80

Bolthouse Farms Perfectly Protein $21,131,070 (15.86) 6,932,585 (15.22)

Bolthouse Farms Protein Plus $8,975,046 537.94 3,035,851 545.26

Starbucks Discoveries $5,943,799 No data 1,168,482 No data

Silk $3,924,729 No data 982,488 No data

Private Label $1,617,959 No data 612,030 No data

Bolthouse Farms $1,327,802 No data 471,874 No data

Blue Diamond Almond Breeze $1,184,809 No data 320,261 No data

Upstate Farms $906,897 (4.02) 677,254 (6.05)

Prairie Farms $265,034 No data 75,959 No data

Total category $142,578,400 77.35 39,333,970 69.22



By shaking up frozen concentrate offer-ings, Old Orchard also hopes to bring new shoppers to the aisle, “in turn exposing them to all the great beverage options found in that space,” Miller added.

WhiteWave, Blue Diamond invest

Demand for its coconut milk products led WhiteWave Foods to introduce its Silk PureCoconut Unsweetened in July. It has no added sugar and is 45 calories per serving. Two new almond milk products also hit refrigerated shelves this year, Silk PureAlmond Lights available in original and vanilla. Each has one-third fewer calories than the brand’s original almond milk.

“Consumer demand for all types of plant-based foods and beverages continues to grow,” said Sara Loveday, spokesperson for WhiteWave Foods. “Household pen-etration of the plant-based category is up 3% year-over-year as consumers continue to look for healthy great-tasting dairy-alter-native products.”

To meet growth, WhiteWave invested more than $90 million in manufacturing plants in 2012 to install five new production lines and plans to invest $150 to $160 mil-lion this year to support additional growth.

Twitter and Pinterest allow Silk to curate recipes and articles that may be of interest to consumers as well as provide an outlet for engagement.

“We know many of our consumers would rather post to our Facebook page

than call our 1-800 number,” Loveday said, “so this outlet allows us another way to provide them the information and support they need when it comes to our products.”

Blue Diamond’s Suzanne Hagener, group marketing manager, sees bringing new customers into the category as the greatest growth opportunity.

“We’ve found that once consumers try our product, they love it,” she said. In March, the Sacramento, Calif.-based brand launched an 11-ounce single-serve chocolate flavor in aseptic packaging. This summer Blue Diamond Almond Breeze Almondmilk co-sponsored Dole’s Peel the Love Summer Food Truck Tour. The 4,800-mile trip aimed to spread a message of nutrition and healthy eating. Visitors to the food truck could enjoy samples and receive recipe cards, cou-pons and free giveaways.

This year, Blue Diamond invested heavily in its plants. In March it opened a 6,500-square-foot Almond Innovation Center at its Sacramento headquarters. In June, a new state-of-the-art 200,000-square-foot plant was opened in Turlock, Calif.

Honest Tea discloses all

In the refrigerated tea category, private label holds the top spot, as measured in dollars and units sold. The top branded teas are Red Diamond, Gold Peak (a unit of Coca-Cola) and Turkey Hill (Kroger’s). (See table.)

To respond to consumers seeking moreunsweetened and zero-calorie bever-ages, Honest Tea this October rolled out Unsweet Lemon Tea nationally. The new beverage is Honest Tea’s first unsweetened option in the company’s 16.9-ounce bot-tled line and follows last year’s launch of “Not Too Sweet” tea, a lower sugar version of a country-style tea.

As with all of the brand’s packaging, this new offering uses on-bottle logos and callouts to highlight the fact that beverages are gluten-free and contain no GMOs or high fructose corn syrup.

“We have both a ‘NO GMOs’ logo on the back of all of our labels near the nutrition facts panel,” said Public Relations Manager Joanna Seiden, “as well as a statement that reads ‘No GMOs means that if there is a bioengineered version of an ingredient, we don’t use it.’”

Honest Tea actively uses social media to strengthen its relationship with consum-ers. Seiden said Twitter and Facebook are great platforms where they can interact directly with customers, by answering questions, helping with product location or just chatting.

“We also try to share content that is use-ful,” she added. “Whether it’s an inspira-tional quote and stories of people being honest, to recipes, refreshment tips or ways to decrease one’s overall environmental footprint.”

Fruit-flavored water

Earlier this year, Sparkling ICE (owned by Preston, Wash.-based TalkingRain Beverage Co.) introduced three new lemonade flavors: Raspberry Lemonade, Strawberry Lemon-ade and Lemonade with Tea to go along with its Classic Lemonade, launched in 2012. The brand went national in 2010 and is one of the fastest growing nonalcoholic beverage lines in the United States. The naturally flavored sparkling water has zero calories and is avail-able in 17-ounce plastic bottles.

Also this summer, Sparkling ICE debuted its first ad campaign as well as a website redesign to further push its growth. A 30-second national TV spot is compli-mented by billboards and building-side spectaculars and the brand was an LPGA sponsor this summer. �

April Miller is a Cleveland-based freelance writer and editor.

Coca-Cola’s Gold Peak comes on strong

Refrigerated RTD tea Dollar Sales

% Change

from year ago Unit Sales

% Change

from year ago

Private Label $167,863,700 2.4 102,263,500 1.6

Red Diamond $143,054,600 1.5 64,250,300 4.1

Gold Peak $119,618,900 22.1 50,072,000 19.9

Turkey Hill $82,269,530 7.8 45,280,460 10.1

Milos $71,159,780 9.5 28,567,240 5.7

Swiss Premium $52,880,120 (12.0) 26,205,990 (14.5)

Turkey Hill Natures Accent $33,661,460 (0.3) 16,102,450 (0.5)

Bolthouse Farms Perfectly Protein $26,278,430 (8.6) 7,625,458 (5.6)

GT's Kombucha Synergy $24,262,000 78.2 7,638,722 83.4

Lipton Pureleaf $16,978,830 309.2 7,262,994 301.9

Total category $858,936,100 7.5 421,648,800 6.9


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Sponsored by

State of the

Industry

As we wrap up 2013, it’s clear that the trends setting the agenda in the dairy category would strike insiders of almost any other food

and beverage sector as familiar. To wit:• Consumers across the board want

clean labels and “natural” ingredients.• They want products with less of the

nutritional bugbears they’re warned against (sugar chief among them),

• And more of the macronutrients they could benefit from (like protein and fiber).

• And while they may not have a firm grasp of what sustainability means, they know it’s good, and they’re hold-ing food and beverage brands to the task of delivering it.

Fortunately for dairy processors, these trends play to the category’s strengths. Dairy naturally resonates with notions of wellness, wholesome good health and stewardship of the land. But at the ground level, putting such trends into practice is a more complicated bet. That’s where finding the right ingredients comes in — because while it’s one thing to acknowl-edge the prevailing winds guiding dairy development, it’s quite another actually to address them in formulation and in production.

