Issue 34 | Dairy Innovation

SPECIAL REPORT

Global dairy report

PLUS worldwide product innovation, industry and ingredients news

DAIRYInnovAtIon

Los Andes partners with Elopak to drive

fresh milk market in Venezuela

Lacteos Los Andes Operations Manager

Rogelio Gutierre

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Issue 34 - December 2010 · January 2011www.foodbev.com/dairy

FOCUS EVENT REVIEW

Top 10 dairy companies World Dairy Summit

© Dairy Innovation 2011. Reproduced with the kind permission of FoodBev Media - www.foodbev.com For details about syndication and licensing please contact the marketing team on 01225 327890.


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6 categories – 24 awards

Open to products launched since September 2009, the awards will be presented at the InnoBev

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3www.foodbev.com/dairy CONTENTSIssue 34 - December 2010 · January 2011

Inside this issue

SPECIAL REPORT

COVER STORYThe editor’s viewDairy Innovation Editor Geoff Platt reflects on a great

World Dairy Summit in New Zealand and on 2010.

InnovationsNew products in the dairy world, from drinking milk through to yogurt, spreads, cheese and ice cream.

Innovation extraHow character merchandising worked for one dairy when it launched Pink Milk.

Dairy businessNews and views from the world of Dairy Innovation.

For regular industry news updates, visit www.foodbev.com/dairy

Innovations plusTwo bonus pages of new products from the dairy world.

UpdateWorld School Milk Day - focusing attention on vital milk programmes.

Event reviewHealth Ingredients Europe provides the ingredients for forthcoming innovation.

Marketing watchRebranding your dairy range; the Yves Boutonnat Trophy; marketing news.

Dairy tech focusDairy Innovation technical news section - at the World Dairy Summit.

Final wordHow the dairy industry can make use of social media.

Marketplace Dairy Innovation products and services guide.

Advertisers’ index.

Global dairy trendsFocusing on dairy product markets.

Lacteos Los AndesWorking with Elopak to increase the consumption of fresh milk in Venezuela.

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FOCUS

Global top 10Kevin Bellamy takes a look at the top ten dairy companies.

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EVENT REVIEw

Discover . . . natural inspirationWorld Dairy Summit 2010 report, from Auckland, New Zealand.

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ENTER NOW

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© Dairy Innovation 2011. Reproduced with the kind permission of FoodBev Media - www.foodbev.com

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4 EDITORIAL www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

The editor’s view

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Every effort is made to verify all information published, but Dairy Innovation cannot accept responsibility for any errors or omissions or for any losses that may arise as a result. Opinions expressed in articles do not necessarily reflect those of FoodBev Media Ltd.Dairy Innovation welcomes contributions for publication. Submissions are accepted on the basis of full assignment of copyright to FoodBev Media Ltd unless otherwise agreed in advance and in writing. We reserve the right to edit items for reasons of space, clarity or legality.

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DAIRYINNOvATION foodbev com

A world of food and drink

‘Discover . . . natural inspiration’ was the theme of the Summit. And there was plenty to inspire those of us who attended: lots of information, mountains of data, reams of thought provoking material, plenty of issues to discuss, countless networking opportunities and a myriad of top class speakers. There was something for everyone at the Summit, with the individual conferences covering subjects right across the dairy industry - dairy farming, science and technology, nutrition and health, ingredients, manufacturing, sustainability and the environment, dairy policy and economics, product integrity, and marketing.

The exhibition, the social events and the technical tours were all of the highest quality.

So thank you New Zealand for a great event.

This issue of Dairy Innovation includes feedback from the World Dairy Summit 2010 - an interview with IDF President Richard Doyle in Dairy business, news and photo gallery in our four page Event Review, a focus

Did you go to the International Dairy Federation World Dairy Summit in Auckland, New Zealand in November? Wasn’t it a great event? Convenor Andy Williams and the

New Zealand organising committee did a wonderful job. They deserved all the plaudits they received. With over 2,000 delegates in attendance and four parallel conferences each day, there were a host of logistics challenges - and an awful lot of scope for things to go wrong. But the organisers and all the back room staff kept on top of it all.

on the winning entry in the Yves Boutonnat Trophy in our Marketing Watch section and a look at some of the companies at the exhibition in Dairy tech. And there is more to come in our next issue, in the New Year.

The World Dairy Summit was a

great event to round off the year

and provided lots of inspiration

as we approach 2011.

2010 - a year in dairy

This last issue of 2010 gives me

the opportunity to look back at

the past year and highlight some

of the headlines that made the

pages of Dairy Innovation.

‘Tipton urges dairy leaders to

unleash the industry’s potential’

was a headline in the first

issue of 2010. In her keynote

speech at Dairy Forum 2010,

International Dairy Foods

Association President and CEO,

Connie Tipton, called for industry

involvement, innovation and

unity as the best ways to combat

a sluggish economy and unleash

the industry’s potential for

growth and success.

Did our dairy leaders unleash the industry’s potential?