A holistic solutions approach

Today’s suppliers are well aware that “natu-ral,” “good-for-you” and “sustainable” mean little if the finished product doesn’t measure up to consumer expectations.

As Ivan Gonzales, marketing director, dairy, Ingredion Inc., Westchester, Ill.,

Dairy processors turn to ingredient suppliers for help in writing clean labels and

operating green, sustainable business. Suppliers show how to add additional protein

into foods and beverages.

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explained, “The dairy industry is beingchallenged to innovate at a faster pace and increase speed-to-market.”

The right supplier, he said, recognizes that “a ‘solutions’ approach encompasses activities that range from understand-ing consumer needs and how they affect product design to understanding and suggesting ideas for how to manufacture and position a product in the market.”

This deeper dive into ingredient “solu-tions” is especially critical when tackling substantive reformulations — as manu-facturers so often do these days.

“This may be a reformulation for sodi-um, fat, sugar, calorie or cost reduction,” noted Carol Rainford, senior food scien-tist, Tate & Lyle, Decatur, Ill. “Sometimes the change can be an added ingredient, such as a protein or fiber to provide nutri-tion or health benefits.”

But a true solution doesn’t just sub out yesterday’s ingredient for a more au cou-rant one.

“Providing ingredient solutions means providing a total formulation solution,” Rainford said.

Cleaning up their acts

Dairy processors are navigating this land-scape as they move their formulations toward more natural territory. According to the Dairy Foods 2013 Ingredient Study of dairy processors, fully 52% of respon-dents expected to spend more on natural and/or organic ingredients in 2013 than in 2012. That commitment belies the notion that natural is just a buzzword, either among consumers or the dairy manufac-turers who cater to them.

Senior Marketing Manager Todd L. Sitkowsk of DSM Nutritional Products, Parsippany, N.J., would agree.

“A macro trend that really stands out and is applicable with nearly all dairy-based products are naturalness and clean label,” he said. “Many dairy companies are looking to simplify their product labels and are interested in natural or naturally sourced products.”

And they’re increasingly pressured to do so. Consider that GMO Inside, a nationwide coalition of opponents of genetically modified organisms (GMOs) led by Green America, has instigated

a petition campaign to force Chobani, America’s leading Greek-style yogurt brand, to use milk only from cows not fed GMO-containing feed. Whether you support their initiative or not, the percep-tion that it’s time to clean up our acts isn’t going away.

But while natural ingredients are on the upswing as consumer awareness rises, manufacturers must still “boost the sen-sory appeal of their dairy products while delivering on the natural element,” said Loren Ward, the director of R&D for Glanbia Nutritionals, Twin Falls, Idaho. In other words, natural is nice, but taste, appearance and texture still win.

One sector where we see the conver-gence of natural sourcing and sensory appeal is in the color arena, where natu-ral is the “new normal” for today’s dairy industry. A combined study by Mintel and U.K.-based Leatherhead Food Research found that the global value of natural col-ors finally overtook that of their synthetic counterparts this year, and that the use of natural colors in new food and beverage launches now beats out synthetics by two to one worldwide.

“Natural colors are used more fre-quently, and customers want to see con-tinued improvement in stability, range and availability in natural colors,” said Mike Geraghty, president, color group, Sensient Technologies Corporation, St. Louis, Mo.

Experts agree that today’s natural options deliver more shades — and deliv-er them more stably — than in the past, even under stressful processing and prod-uct environments, such as acidic drinks and yogurts.

This past summer, in fact, the company launched what it claims is the first titiani-um-free opacity agent in the industry, giv-ing manufacturers a unique clean-label alternative to titanium dioxide. The pow-der falls outside the realm of California’s Proposition 65 labeling requirements, while also being GMO-, allergen- and off-note free, and stable across pH levels. As an added bonus, a company press release notes that its coating properties make it

� Consumers say they want to reduce the total sugars they consume. Sweetener suppliers offer solutions and advise how the alternatives will interact with other ingredients in a product formulation.

Photo courtesy of Glanbia

an excellent zero-calorie replacement fordusting sugar — helping manufacturers address another contemporary formula-tion demand.

The lowdown on sugar reduction

Indeed, consumers are increasingly uneasy with the amount of sugar in their diets — and they’re displaying a concomitant zeal to scrub it from the products they pur-chase. It’s a complicated issue that sorts sweeteners into “good” and “bad” camps that, though real in consumers’ minds, may not be all that credible from a nutri-tion science standpoint.

Nevertheless, the public is warming up to the argument that calories do count, and that we’re getting too many of them from simple carbohydrates. No wonder a recent consumer attitudes and behavior study from Mintel found that total sugars more than any particular sweetener are what consumers aim to avoid, with any-where from 17% to 26% of soda, yogurt and bread purchasers claiming to want fewer sugars overall.

Sweetener suppliers are paying heed. As Steviva Ingredients President Thom King said, “We believe that replacing sugar in yogurt, ice cream and flavored milk with all-natural sugar substitutes will be a trend in the coming years.”

The head of the Portland, Ore.-based firm said he has heard from several dairy processors “asking for a solution to reduce calorie counts in prepared fruit concentrates for flavored yogurt, as well as in flavored milk. Yet while they’re con-cerned with sugar content, the second-greatest concern is being able to deliver a clean label to consumers.”

And there’s the rub. Replacing sugar with a “chemical-sounding” high-inten-sity sweetener might solve one prob-lem even while creating another. Then there’s the effect that removing sugar has on the underlying formulation and processing dynamics.

As Gonzales said, “Reducing sugar in dairy not only impacts the sweetness pro-file, but also has an impact on the taste and texture of the final product.”

Add to that the unintended conse-quences on mouthfeel, lost bulk, shelf stability and freezing-point depression and you understand: Any sugar-reduc-tion solution needs to answer the top-

level trend, while also contending with the unintended consequences of the substitution.

So what options are out there? Natural, stevia-based alternatives have been getting most of the attention, as

successive generations improve upon the initially objectionable taste of some steviol glycosides.

In guiding customers to the optimum option, whether stevia or otherwise, King described his approach as “collaborating

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with manufacturers on finding the exactnatural sugar substitute for their particu-lar application.”

So if mouthfeel and flavor are top pri-ority in a dairy beverage, he’d point the formulator not to a pure stevia option that only replicates sugar’s sweetness, but to a blend that might also include non-GMO crystalline fructose as a carrier and bulking agent, or to a stevia-fortified agave nectar that also adds needed bulk.

In addition to building back some of sugar’s texture, “Both deliver a lower cal-orie count, clean label, brilliant mouth-feel and a flavor profile identical to HFCS or sucrose,” King said.

One dairy category that has consistently complicated sugar-reduction efforts is fro-zen dairy. As Rainford said, “The loss of solids is not only important from texture, mouthfeel and flavor standpoints, but also in terms of the freezing point. Rebalancing the hydrocolloids and bulking agents is crucial to achieving the desired freezing point and texture of the product.”