In ‘The innovation imperative’, Beneo-Orafti Marketing & Communications Manager Tim Van der Schraelin said there were some new and very exciting challenges for dairy which meant that dairy in the future was not going to be boring. “Dairy manufacturers should explore the niche markets - because that is where margin is generated, generating the money that permits further innovation in the future.”

So was dairy boring? Have you explored those niche markets.

Halfway through the year and the magazine focused on the inaugural IDF Dairy Innovation Awards. These Awards are a partnership between IDF and Dairy Innovation magazine and are designed to celebrate the best of dairy. Writing in the Awards showcase magazine - and in Dairy Innovation magazine - IDF Director General Christian Robert said the Awards were “crucial to better leverage the importance of talented innovation to deliver natural, safe, tasty and healthy food.

“Around the globe there are numerous examples of excellence

- success stories, new trends, best practices, creative initiatives, inspiring ideas - to consolidate the position and foster the expansion of our sector.”

The 2010 Awards were a great celebration of so much that is good in dairy. We hope that the 2011 Awards will surpass that. Watch this space for details.

In August, Tetra Pak President Dennis Jöhnsson wrote: “It’s a dynamic time in the dairy industry . . . ” In October Biovelop AB Managing Director Mark Lawther said: “Dairy companies could probably be more innovative, as there are many untapped areas, such as different target groups and different times of day.”

I have said it before, but I will say it again - this is a great industry to be in, there are many challenges - and many opportunities. Boring it is not. Dynamic it certainly is.

So come on you dairy leaders - unleash the industry’s potential . . .

And have a great 2011.

Geoff Platt (on the right!)

NEWSSend your product and business news to: [email protected]





6 PRODUCT NEWS www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Innovations

Alpenmilch adds pepper and garlic varieties to SalzburgerLand range

The editor’s pick of the latest new products

Austrian dairy company Alpenmilch has launched two new packs of lactose free sliced cheese under its SalzburgerLand label. The two cheeses include a pepper cheese - containing red and green peppers - and a classic Bärlauch cheese containing wild garlic. Both cheeses are available in relockable packaging. Boursin gets a

mini makeoverBoursin Minis, the latest innovation from Bel UK, is redesigning its packaging to bring it into line with European packaging. Featuring an updated Boursin Minis logo and typeface, as well as a brand new taller pot, the company says the new packaging will continue to communicate the product’s indulgence and versatility credentials by making the ‘cooking, sharing salads & more’ messaging more prominent. Boursin Minis were also back on TV in December 2010 with the popular ‘Du Pain, Du Vin, Du more with new Boursin Minis’ creative.

Kammerude Gouda marries art and cheeseKammerude Gouda is a new line of semi-soft cheese from Blaser’s USA, inspired by traditional Wisconsin folk art. Available in 8oz and 1.25lb wheels, the line is available in eight flavours: Plain, Smoked, Dill, Rosemary Garlic, Garlic Basil, Caraway, Fennel and Jalapeño. The attractive packaging features the works of famed Wisconsin folk artist Lavern Kammerude whose paintings capture rural American life in the first half of the 20th century. The underside of each label includes additional information about the artist.

Berglandmilch’s triple cheese offeringAustrian dairy company Berglandmilch has added two new packs of cheese slices to its Schärdinger range. Both packs are lactose free and offer three slices each of three different popular Schärdinger cheeses. One pack includes Gouda and Bergbaron cheeses along with Traungold - described as the gold of Austria’s cheeses. The second pack - in the Die schlanke Linie (reduced fat) range - includes the large-eyed Schärdinger baronesse (13% fat) cheese, Goudette (7% fat) and Schärdinger yogurt cheese. All the cheeses are packed in resealable packs.

Carr Valley Cheddar range celebrates changing seasonsIn the US Carr Valley Cheese has developed a seasonal Cheddar programme to highlight the distinct flavours that emerge in the cheese at different times of the year. As customers become increasingly interested in seasonal ingredients, artisan cheese naturally lends itself to this trend. Each of the four Cheddars is designed to be merchandised within the season it represents. Irish Valley Cheddar is produced in the early spring when fresh grass is just beginning to sprout and four leaf clover is at its best. Field of Flowers Cheddar is made with early summer milk, which is laden with beta carotene and floral notes. Autumn Harvest Cheddar is produced in the cooler temperatures of late summer, with cows enjoying fallen apples and plentiful pastures. And finally as the holidays approach, Wisconsin cows - in the comfort of their barns - feast on preserved summer hay with a concentrated flavour and produce milk for Winter Solstice Cheddar.





7PRODUCT NEWSwww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Innovations

Pilgrims Choice aims to drive category growthOne of the UK’s leading Cheddar brands - Pilgrims Choice - has launched a new and innovative speciality blended cheese range. North Downs Dairy, the company that owns

the brand, says the ‘Pilgrims Choice Speciality Collection’ looks to change perceptions and re-energise the cheese category, through educating and encouraging consumers

to enjoy a little indulgence everyday. The new range unites traditional favourites and offers ‘four mouth-watering flavours’ - Wensleydale with Lemon & Lime, Wensleydale

with Cranberries, Smokey Cheddar and Red Leicester and Onion Crunch. The cheeses are packaged in stylish 200g re-closable packs designed to ‘stand-out’ on shelf.