Bulking agents like polydextrose, maltodextrin and polyols are go-to solu-tions for reduced-sugar ice creams and frozen yogurts. Processors can also use a soluble corn fiber to partially replace solids in reduced-sugar formulations, Rainford said. And depending on the use level, it might also “deliver the added ben-efit of a dietary fiber claim,” she noted.

Speaking of which, soluble oat fiber, which used to be limited mainly to baked goods and cereals, is now practical for use in dairy beverages thanks to extra-fine forms of oat beta-glucan from companies like DSM.

“Drinkable yogurt is a primary tar-get for heart-healthy fortification, as are dairy smoothies,” said Marlena Hidlay, marketing manager at DSM. “Dairy-based oat beverages are gaining popular-ity as consumers look for convenient, yet nutritious, on-the-go meals and snacks.”

Protein positive

Introducing good-for-you ingredients like oat and corn fiber is the flipside of the cut-the-sugar imperative that colors so much of today’s dairy development. The recent Dairy Foods 2013 Ingredient Study found 36% of respondents planning to increase their 2013 spending on functional ingre-dients like amino acids, antioxidants, vita-mins and minerals over the previous year’s levels. And if industry observers are right, a healthy chunk of that spending will go to protein ingredients.

What makes dairy proteins so appeal-ing to consumers are their high levels of essential amino acids, not to mention their widely acknowledged quality as a protein source. For product developers, they’re exceptionally functional and have a reputation for operational friendliness.

“We predict a continued rise in the popularity of dairy proteins as more con-sumers become aware of their nutritional benefits,” said Ward. “As a result, manu-facturers are looking to combine nutri-tion and functionality, and ingredient solutions are following suit.”

Today’s dairy proteins are worlds bet-ter than their predecessors thanks to this melding of health with practicality.

“We are reaching a level of complex-ity that allows for the tailoring of whey protein and milk protein ingredients for specific nutritional and functional char-acteristics,” Ward said.

For example, functional whey protein concentrates can stabilize emulsions in salad dressings and sauces while also allowing for fat reductions of as much as 25% with-out compromising taste or texture, he said. Functional whey proteins increase yield, improve mouthfeel in yogurts and dairy drinks and can mimic the water-binding and gelling properties of pricier ingredients like gums, phosphates and hydrocolloids.

Dairy protein’s nutrition story deserves the attention it’s getting. For example, we start losing 1% to 2% of our muscle mass per year once we hit age 40 to 50, Ward said.

“Research shows that many can decrease this rate of muscle loss by exercising and con-suming proteins that are quickly absorbed, have a high level of the amino acid leu-cine and also contain significant levels of branched-chain amino acids,” he said.

Sustainable strategies

So where does sustainability fit into this picture — and what, for consum-ers, manufacturers and their suppliers, does the term mean? The industry is still figuring that out, but it’s implementing across-the-board sustainability strate-gies in the process. Indeed, if you’re not dedicating some effort to sustainability, you’re falling behind.

Ward notes that his company’s heri-tage “is rooted in sustainability,” dating back to its inception as a cooperative of

� A conventional glass of milk offers 8 grams of protein in 8 ounces. Dairy processors are boosting protein levels to appeal to consumers’ desire for muscle-building beverages. In flavored-milk products, the challenge is reducing sugar levels while maintaining taste and mouth feel.

Photo courtesy of Ingredioin


Irish dairy farmers. Even now, with per-sonnel numbering roughly 1,000 and locations in the Western United States, Glanbia “has retained its sustainable strategy,” he declared.

The company has collaborated with the Innovation Center for U.S. Dairy in “pre-competitive, multi-stakeholder initia-tives to achieve the breakthrough goal of reducing all dairy greenhouse gas emis-sions by 25% by 2020,” he said.

For its part, Steviva “believes there is no responsible alternative to doing business other than through environ-mentally sustainable practices,” King said. That’s why the company’s packag-ing comes from 100% recycled plastic, it operates its own internal recycling program, its f leet vehicles run on alter-native fuel, renewable sources power its manufacturing and office facilities and the company maintains a commitment to zero-carbon output while also donat-ing a portion of net profits to nonprofit environmental organizations.

Sensient Colors’ line of palm-free nat-ural colors addresses both the natural trend and concerns surrounding defor-estation and wildlife habitat preserva-tion raised by the skyrocketing growth in palm production. The new colors are free of palm-derived components and fare well in stability testing and against degradation, according to a company press release.

Some suppliers are even helping dairy processors buff their own sustainability profiles with ingredients that can clean up some aspect of formulation or production. For example, Ingredion offers a texturizing system that Gonzales said addresses the Greek yogurt trend and its by-product: acid whey. Acid whey harms aquatic life and confounds easy disposal. The value of the texturizing system is that it lets manufac-turers avoid both the upfront costs of tradi-tional Greek-style straining equipment and the acid whey that straining generates.

Alternatively, manufacturers could take advantage of a newly developed process that turns all that acid whey into nutritious, high-margin dairy products like fermented protein beverages, whey smoothies and fermented desserts. Dairy processors can trade storage, transporta-tion and disposal costs for potential prof-its from value-added products, according to an Arla Food Ingredients press release. It sounds like a fair trade.

As Gonzales said, the key to making sustainability stick is “making operations and improvements cost efficient, so they do not impact product profitability.”

In fact, you could say the same for all the other trends that have swept dairy in the past year — and will likely keep the wind in its sails for 2014. With “clean, lean, green and full of protein” an unofficial ral-lying cry, it’s a relief to know that the state of the ingredient sector is strong. �

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State of the

Industry

U.S. dairy exports, by value, are on track to top $6.5 billion in 2013 — another record, and up more than 25% from the year

before. And while it’s tempting to call this year exceptional, that wouldn’t be the case. Over the last decade, the value of U.S. dairy exports has increased, on average, 20% per year.

If U.S. dairy exports were a mutual fund, it would get a five-star rating. A 25% gain? This would be the sixth time in the last 10 years.

After a heavy, two-year supply surge — a surge that was gobbled up all along by robust global demand — milk pro-duction expansion among the world’s major exporters came to a halt in August 2012. In March 2013, when a major drought cut New Zealand’s sea-son short, global milk powder prices jumped more than 50% in a matter of weeks. Prices pulled back after the initial frenzy, but remarkably firmed again in the third quarter.

“We are amidst an unprecedented period of high pricing in terms of level and duration,” stated Rabobank in its September Dairy Quarterly.

In the first three quarters of the year, international benchmark prices for milk powder were up about 40% versus a year ago. Cheese, butterfat and whey were each up 10% to 20%. In the international arena, U.S. products, by comparison, have been a good bargain.

Of course, it was more than just New Zealand farmers who saw pro-duction declines. Other major suppli-

U.S. dairy exporters have become stronger. Exports have increased an

average of 20% a year in the last decade.