Liederkranz makes triumphant returnAfter a 25-year hiatus, Liederkranz - an American-made, surface-ripened snack cheese with a distinctly strong aroma and unique, full-bodied flavour - is returning to store shelves to the delight of its passionate fan base. DCI Cheese has revived the cheese with the help of Wisconsin Master Cheesemaker Myron Olson of Chalet Cheese Co-operative. Liederkranz is a cousin to Germany’s Limburger cheese. Its name, translated from German, means ‘wreath of song’. Made in a small, rectangular shape, it has an edible, golden yellow rind and a pale ivory interior with a heavy, honey-like consistency. As the cheese matures, the rind and interior take on deeper colours and the flavour and the aroma become stronger. Liederkranz pairs well with dark bread and dark beer. Prior to this reintroduction, Liederkranz was last manufactured in 1985.






InnovationsNew dairy products from Japan

This report on innovations from Japan is brought to you by our partners Steve Galloway, founder of Exigo Marketing and Yoshihiko Hani, President of Beverage Japan magazine. Exigo Marketing is an international consultancy based in the UK, SE Asia and Japan, specialising in strategic marketing, innovation and market entry. It has particular expertise helping food and drink companies in Asian and Japanese markets.

New in its ongoing World Kitchen Series of traditional cooking recipe-inspired drinks, World Kitchen Yasashi Niringo no Apple Moa from Kirin Beverage is based on a Danish stewed apple dish. The drink is available in a 200ml slim paper carton and 320ml PET bottle and is made of skimmed milk powder, stewed apples, lemon juice and sugar beet.

Also from Kirin is Tropicana Fruit Sweet Orange no Maroyaka Rare Cheese Fumi. The second in its series of dessert-flavoured fruit

drinks, it has an orange juice base, with added milk and lactic acid bacteria, to create the flavour of Japanese rare cheese cake. It is packed in a 400g aluminium bottle can from Universal Seikan.

Collagen White from Suntory is a white peach and yogurt flavoured drink. Part of

Suntory’s ‘Life Partner’ series of health and isotonic beverages, it has 1000mg collagen, vitamin B 61mg and 11mg Niacin, 1% peach juice per bottle, and contains skimmed milk powder and 20kcal per 100ml. The 500ml PET bottle is from Yoshino Kogyosho.

Calpis has released several new products. Among them is Fruits Calpis Kanjuku Budou and Calpis - a dairy drink made from 1% domestic grape juice plus regular Calpis. With 18kcal per 100ml it comes in 3 PET sizes: 280ml, 500ml and 1.5l. Calpis Soda Grape Zero continues the company’s calorie zero series from last year. A carbonated dairy drink with 1% grape juice, it is packaged in a 500ml PET from Yoshino

Kogyosho. Milk to Calpis Renyu Blend from Calpis is a mix of Calpis, milk and condensed

milk. Available in a 200ml chilled plastic cup it

Far left: Yoshihiko Hani, Beverage Japan

Left: Steve Galloway, Exigo Marketing

contains 126kcal and has a chilled shelf life of 90 days.

Yasai Shibori Kabocha Purin from Kagome is new in its series of premium vegetable dessert drinks. Containing strained pumpkin, milk and caramel syrup, it has the taste of Japanese caramel purin dessert and is packed in a 200ml slim LL paper carton.

Nihon Milk Community has reduced the pack sizes of a number of its fruit juices and dairy drinks to 200ml or less to address Japan’s growing senior consumer daily dosing market. Happy Vege is a new apple flavoured drinking yogurt containing 25% vegetable and fruit juice from nine different green and orange vegetables plus four fruits. It comes in a 190g carton and has a shelf life of 18 days chilled.

Latte Blend JuRokuCha from Asahi is a new product under the

popular JuRokuCha tea brand. It uses the original blend tea from the existing Caffeine Zero product with added milk and sugar, and demonstrates Asahi’s efforts to broaden the core brand through new product varieties. As with the brand’s other varieties, Latte Blend is also targeted primarily at females and is to be drunk hot. It is packed in a 275ml heat resistant round shaped PET bottle from Toyo Seikan.

Beverage Japan is represented in Europe and Asia by Exigo Marketing - www.exigomarketing.com.

For more information, contact: [email protected]

Meggle butter designed for bakery rangeGerman dairy company Meggle has developed a new herb butter for its bakery range. After a six month trial the butter is now used as a filling in its Rustikal Baguette.

Fru fru offers versatile snacking optionAustria’s Nöm Dairy has launched a 250g pot of its fru fru pur creamy mild sour milk product. The company says it is perfect for everyone and can be eaten at any time. Mixed with honey, nuts or cookies - it makes a versatile snack.