By Alan Levitt, U.S. Dairy Export Council

Full steam ahead

The cast: Milk powders, whey, cheese

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ers also provided less milk. In the 12months ended July 2013, milk produc-tion in the European Union, United States, New Zealand, Australia and Argentina was 267.8 million tons, down 1.2% (3.4 million tons) from the year before. This left the market undersupplied, but it also presented the United States with an excellent opportunity. Among the world’s lead-ing exporters, the United States was the only one to increase production in the first half of 2013 (when adjusted for leap day in 2012).

Meanwhile, global demand has been solid in 2013, led by China and Russia, the world’s top two dairy buy-ers. China’s purchases of milk pow-der, whey, cheese and butterfat were up 16% this year (through August), while Russia’s imports were up 20% (through July). This has offset more cautious buying from other major importers, such as Southeast Asia, Mexico, Japan and Algeria, where import volumes have been steady in the face of higher prices.

Gaining share

This combination of favorable conditions — supply declines from all our major competitors, good world demand, world prices higher than U.S. prices, continued commitment from U.S. suppliers — has enabled U.S. suppliers to gain share in 2013. Among the top nine exporters (the above-named five, plus Belarus, Uru-guay, Switzerland and Ukraine), U.S. export share of milk powder, cheese, butterfat and whey reached 18.4% in the first half of the year, up 2.3 points from the 2012 total. SMP share was 30% (up 4.4 points) and cheese share was 15.6% (up 0.8 points).

Moreover, we’ve gotten stronger as the year has gone on. In the May-July period, U.S. exports by volume were up 20% versus the prior year, while New Zealand, Australia and the EU were down 25%, 20% and 8%, respectively.

As exports have blossomed, they’ve come to represent a larger share of U.S. milk production. In the first seven months of the year, 15.2% of U.S. milk production (on a total-solids basis) has been shipped overseas, compared with an average of 13.1% in 2010 to 2012.

Bullish outlook

At this writing, the outlook for the global dairy markets remains bullish through year-end, at least. Inventories are still light — both at the manufacturer level and the user level. Buyers aren’t purchas-ing too far ahead and need to stay in the market for coverage.

Besides China and Russia, “low stocks and pent-up demand in other import regions have set the scene for vigorous competition for imports through the balance of 2013, and likely into early 2014,” Rabobank stated.

In addition, the forward curve on Global Dairy Trade auction prices is relatively f lat into first quarter 2014, and Fonterra raised its 2013/14 pay-out forecast three times in the third quarter, suggesting they believe prices will remain high throughout their marketing year. European processors are paying near-record milk prices as well, on the expectation for firm end-product pricing.

“The prospect of any significant soft-ening in world prices will be delayed, possibly until Q2 2014,” according to Rabobank.

In addition, even as the global mar-ket cycles lower, the price f loor is likely higher than in previous years — a com-bination of higher costs of production and emerging-market buyers’ willing-ness to pay more.

“Accumulated demand amongst second-tier importers and an improv-ing global economy may even ensure a soft landing for prices,” concluded Rabobank.

In this environment, U.S. suppliers will have to build on this year’s success to retain progress made in 2014. �

Alan Levitt is vice president of commu-nications and market analysis for the U.S. Dairy Export Council, Arlington, Va. USDEC is primarily supported by Dairy Management Inc., Rosemont, Ill., through the producer checkoff.

Source: USDEC projection

Source: USDA

China’s whole milk powder imports grow

U.S. dairy imports, values (30-day months)

Copyright © 2013 DuPont or its affiliates. All Rights Reserved. The DuPont Oval Logo, DuPont™, Danisco® and all products denoted with ® or ™ are registered trademarks or trademarks of E.I. du Pont de Nemours and Company or its affiliated companies.

IDEAS INSPIRED BY KNOWLEDGE

Photo (top): The 2013 first place recipient, Lynette Andersen (Washington State/University of Idaho, right) accepts a check for $10,000 alongside DuPont team member Cathy Miller. Other members of the team (not pictured): Yinmeng Sun, Athena Beckwith, John Ock and Karen Thorsen.

Watch how we cultivate knowledge and bring innovation to the products you make at danisco.com/knowledge

DuPont ingredients inspire ideas at all levels – from senior research scientists to aspiring food technologists. The power of knowledge and functional ingredients to fuel innovation is exemplified in the winning entry for the 2013 Knowledge Award from Washington State/University of Idaho.

Leveraging the increasing popularity of Greek-style yogurts, team members from Washington State/University of Idaho presented a refrigerated, ready-to-eat Greek yogurt cheesecake with all the satisfying attributes of a full-fat cheesecake, but without all the calories. This creation forhealth-conscious dessert enthusiasts used several DuPont™ Danisco® ingredients, including Litesse® polydextrose to overcome the loss of fat when cream cheese is removed, and to provide a source of dietary fiber.MicroGARD® 100 cultured skim milk was added as a natural antimicrobial to help prolong shelf life.

Dairy Foods is pleased to work alongside DuPont in bringing you the DuPont Knowledge Award New Product Contest.

For more information about the DuPont Knowledge Award New Product Contest, call 800.255.6837 ext. 3436 or visit danisco.com/knowledge

April 2012Innovative Ideas for Dairy Processors

www.dairyfoods.com

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SUPPLIER NEWS

Alfa Laval finds the best way to clean Greek yogurt residue

Israel’s Tara Dairy chooses Arcil FFS line for yogurt

Alfa Laval Tank Equipment, Exton, Pa., makes rotary jetheads, rotary sprayheads and static spray balls

to clean dairy tanks. Engineers tested all three types of equipment to find which was the best for cleaning the residue after processing conventional and Greek yogurt.

Tests were done by applying a film of both types of yogurt in a test tank and letting it settle for four hours to create a worst-case scenario. The cleaning water was heated to the desired temperature and hooked up to the tank. Finally the spray device was mounted.

In every single test, the regular yogurt was much easier to clean than Greek yogurt. This confirmed the initial belief that this would be the case.

Although all three cleaning devices provided an ade-quate level of tank cleaning for regular yogurt, the rotary jethead was the only device to fully clean the entire Greek yogurt tank, including the roof. For the cleaning of regular yogurt, a rotary sprayhead adequately does the job.

Read the complete study results in a white paper written by Jessica Letscher and Drew Nakajima of Alfa Laval Tank Equipment. Search for “How to clean Greek yogurt residue in process tanks” on dairyfoods.com.

Tara Dairy, the third-largest dairy brand in Israel, and its partner Müller have chosen a

form-fill-seal (FFS) line by Arcil to increase the manufacturing capacity for yogurt and desserts in the new factory in Netivot, Israel.