InnovationsChristmas themes introduced to boost dairy sales

In the UK, leading cheese brand Cathedral City, from Dairy Crest, has rolled out brand new seasonal packs for winter 2010. The new packs will replace selected Cathedral City packs for six weeks in the run up to the

Christmas period and are the first seasonal pack design for the brand. The packs will feature a winter scene to evoke a festive feeling designed to resonate with retail cheese buyers and consumers.

In Germany Rudi and his friends are back on Müller Dairy yogurts. The cheeky reindeer features on the latest Corner of the Month yogurts with creamy white vanilla yogurt and reindeer chocolate coated cereals and a prune and cinnamon syrup. The yogurts are also offered in a six pack with ten free Rudi stickers in each pack.

Meanwhile in the UK, Müller Corner is also bringing some festive sparkle to the yogurt fixture with the launch of a Limited Edition duo of Christmas-themed Corner twin pots - both containing chocolate-coated reindeer-shaped biscuits. These seasonal additions are available in Christmas-wrapped four packs. Featuring reindeers gambolling in a snow-scene setting, each flow-wrapped pack contains 4x150g twin pots of either Strawberry or Vanilla flavour yogurt, alongside the novelty-shaped biscuits.

German dairy company Weihenstephan has put customers in the festive spirit by adding to a wintry scene to its premium quality table butter - launched in time for Christmas.

Milk Link, has unveiled a new limited edition 500g Christmas pack of its award winning Tickler extra mature Cheddar. The new range addition builds on the success of the recently introduced 350g Tickler pack, and continued popularity of the 200g size pack. Milk Link Marketing Director Hamish Renton (who features in Innovation Extra - page 11) said: “We are delighted to be launching this very special limited edition 500g pack of Tickler for families to enjoy over the Christmas period. It’s that much bigger than our usual pack sizes - so perfect for those people expecting a few extra house guests with discerning tastes.”

Tis the season for Turkey Hill Egg NogUS ice cream and frozen desserts maker Turkey Hill has introduced its range of Egg Nog products in time for the Christmas season. The range includes Egg Nog

ice cream and Turkey Hill Egg Nog Drink. The premium rich egg nog ice cream is made with rum flavouring and spicy nutmeg. The Egg Nog drink is made from pure

cream, fresh milk and a touch of nutmeg, and is available in half gallon, quart and pint bottles. And this year the company has added a Light Vanilla Nog drink to the range.






Innovations

Blue Bell puts sweet twist on Pumpkin ice creamAmong the latest creations from Blue Bell Creameries in the US is Spiced Pumpkin Pecan ice cream - sweetened and spiced to perfection. It is a spiced pumpkin ice cream combined with tasty sugar-coated pecans and a rich cinnamon-honey-praline sauce. Meanwhile a second new flavour is Caramel Turtle Cheesecake Ice Cream. This is a cheesecake ice cream with chocolate-coated caramel turtles, roasted pecans, and cheesecake pieces with a chocolate cookie crust all surrounded by a smooth caramel sauce.Dr Oetker pudding goes green

German company Dr Oetker has expanded its successful Paula pudding assortment with the addition of a Wackel Pudding with green jelly ‘cow’ spots. The creamy pudding with vanilla taste is available in a 4x125g pack.

New Christmas range launched by Loseley Dairy Ice CreamA new sophisticated range of luxury ice cream flavours combining festive after dinner indulgences, has been launched by Loseley Dairy Ice Cream. Aimed at discerning adults, the limited edition range includes a choice of cognac, whisky, or Irish cream, and even a special mince pie flavour, offering a distinctive premium ice cream experience. Produced in 500ml tubs, the alcohol-infused desserts offer a full flavour sensation but contain less than 3% alcohol each.

Fruity, fresh and delicious twice - Müller’s two new double-deckersMüller has added two new flavours to its Doppel-Decker pudding range. These include Mango & Vanilla and Cherry & Vanilla varities. The new products are offered in 4x125g cups which feature Peanuts cartoon characters Snoopy the dog and his feathered friend Woodstock.

Weight Watchers targets females with low fat custardBuilding on their success in the cream category, Weight Watchers has introduced a new low fat custard, manufactured under license by Dairy Crest. The launch was targeted at existing UK Weight Watchers members and health conscious consumers, predominantly female 18-years plus. The custard is made with double cream and Madagascan vanilla extract.





11EXTRAwww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Innovation extra

Why did you choose to go down the character merchandising route?

When it comes to new product development and licensing, at the heart of our strategy is the accurate targeting of a given demographic, and identifying gaps and hence, opportunities.

Last year we spotted that there was very little on offer for children and pre-teens (under 14s) in the milkshake category. There are quite a few flavoured milks and milkshakes targeted at teens and adults, not least some which Milk Link produces under licence - Mars Galaxy, for example - but there is a gap in the market for younger children.

The team at Milk Link began

looking at options for creating

a new milk drink which would

really shake up the space, and

have genuine shelf appeal

for both children and their

gatekeepers, mums.