“In conjunction with the design of the new factory, we strongly and urgently needed to expand our manufac-turing capacity for yogurt and desserts. We choose Arcil’s FFS technology for the production flexibility it adds and the lower costs it involves in terms of materials,” said Tara Engineering Vice President Ronnie Sitton.

Müller fruit yogurt is packaged in conical, thermoformed cups. The label (made with glossy coated paper) is applied during production on an outsourced labeling station based on Arcil’s patented rotary mold principle. The mixed-paper lid is heat-sealed before the packs are cut into four. The cups are then placed in a box by a Tecmapack boxing machine integrated by Synerlink, Arcil’s engineering department. The efficiency of the full line offers a production capacity of 20,000 cups per hour, including technical downtime.

Depending on production needs, the same line produces two different products in two cups with different shapes and materials. The filler is integrated on the FFS machine by Dosil, Arcil’s filling business unit. It can be sterilized on site and allows for quick production changes, the company said.

� The 3-A compliant Gamajet Aseptic 1 tank cleaning machine provides a high impact, full coverage clean, using less water and time than conventional tank cleaning methods.

BUSINESS BRIEFS

DuPont Tate & Lyle Bio Products Co.said it has partnered with Symrise for

the use of Zemea USP propanediol as a

carrier for compounded flavors. Zemea

USP propanediol is a natural, 100 per-

cent biobased solvent and humectant

made from fermentation of glucose and

an environmentally sustainable alternative

to petroleum-based glycols and glycerin.

Synergy Flavors Inc. opened its new

corporate headquarters in Wauconda,

Ill., in October. Synergy used an existing

building as the cornerstone of its new

15-acre campus. This building was modi-

fied and expanded into a 145,000 sq. foot,

state-of-the-art flavor development and

manufacturing center.

TIC Gums opened the Brass Mill Opera-

tions Center in Belcamp, Md., in October. TIC

Gums has three facilities in Maryland. The

Brass Mill center is an approximately 200,000

square foot facility on 20 acres.

Virginia Dare, Brooklyn, N.Y., and its

partner Soarary of Madagascar, have

announced a new dual strategy to improve

the sustainability of Madagascar’s vanil-

la market. Virginia Dare/Soarary have

donated materials and provided training

for proper curing to a group of roughly

150 growers. To improve food security for

Madagascar’s vanilla growing community,

the partnership guarantees participating

farmers access to affordable rice during

the annual shortage period.

PEOPLE

Fristam Pumps USA, Middleton, Wis., said

Armando Diaz joined the company as

bilingual applications engineer. In this

position, Diaz will provide technical sup-

port and customer assistance to Fristam’s

Latin American customers.

Alchemy Systems, Austin, Texas, hired

Christine Mills as senior vice presi-

dent of global sales and marketing.

Industry Relat ions Manager LauraDunn Nelson was promoted to vice

president of technical services & busi-

ness development. Alchemy Systems

offers food safety training.

� Tara Dairy produces yogurt cups on a form-fill-seal line by Arcil.


SHOWCASE

EVERCAN TECHNOLOGY CORP. MAER SA launched its NTN trimmer-combiner mono-block system for reliable trim-ming, handling and transporting high productions of tandem neck-to-neck manufactured bottles (like drinkable yogurt bottles). The system features highly efficient continuous production with no line stops. It occupies little space for large production volumes (up to 50,000 bottles per hour). It’s simple to integrate and suitable for working with both continuous blow moulding (rotary/wheel) and linear (intermittent/reciprocating screw) technologies. MAER is represented by Evercan Technology.914-941-3600; www.maer.es/en

CDF CORP. CDF Corp. has created a customer ben-efit by modifying the IBC form-fit liner to include holes in the perforated flaps. The holes help hold the liner in place during filling. By keeping the liner squared, these flaps make fills easier. Once the IBC form-fit liner is filled, the flaps can be detached and used with a winder for dispensing. This feature is now part of all of CDF’s stock IBC form-fit liners.800-443-1920; www.cdf1.com

LYCOREDLycoRed Ltd., has developed new beta-carotene colorant formulations deliver-ing high-intensity coloring. Lyc-O-Beta Intense and BetaCote Intense deliver increased color intensity allowing for lower colorant usage. The new line is highly sol-uble and available in a concentrated liquid form for user-friendly processing and production. It is non-foaming and avoids clumping issues common to some pow-dered colorant formats, making it ideal for use in ready-to-drink beverages.973-882-0322; www.lycored.com

3M3M Food Safety’s Petrifilm Rapid Yeast and Mold Count Plate is an indicator test that enables the detection of yeasts and molds in as little as 48 hours. This new test reduces the five-to-seven day delay typi-cally seen with conventional agar testing methods. The sample-ready system uses an easy three-step process: inoculation, incu-bation and enumeration. The test results in blue-colored yeast and mold colonies and contains technological enhancements that prevent colonies from spreading or overlapping.888-364-3577; www.3M.com

LT INDUSTRIES LT Industries’ analyzer is designed to improve quality control and production in dairy pro-cessing. The new IsoPharm dairy analyzer allows for real-time online process monitoring, includes CIP/SIP probes and can measure up to 20 process points. Common measure-ments include fat, protein, lactose, solids, solids non-fat, casein and pH. The machines can integrate directly into existing control systems. They are designed to measure all varieties of dairy: milk, powders, creams, butter, cheese and intermediate products. 301-990-4050; www.ltindustries.com

FLEXLINKFlexLink’s new X65 platform high-speed conveyor is designed for low friction, low power consumption and a long service life. The company also introduced new high-efficient drive technology to further reduce power consumption. Depending on the application and choice of drive unit, power consumption is 8% to 44% less compared to previous high-efficiency drive units by FlexLink. X65 is capable of double speed compared to previous con-veyor generations.610-973-8200; www.flexlink.com

SHOWCASE

TETRA PAK Tetra Pak’s LightCap 30 is a high-density polyethylene cap made from sugar cane. The renewable material polyethylene used in LightCap 30 starts out as sugar cane. The cane is crushed and the juice fer-mented and distilled to produce ethanol. Through a process of dehydration, ethanol is converted into ethylene, which is then polymerized to produce the polyethylene used to manufacture the cap.847-955-6000; www.tetrapakusa.com

SCHOLLE PACKAGING Scholle Packaging introduced its new Sure-Fill aseptic filler for bag-in-box at Pack Expo in September. The filler combines advanced bag-in-box filling technologies in an operations-friendly machine. Pro-cessors will gain production flexibility in their operations with bag size and fitment versatility, superior throughput rates, quick changeovers, longer run periods between clean-up, and enhanced product and opera-tor safety, according to the company. 708-562-7290; www.scholle.com

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METTLER TOLEDOMettler Toledo CI-Vision showcased its new V6300 vision inspection system at Pack Expo in September. The new system combines thorough product inspection with maximum production throughput and convenient installation. It is flexible, adapting its physical structure, number of cameras and lights to meet the specific needs of each production line it is installed on. The V6300 quickly adapts to higher speeds and product changeovers to ensure that 100% of the products leaving a facility have been inspected for defects. 800-889-9500; www.mt.com/pi