The Charlie and Lola brand

provided just that opportunity

for us to harness. It’s a BAFTA

(British Academy of Film and

Television Arts) award-winning

TV series and range of books,

aimed at two to eight year-olds,

and one of the biggest licensing

success stories of the decade,

across clothing, stationery

and homewares.

What influenced your choice of characters?

Ultimately the fit between character and product is the most important factor when it comes to working with licensed characters - it’s not simply about slapping a name on the label.

As any fans of Charlie and Lola will know, pink milk is at the heart of the character’s story - “Lola loves pink milk” is one of the main catchphrases in the books and TV series. Through our ‘pink milk’ we’ve therefore been able to bring to reality something which was already integral to the character’s brand. We think it will be genuinely exciting for fans of the series!

Moreover, Charlie and Lola had already been very successfully licensed as a character into clothing and homewares sectors - so we also had a proven track record and awareness level to base our product launch on. It’s been a great opportunity for us to be the first to take the brand into the dairy drinks market.

Can you give us an idea of what is involved in getting the necessary licences? The discussions, meetings, form filling, legal side and so on.

For a successful licensing

relationship to work, it’s

essential to treat the licensor as

the customer from day one. It’s

about creating a collaborative

working partnership, respecting

their brand and making the

whole process as straightforward

as possible. It is your job to help

them make the conceptual leap

from licence to product, sell to

them the commercial benefits -

quantify the ‘size of the prize’ if

you like - and of course maintain

the reputation of their brand

throughout.

It is around a six month process

from conception to product

launch, on average, and

throughout that period a number

of meetings between relevant

parties on both sides are needed

to update and share relevant

information. We find this works

best by nominating a main point

of contact from each business

to work closely with each other

over the course of the project.

In the case of Charlie and

Lola, not only is there a brand

team based at the BBC, but

we also worked with the close

input of Lauren Child, the

author and illustrator. As with

all her licences, she was keen

to be involved through the

development process, including

casting her hugely creative eye

over the carton design. We think

the end result is both true to

the brand and very attractive

to consumers!

Did you do some test marketing?

Yes, we carefully tested the product and its positioning to ensure it fitted with the wants and needs of the target market - this included a series of consumer groups and quantitative modelling. Mums in particular are bombarded with different products and services aimed at their children - we wanted to make sure we got everything right in terms of product, packaging and marketing. We also ensured

we adhered to the relevant ‘marketing to children’ guidelines as part of the product development process.

Has it been worth it?

Charlie and Lola Pink Milk has been going down really well in stores. We’ve been thrilled to see that the product has actually been enticing new consumers to the category - since the beginning of September, Charlie and Lola Pink Milk has attracted over 3,100 new customers to the category, demonstrating that our audience targeting is proving extremely successful. Sales data shows a 207% Unit Sales Increase in Sainsbury’s, with customer numbers up by 268% (according to LMG). Charlie and Lola Pink Milk is also performing well in its other launch listings at Morrisons, Budgens and Booths, supported with in store activity and press advertising.

Food and drink manufacturers have often used the power of celebrities and cartoon characters to help them sell their

products. Milk and dairy product manufacturers have also made use of this marketing tool by featuring sports stars, film and TV stars, models, musicians and cartoon characters either on the package or as part of the whole marketing campaign.

Recently UK co-operative Milk Link featured a popular BBC children’s TV series - Charlie and Lola - on a new product launch. Dairy Innovation Editor Geoff Platt spoke to Milk Link Marketing Director Hamish Renton about the Pink Milk project.

Character merchandising

Hamish Renton





12 NEWS www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Dairy businessIDF update

Providing leadership to dairy and beyond

Richard Doyle was elected President of the International Dairy Federation (IDF) at the IDF World Dairy Summit in Mexico City at the end of 2008. Doyle, who is Executive Director of Dairy Farmers

of Canada, took over the Presidency at a time of change and challenge for the worldwide dairy industry.

Dairy Innovation Editor Geoff Platt caught up with the IDF President during the recent hectic World Dairy Summit in Auckland, New Zealand.

Richard Doyle speaks at the IDF Dairy Innovation Awards 2010

You are now half way through your Presidency. How would you say the first two years have been?

I think they have been exciting really because IDF has been going through a period of transition. We have been modernising the structure, and we have this vision which - as you know - we call SWIFT. We are trying to get the message over to the membership that we are modern. Communication has been increasing, we are making much more use of the media, and we are making sure that the material we have is communicated, not only to our members but also to the public and to the other stakeholders in the industry. So this is all exciting.

Sustainability has been a key focus in the last two years. We have a new strategy on climate change and sustainability in the broader sense. We became really aware that we needed to work with other organisations, work altogether and show a leadership role at IDF because of the expertise we have in our technical and science base. It has worked extremely well and I am extremely pleased with our record so far. We are not done, we are far from being done. But if you look at the progress we have made over the last two years its quite exciting because I think we are moving in the right direction. The comments we have received here when you present the new vision, when you present the achievements we have accomplished over the past year or so, has been extremely gratifying. People

like the direction, they like what they see and the support for the organisation has increased significantly.

So I can only be very pleased.

So has the role been what you expected?

Yes and no, interestingly enough.

When I ran for the Presidency I said that I would try and focus on governance, which I did. The new vision includes a certain amount of restructuring. IDF has moved from structure of a Council to a General Assembly with a Board. We have had a couple of years with that, but we are still in transition. We need to make adjustments. But I have a Board that works with me and has been extremely supportive. All through this, we have had a major consensus and we have staff that have been extremely dedicated in delivering the direction the Board was giving them. They are extremely hard working - if you look at what has been accomplished with such a small staff, it is amazing. Again there is more to be done, and that’s great.

I have structured myself so I can

devote a quarter of my time to

IDF, working with my staff and

my organisation back home (in

Canada) to allow me to do this. I

am very fortunate to be able to

do this and I think my estimate

of the time allocation has been

pretty accurate - so in that

respect it has worked extremely

well.

This year Chile has joined IDF. It must be particularly pleasing when that happens.

Yes, I am extremely pleased with that, extremely pleased to have new members. Only a few years ago we had barely above 50% of global milk production - now we are getting about 87%. Chile has joined as a full member and now Korea, who was an associate member, has decided to come on board. I had the chance to be in Korea earlier this year. They are an extremely strong supporter and we are going to have a seminar down there next spring. This is very exciting.

When you see what we are showing here at this Summit, I agree with a lot of people who have never been to an IDF Summit before and they say how impressed they are. They had no idea of the wide range of expertise that existed and the source of information that is so abundant.

So how would you sum up the Summit?

This is a great Summit. It is a great Summit, not just because of the location, but the quality of

the speakers has been extremely high. There has been some innovation in terms of the way the Leader’s Forum has been designed - which everybody has found absolutely fantastic.

We have incorporated the IDF forum within the Summit as well. I think this is an extremely good idea because we were lacking a little bit from giving the participants at the Summit any news about IDF. The first session was really saying here is what IDF is all about - so it is becoming much more an IDF World Dairy Summit. So that kind of innovation is extremely good.

Considering we have had 2,200 people here, the logistics of this Summit was absolutely fabulous - things like staggering when the sessions were finishing so that people were able to stagger their lunch and not have a long wait, for example. These are just small details - nitty gritty details - but they show you how perfect the organisation has been. The organisers did a fantastic job at the Gala Dinner. Everybody





13NEWSwww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Stretch sleeves, the recycling-friendly decoration of choice

CCL Label Auto-SleeveWerner Heissenberg Str. 6A 9100 VoelkermarktAustria

www.ccl-label.com/ voelkermarkt

+43 42 32 49 83

was extremely impressed, it was

extremely well done considering

the amount of people that were

there.

Everybody can go back home

- not only full of good new ideas

and knowledge they can transfer

back home, but also with a good

feeling of the reception they got

in New Zealand and how much

they enjoyed their stay.

So - the next two years - what are the key challenges?

Well, from my perspective, I think

we need to continue the focus

on governance, continuing the

transition to this much more

modern set up. In January we

are hiring a full time member of

staff working on sustainability

and production. I think that will

rectify a weakness.

We have agreement and support

from our partners in the Global

Dairy Agenda for IDF to actually

provide leadership. We have

already done this with the

website, for example. IDF staff

keep this up to date, working

with a group of participants

from the other organisations

in terms of content and so on. I

am quite excited by this because

it is something new for IDF to

play that kind of leadership

role - it is not just going to be

working at IDF activities but

working at co-ordinating a series

of organisations that have an

interest in those issues.

It is really a sharing of resources

and expertise which I really

believe is part of the change of

IDF in terms of the role it needs

to play for the global industry

Finally - are you looking forward to the future?

Yes, I’m looking forward to the future. I’ve got two years left as President and I think it will take two years to complete what I want to do in terms of the infrastructure and the governance. I hope that the kind of speed which we moved over the last two years will continue. I have no doubt that it will because of the enthusiasm of everybody with these changes.

There was nothing wrong with the old IDF, we just needed to show that we are really trying to be THE source of technical information and scientific information and also represent the industry appropriately. When you look at the level of representation we have - not just in CODEX, but with

the World Health Organisation,

for example, the work we are

doing in collaboration with OIE

and with ISO and so on - all of this

representation and co-operation

has been extremely good because

these organisations like the work

IDF is doing. The experts of IDF

have contributed significantly and

I would say that there is no other

organisation, that I am aware of

in agriculture, where you have

this type of leadership taken in an

organisation of all stake holders

working together so much.

I think really it is not just IDF but

it is the dairy industry worldwide

that its really leading in agriculture

and we use our networking and

resources to the benefit and the

growth of the whole industry.

That is our strength and we

need to continue that.





14 www.foodbev.com/dairyCOver stOryIssue 34 - December 2010 · January 2011

“Of the remaining milk, 15% is fresh milk and 2% dairy beverages. Of the total fresh milk, only 4% of this is UHT milk and 96% is pasteurised.”