SHOWCASE

ROSSRoss SysCon’s line includes the Single Axis Control System in a NEMA-4X stainless steel enclosure for soft start and variable speed control of a Ross Ribbon Blender. This UL-rated panel fea-tures a 4-inch color touch screen that’s mounted on the panel door for control and viewing of agitator speed, load, cycle time and forward/reverse agitator direction. It also features variable frequency drive, emergency stop button, fused rotary disconnect switch, branch circuit protection and interlocking safety circuitry. 866-797-2660; www.mixers.com

TRIANGLE PACKAGING MACHINERY Triangle‘s model XYM bagger provides food packagers with the flexibility to seal bags with traditional heat sealing or ultrasonic welding. The ultrasonic cold-sealing technology offers prod-uct, material and energy savings, significantly less rejects and improved worker safety. It’s ideal for cheese and other applica-tions that require 100% seal integrity for an airtight product. 800-621-4170; www.trianglepackage.com

PS Form 3526Statement of Ownership, Management, and Circulation

(Requester Publications Only)1. Publication Title 2. Publication Number ISSN 3. Filing Date

DAIRY FOODS 446850 8880050 09/26/2013

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Contact PersonWAFAA S KASHAT

Telephone(248) 786-1631

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9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor

Publisher (Name and complete mailing address)THOMAS S IMBORDINO155 N PFINGSTEN RD STE 205DEERFIELD, IL 60015-5293

Editor (Name and complete mailing address)JIM CARPER155 N PFINGSTEN RD STE 205DEERFIELD, IL 60015-5293

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11. Known Bondholders, Mortgagees, and Other Security Holders Owning orHoding 1 Percent or More of Total Amount of Bonds. Mortgages, or OtherSecurities. If none, check box X None

Full Name Complete Mailing Address

PS Form 3526-R, September 2007 (Page 1) PRIVACY NOTICE: See our privacy policy on www.usps.com

13. Publication Title 14. Issue Date for Circulation Data Below

DAIRY FOODS 09/01/2013

15. Extend and Nature of CirculationAverage No. Copies Each IssueDuring Preceding 12 Months

No. Copies of Single IssuePublished Nearest to Filing Date

a. Total Numbers of Copies (Net press run) 18637 19128

b. LegitimatePaidand/orRequestedDistribution(By MailandOutsidethe Mail)

(1)

Outside County Paid/Requested Mail Subscriptions statedon PS Form 3541. (Include direct written request fromrecipient, telemarketing and Internet requests fromrecipient, paid subscriptions including nominal ratesubscriptions, employer requests, advertiser's proofcopies, and exchange copies.)

(2)

In-County Paid/Requested Mail Subscriptions stated onPS Form 3541. (Include direct written request fromrecipient, telemarketing and Internet requests fromrecipient, paid subscriptions including nominal ratesubscriptions, employer requests, advertiser's proofcopies, and exchange copies.)

(3)Sales through Dealers and Carriers, Street Vendors,Counter Sales, and Other Paid or Requested DistributionOutside USPS

(4) Requested Copies Distributed by Other Mail ClassesThrough the USPS (e.g. First-Class Mail)

12321 12255

0 0

88 79

9 14

c. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), (4)) 12418 12348

d. Nonre-questedDistribution(By MailandOutside theMail)

(1)

Outside County Nonrequested Copies stated on PSForm 3541 (include Sample copies, Requests Over3 years old, Requests induced by a Premium, BulkSales and Requests including Association Requests,Names obtained from Business Directories, Lists,and other soruces)

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(3)Nonrequested Copies Distributed Through the USPSby Other Classes of Mail (e.g. First-Class Mail,Nonrequestor Copies mailed in excess of 10% Limit

(4)Nonrequested Copies Distributed Outside the Mail(include Pickup Stands, Trade Shows, Showrooms andOther Sources)

5531 5427

0 0

0 0

162 814

e. Total Nonrequested Distribution (Sum of 15d (1), (2), (3), (4))

f. Total Distribution (Sum of 15c and 15e)

g. Copies not Distributed

h. Total (Sum of 15f and 15g)

i. Percent Paid and/or Requested Circulation ((15c / 15f) times 100)

5693 6241

18111 18589

526 539

18637 19128

68.57 % 66.43 %

16. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the

NOVEMBER 2013 issue of this publication.

17. Signature and Title of Editor, Publisher, Business Manager, or Title Date

WAFAA S KASHAT AUDIENCE AUDIT/POSTALSPECIALIST 09/26/2013 00:00:00 AM

I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information onthis form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/orcivil sanctions (including civil penalties).

PS Form 3526-R, September 2007 (Page 2) PRIVACY NOTICE: See our privacy policy on www.usps.com

SCHNEIDER PACKAGINGSchneider Packaging Equipment Co. introduced the next genera-tion Bottle Packer Row case packer to its Robox family of products at Pack Expo in September. The Robox BPR is ideal for packing blow molded plastic HDPE, PET, PVC, PP and other bottles into service cartons with or without liner bags. The case packer is now com-pletely modular allowing for faster deliveries and improved returns.315-676-3035; www.schneiderequip.com

To place a classified ad, contact Suzanne Sarkesian, Dairy Foods Classified Sales

Representative at 248-593-0651 or fax to 248-283-6596, [email protected].

AUCTION

HARRYDAVIS& COMPANY

Visit Our Web Site forDetails & Online Bidding!

Call for Color Brochure

412-765-1170

www.harrydavis.com

AUCTIONformer KRAFT/Churny

Cheese Packaging FacilityTuesday, December 3 - Waupaca, WI

Real Estate & Equipment• GEA Tiromat Horiz. Thermoformer Line• Kliklok Wraparound Cartoner, Case Packers• (2) Ohlson 8-Head Scale Fillers w/A.B. PLC• Edlund Auto Can Openers, Can Washer• S/S Fitzmill, Urshel Dicer, Scales, Metal Det.• Refrigeration, Boilers, General Plant Equip.• PRIME REAL ESTATE: Very Well Maintained57,000 sq. ft. food grade facility on 3.56 acres

EMPLOYMENT

THE SKILLS YOU NEED THE PEOPLE YOU WANT

Permanent Placement across the U.S., Mexico & Canada

JUDGE, INC.Plant- & Corporate-Level SearchMaintenance / Engineering

To submit resumes or engage searches, please contact:

Tina Gannon, DirectorFood & Beverage Mfg

(888) 890-2972 ext. [email protected]

tt PlPl ttPP

CLASSIFIEDS

SERVICES

SAVE YOUR PRODUCT ANDYOUR GOOD NAME

HACCP Compatible solution for detecting foreign particles in your product.