So it is very much an ambient distribution market for powdered milk, with a fresh and refrigerated distribution system for cheese and liquid milk.

“Los Andes sells 1,000 tonnes of whole milk powder per month in the market,” explained Gutierrez. The company is currently processing around 1,150,000 litres of daily beverages per day - 26% producing liquid milk and the rest juices and dairy beverages, drinkable yogurt, rice products with milk, whey (salted liquid whey in gable top is served as a condiment for food spicing), and some cheese, along with spoonable and set yogurts. “We are also developing some dairy desserts which we are looking to launch into the market.”

The market is dominated by daily purchase habits, where consumers tend to buy staple products of milk, bread, cheese, juice and butter from local corner stores and bakeries rather than the bulk supermarket shopping, common in Europe. In total Los Andes has 45,000 points of sale with over 40% of the dairy market

in Venezuela. Distribution in Venezuela (like other Latin America countries) is through a “distribution intensive” model with daily sales deliveries of milk and juice products, as well as other dairy products (butter, cheese) to store owners who buy direct from the delivery truck according to the demographics of the area. The growth of consumption presents logistics

The government’s drive to increase fresh milk comes at a time when over 60% of consumption is from bulk imported powdered milk. With the exception of Costa Rica and Uruguay, the rest of Latin American countries are net Importers of powdered milk. According to the Association of Dairy Producers, in 2008 milk consumption was approximately 2.4 billion litres in Venezuela, with 95 litres per person.

Gutierrez said: “Over half of the total Venezuelan consumption of dairy is still from powdered milk, reconstituted at home. Venezuela still imports a considerable amount of whole milk powder from the international market. A quarter (25%) of the remaining volume of milk is consumed as cheese. This is mainly non aged fresh cheese and is part of the daily diet with cheese being served with every meal.

In March 2008, the Venezuelan Government

purchased Lacteos Los Andes - until then a

private dairy company - and has been using it

as an important part of its plan to increase the

consumption of fresh milk and the nutrition

level across all age groups of the Venezuelan

population.

Dairy Innovation Editor Geoff Platt spoke to

Lacteos Los Andes Operations Manager Rogelio

Gutierrez to find out more about the company

and the local market.

Lacteos Los Andes

Rogelio Gutierrez

We entered a partnership with gable top carton system provider elopak in 2008

challenges with the need for more refrigerated trucks and investment in cold chain filling technology, but it also helps protect market share through control of the cold chain distribution.

Demand for dairy

Rogelio Gutierrez admits that they have not yet been able to meet the demand of the market as far as dairy is concerned. “With powdered milk being the bulk of the market, there are a





15www.foodbev.com/dairy COver stOryIssue 34 - December 2010 · January 2011

lot of opportunities for growth with pasteurised milk and even for some reconstituted blends and formulas such as fermented milks and drinkable yogurts.”

He explained that although the dairy was growing at an annual rate of around 10% for the past three years, they were not catching up with demand - indicating that demand is growing at 8 -10%. This is not necessarily an increase in per person consumption but a change in consumer habits, with consumers switching from powdered milk to pasteurised milk. And UHT was growing as well.

Los Andes entered into a partnership with gable top carton system provider Elopak in December 2008 and began the supply of cartons in February 2009. Elopak VP for Caribbean and South America Claudio Sidney explained the partnership is focused on two projects.

“Since it became state owned in March 2008, Los Andes has become responsible for two Mega dairies located in Central Occident areas of Venezuela as part of the government’s goal to increase production and distribution of farm fresh milk. Historically there is a consumer preference of gable top cartons for fresh products and therefore Los Andes has specified an Elopak Pure-Pak filling machine for the larger sites, with the first to be installed by January 2011.”

A project to mechanise and customise the materials handling at Los Andes’ main dairy in Barquisimeto is also in development. “In addition to increasing the efficiency of the dairy, one of the primary aims is to improve the ergonomic working conditions. Ongoing now for one year through different stages of evaluations, the joint project team will be ready to move forward over the next two years with what will be a highly mechanised operation from reception of milk to

secondary packaging,” continued Sidney.

Innovation and new product development

Los Andes is a key innovator in Venezuela with products ranging from white milk, flavoured milk, traditional products such as rice milk (chicha), whey products used in cooking and drinkable yogurts.

They were the first dairy to produce 4C - a 4-cereal blend of breakfast dairy beverages and also produce a range of juices and nectars. Los Andes was a pioneer of the half-gallon gable top format in Venezuela, geared towards supermarket chains. The dairy currently delivers over 360 million cartons a year. “When all of the filling technology and materials handling systems are completed and fully operational, Los Andes will be producing through a more efficient, flexible and advanced filling and production process,” added Elopak’s Claudio Sidney.

On the subject of new product development, Gutierrez added: “Lacteos Los Andes has done, and continues to do, research and development with different product lines based on how market trends are evolving. The problem we have had in bringing these products into the market place so far is because of the pressure of meeting unsatisfied demand for existing products. This has put pressure on the production operations involved in meeting that demand from the existing product lines.”