X-RAY INSPECTION

Call CXR COMPANY • Warsaw, IN800-817-5763 • fax 574-269-7140

www.cxrcompany.com

• Metal • Stone• Glass • Plastic• Bone • Rubber

FAST RESPONSEFREE TESTING

Join the Dairy Foods LinkedIn Group> www.dairyfoods.com/connect

Join quality and manufacturing professionals from all over

the world at Dairy Foods Magazine Professional Network

on LinkedIn. Read and participate in industry news, trends,

educational opportunities, jobs and discussions.

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Find us on Twitter @dairyfoods. Get great article headlines,

communicate with our staff and share your opinion with us.

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and information. Find us on Twitter, LinkedIn and Facebook.

Become a Fan of Dairy Foods on Facebook> www.facebook.com/dairyfoods

Connect, share and interact with other individuals in your

industry. We’ll share the latest information and events going on

around you.


CLASSIFIEDS

ADVERTISE HERE Contact Suzanne Sarkesian at 248-593-0651

EMPLOYMENT

AUTOMATION MANAGERSeparators, Inc., North America’s leading centrifuge service provider, is seeking an Automation Manager to be based in Indianapolis, Indiana. Candidate must have proven, hands on, automation / controls experience in the dairy/food/sanitary processing industries. This position will be responsible for process controls, instrumentation and related components affecting pressures, flow and temperatures. Strong project management, communication and interpersonal skills are required. The candidate should be able to multi-task and be self directed.

Accountabilities include: Ensuring all controls are manufactured, programmed, and bench tested, documenting control systems and equipment layout, maintaining accurate customer controls database, troubleshooting of controls and VFD’s, sourcing required components, participating in customer start-ups and providing customer and sales automation support.

Candidates should meet the following qualifi cations:• 10+ years of direct automation experience with sanitary processing• Profi cient in AutoCAD• Profi cient in RSlogix 500 and RSlogix5000• Working knowledge of electrical, pneumatic and hydraulic systems and controls• Experience with AC motors, frequency drives, programmable logic controllers,

human machine interfaces, low voltage DC, and analog and communication signals and devices

• Ability to perform fi eld (in plant) work• Approximately 25% travel required

Compensation is commensurate with experience. Benefi ts include health/ dental/ life/ disability insurance, 401K, vacation and holidays. Interested parties should send resume and salary requirements to:

SEPARATORS, INC.

Attn: Human Resources5707 W. Minnesota St.Indianapolis, IN 46241

EXCEEDING EXPECTATIONS AS YOUR SEARCH PARTNER

Our mission is to earn the privilege of becoming our client’s exclusive recruitment resource for key search activity. We do this by LISTENING to our clients needs to develop an understand-ing of the ideal candidate. We FOLLOW-UP throughout the entire recruitment process with conscientiousness and a respectful sense of urgency. We reliably DELIVER freshly recruited, qualified and interested candidates to fill our client’s positions.

Our pursuit of excellence and our dedication to the Food Processing Industry, has earned our firm a reputation we are proud to have, and one that you can trust. To learn how your business can benefit from our extensive industry knowl-edge and experience, contact us today.

JEFF HENSON, PRESIDENT

CALVIN DEVOLL, DIRECTOR

Phone / Fax: 866-898-9911Web: http://www.hensonpartners.com

HENSON PARTNERS, INC.SPECIALIZED EXECUTIVE SEARCH

SOFTWARE


[email protected]

Custom/Proprietary Blends and WONFs. All flavors and varieties

available.

SQF Level III facility with on-site QA and lab capabilities.

Bulk juice concentrates ideal for blending,

winemaking, brewing, or dairy applications.

www.skellerupfootwear.us Free Call 855 253 0920

CALL NOW TO SEE IF YOU’RE ELIGIBLE

FOR A FREE TRIAL PAIR

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A&E Aluminum Products, LLC(800) 444-8969 • (410) 620-3915Fax: (410) 620-3917www.Aluminumcarts.comContact: Pat Brown

All major credit Cards Accepted

“The Original Ice Cream Dolly”

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Check out our new website www.aluminumcarts.com more models…more options.

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EQUIPMENT FOR SALE

DAIRY ASSOCIATIONS

DIMA (ITALY) EUROPEAN DESIGNED MOZZARELLA COOKER-STRETCHERCapacity To 1,000 Kg (2,000 Lbs) Per Hour, Off ered Complete With Hot Water Tank, Hot Water Circulation Tank And Cip Balls, Model Tagliacag Dmo2, Type 02232, Serial Number 1104027, Manufactured 2011. Overall Dimensions 2385 Mm (7’ 10”) Long X 1500 Mm (4’ 11”) Wide X 1845 Mm (6’ 1”) High. Unit Is Complete With Curd Dicer Mounted On Top Of Machine, Dual Auger Cooker Section And Dual Articulating Cooked Curd Working Arms. 220/440 60 Hz. NEW, NEVER USED.Contact: George Bamman, International Machinery Exchange, 608-764-5481, fax 608-764-8240, [email protected], www.imexchange.com

THE ALL STAR ASSOCIATION IS A BUYING ASSOCIATION SERVING THE FOOD AND DAIRY INDUSTRY

SINCE 1958. OUR MEMBERS ENJOY VOLUME PRICED PURCHASING,

QUALITY ASSURANCE, COMPREHENSIVE TRAINING

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TO LEARN MORE OR TO APPLY FOR MEMBERSHIPVISIT US ONLINE:www.allstarassociation.comOR CALL 800-930-3644

BLOW MOLD TRAINING

BRUCE MEYER - Blow Mold Engineer

www.blowmoldtraining.com • [email protected]

P.O. Box 1373Huffman, TX 77336

Ph/Fax: 281-324-5031Cell: 281-831-2072

Need Training? Call the Doctor!


CLASSIFIEDS

EQUIPMENT FOR SALE

NEW & USED CARTS80 G A L B O S S Y S

120 G A L B O S S Y S W H E E L C A R T S 4 W H E E L C A R T S

F O L D - U P C A R T SZ I N C P L AT E D S TA I N L E S S S T E E L

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Cart-Mart Inc. A Division of Matco8780 Middlebrook Dr.Ft. Myers, FL 33908

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*Industrial Flooring (over 500,000 sq ft)

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Phone (619) 628-8282 www.klasertile.com Across the U.S.A



AD INDEX

Company Name Website Phone Page No.

A&B Process Systems www.abprocess.com 888-258-2789 9

Admix, Inc. www.admix.com 800-466-2369 33

Agri-Mark, Inc. www.agrimark.net 608-783-9755 32

Amelia Bay, Inc. www.ameliabay.com 770-772-6360 3

Anderson Custom Processing Inc. www.andersonprocessing.com 507-233-2800 6

Bentley Instruments www.bentleyinstruments.com 952-448-7600 32

Chr. Hansen, Inc. www.chr-hansen.com 800-558-0802 75

David Michael & Co. www.dmflavors.com 800-DM-FLAVORS 47

Delkor Systems, Inc. www.delkorsystems.com 800-328-5558 BC

DSM Food Specialties Europe www.delvo.com +31 (0)15-2793474 41

DSM Nutritional Products, Inc. www.dsm.com/human-nutrition 800-526-0189 31

DuPont (formerly Danisco) www.food.dupont.com 913-738-3421 49, 83, 87

Fristam Pumps, Inc. www.fristam.com/usa 800-841-5001 4

Fruitcrown Products Corp. www.fruitcrown.com 800-441-3210 53

GEA Process Engineering, Inc. www.niroinc.com 410-997-8700 IFC

GEA Tuchenhagen North America www.tuchenhagen.us 866-531-5629 25, 81

Gebo Cermex www.gebocermex.com 678-221-3570 11

Harpak-ULMA Packaging www.harpak-ulma.com 800-813-6644 67

Ingredia Inc. www.ingredia-functional.com 419-738-4060 79

Ingredion www.ingredion.com/us 800-443-2746 12 a-b

International Dairy Foods Association www.idfa.org 202-737-4332 13

iTi Tropicals www.ititropicals.com 609-987-0550 16, 26

KRONES www.krones.com 77

Martin Brothers, Inc. www.teammartinbrothers.com 800-652-2532 14

Matsutani ADM www.fibersol2.com 217-451-4377 60, 61

MilkPEP www.milkpep.org 202-737-0153 35

New Logic Research Inc. www.vsep.com/yogurt 510-655-7305 85

Oystar USA www.oystarusa.com 732-343-7600 37

Remco www.remcoproducts.com 317-876-9856 57

Richmond Baking www.richmondbaking.com 765-962-8535 59

Robert Reiser & Co. www.reiser.com 781-821-1290 27

Robertet Flavors, Inc. www.robertet.com 732-981-8300 69

Rocket Products, Inc. www.rocketproducts.com 800-325-9567 71

S&D Coffee www.sndflavors.com 800-933-2210 17, 19

Sealed Air Cryovac www.cryovac.com 800-391-5645 43

SPX Flow Technology Segment www.spx.com 800-252-5200 IBC

Sudmo North America, Inc. www.sudmona.com 815-639-0322 45

Synerlink www.synerlink-engineering.com 763-390-0891 51

T.D. Sawvel Co. Inc. www.tdsawvel.com 877-488-1816 8

Tate & Lyle www.purefruit.com 800-526-5728 55

*Tetra Pak Hoyer www.tetrapakprocessing.com/hoyer 262-249-7400 32a-b*

Tharp and Young on Ice Cream www.onicecream.com 610-975-4424 24

TIC Gums www.ticgums.com 800-899-3953 63

Tree Top Fruit Ingredients www.treetopingredients.com 800-367-6571 65

Urschel Laboratories, Inc. www.urschel.com 219-464-4811 39

Weber Scientific www.weberscientific.com 800-328-8378 15

*Indicates Regional Advertising


INSIDE PERSPECTIVE by Alison L. Krebs

While yogurt, cheese andexport sales have been a boon for the U.S. dairy industry, allowing milk pro-

duction to expand nearly 18% in the past decade, fluid milk sales have continued along a troubled trail. From 1975 to 2010, annual per capita fluid milk consumption dropped from 28.6 to 20.9 gallons. And the trend hasn’t let up as overall per capita fluid sales declined another 1.6 and 1.8% in 2011 and 2012, respectively, and experienced their fourth consecutive month of year-on-year declines in February 2013.

Indeed, despite a 43% increase in U.S. population between 1975 and 2010, total milk consumption increased just 4%. In 2012, a mere 26.5% of milk production was marketed through fluid products ver-sus 46% in 1975.

It’s been a painful time for fluid milk, but the industry is now moving beyond the gallon jug to address changing con-sumer needs more aggressively, primar-ily through the introduction of low vol-ume, niche or branded products. While these products may not seem to be as appealing to producers who are keen to maximize volume, many have shown promise in their ability to compete against other beverages and some have the added benefit of providing proces-sors with higher margins.

Improvements on the processing side have enabled product innovation through increased shelf life and shelf stability. According to Darigold CEO Jim Wegner, extended shelf life (ESL) products, which have a shelf life of 90 to 120 days, allow slow turn or niche dairy products to be more viable in the marketplace.

Calcium-enriched, lactose-reduced, creamy fat free and probiotic milk can all com-mand shelf space to meet specific con-sumer needs with less chance of spoilage. Many ESL products are specializing even further, adding supplements such as addi-tional calcium, omega-3s and plant sterols to cater to health-conscious consumers.

To compensate for slight changes in taste due to higher temperature pasteuri-zation, many producers of aseptic (ster-ile) milk have turned their attention to

flavored milk products. In fact, fluid milk sales in these categories are actually grow-ing because of these and other specialty-type products, even though they currently make up a small percentage of overall sales.

As might be expected, chocolate has been at the core of this upturn. Aseptic products are also meeting consumer demands for convenient, single-serve products, which are of particular interest to club or mass retailers, such as Sam’s Club or Costco.

Creative processors are also exploit-ing milk’s high protein content to devel-

op new meal replacement and post-workout refuel products. In the refuel category, Coca-Cola recently took on the distribution of Fair Oaks Farm Brand’s aseptic product Core Power, bringing the beverage giant into the dairy industry. PepsiCo also distrib-utes ready-to-drink Muscle Milk, which contains dairy ingredients. In the meal replacement category, Kellogg’s recently rolled out its Breakfast to Go product — chocolate, strawberry and vanilla shakes that nutritionally equate to a bowl of cereal with milk.

The organic dairy market also has seen the value of innovation. WhiteWave Foods is increasingly known for its Horizon single-serve, aseptic flavored and white milk products. Horizon President Mike Ferry suggests one of the main benefits of these milk boxes is con-venience. “They are easy to grab on the run and are shelf stable, so they are great for lunch boxes and make great snacks.”

A key takeaway is that innovative products with clear consumer benefits are finding success. While it appears that product innovation in the dairy industry may be finding a foothold, processors need to continue to push the innovation envelope as fluid milk con-tinues its battle for share in the crowded beverage market. �

Alison Krebs is director in the Knowledge Exchange Division at CoBank, a $95 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states.

Dairy Foods seeks essays from dairy proces-sors. Contact [email protected].

Beyond the gallon jugIn the face of declining sales of conventional white milk, dairy processors look

to value-added beverages. Calcium-enriched, lactose-reduced, creamy fat-free

and probiotic milk can all command shelf space to meet specific consumer

needs. ESL processing allows these slow-turn products to be viable.

Aseptic products are also meeting consumer

demands for convenient, single-serve products,

which are of particular interest to club stores

and mass retailers.

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