Obviously this means the company has to increase production capacity, which is where the Elopak partnership

will play an important role. Los Andes has two factories today and they are looking at a third factory in the Western part of the country, so they will then have one factory in each area of the country - in addition to the satellite dairies. This will help them rationalise their production so that they can introduce some of these products - UHT milks, dairy desserts, more yogurt - into the system to meet some of that unsatisfied demand.

The company is also seeing the growth of probiotics, which for them is very important because in Venezuela there is a fairly high incidence of cardio vascular accidents due to high cholesterol levels.

“Given the intensive distribution system to supply all these corner stores, they have the need to supply also the dairy and the juice, they have introduced some other beverages that they believe tomorrow could become functional beverages by incorporating some other protein elements.

There is a big growth of iced teas in Elopak’s Pure-Pak cartons with lemon and passion fruit. There is a growth in tropical fruit blends and they have introduced dairy beverages based on oat and milk, and milk and cereal as thirst

quenchers - which is similar to the Horchata that you see in Spain.

Changing distributionThe premium sector of the Venezuelan dairy market is very small and is limited to just the east part of the capital Caracas. The rest has a fairly homogenised consumption pattern in which yogurt has grown right across the country. Whatever is successful in that demographic area will spread through the rest of the country if there are the proper distribution channels, so it is like a test area.

Rogelio Gutierrez explained: “Fifteen years ago, 80% of the drinkable yogurt consumed in Venezuela was consumed in the Central part of Venezuela - 7 million people out of a total population of 30 million. Now that has spread and you can find it in every single store. So that is how we see some of those elements developing - because there is an understanding that the probiotics in some of these elements are important to the overall population because of health concerns. It is a fine balance between developing premium innovations and protecting your brand and mass production for all consumers.”

A selection of Los Andes non-dairy range

Elopak Pure-Pak filling machine





Dairy news and opinion

www.foodbev.com/dairy

FoodBev comA world of food and drink

17special reportwww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Global dairy trends

As we come to the end of 2010, we take a look at

what has been happening in dairy over the past

year - focusing particularly on dairy products.

Zenith International Senior Consultant Natasha

Maiseyeva and Market Analyst Laura Knight

have been taking a look at Global dairy trends

and provide us with an insight into what has

been happening in four categories: Milk, Yogurt

and Yogurt Drinks, Cheese and Dairy Desserts.

end of year report

Laura KnightNatasha Maiseyava

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click here to subscribe


18 special report www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Global dairy trends

enriched with calcium or are for cardiovascular health. Products enriched with calcium account for over 15% of the total milk market in Spain. Such products offer a quick solution for those consumers who do not cover the daily intake of calcium through their daily diet. Leche Pascual’s Calcio milk is a calcium enriched UHT milk offering approximately a third more calcium and milk nutrients than regular milk.

Weight management, satiety, energy levels and general well-being remain important in liquid dairy product development around the world. Female health and weight management milk beverages continue to present new variants. Berglandmilch

of Austria has launched Schärdinger Die Schlanke Linie Schokomilch - a low fat lactose-free flavoured milk line. 100g of this slim line product delivers only 47 calories. In an effort to provide women who are or want to become pregnant with additional nutrition, Central Lechera Asturiana of Spain has launched an enriched milk under Premamá brand. The product provides nutrients necessary during pregnancy for the proper development of the foetus, as well as supporting women’s health.

Growing middle classes in developing countries such as India, China and Brazil will enable more consumers to

afford value-added products.

end of year report

MilkThe global economic downfall had an impact on every aspect of the dairy business, including production, consumption and prices. Stagnation in world dairy production in the first half of 2009 was followed by a strong recovery in the second half of the year, which continued into 2010. Despite the downturn, the dairy industry has seen growth of around 2% in the last few years across the main sectors. Steady growth in liquid dairy consumption is expected to continue worldwide - rising at an estimated 2% annually from 2010 until 2012. Asia, in particular, will account for the majority of the growth in milk consumption beyond 2010.

Health and wellness continue to be high on the agenda and consumers are increasingly looking to take a proactive approach to health. The dairy industry challenges and opportunities are driven by population and income growth and changes in consumer dietary requirements. Despite the changes in consumer preferences, it is certain that milk will continue to play a central role as a staple product in diets across the globe. The overall global liquid milk consumption has risen by 3.7% over the course of 2010 to reach 184 billion litres.

Changing consumer needs and requirements, although varied from country to country, present interesting opportunities for

the dairy industry to innovate and diversify their product portfolios. The functional dairy market was previously characterised

by the daily-dose probiotic shot - a trend that stems from the commercialisation of Yakult in the Japanese market in the 1950s - and now sees its category boundaries constantly stretched. Innovation has been key to sustaining demand and value-added milk drinks have seen some active NPD during the course of 2010.

Functional dairy products, traditionally concentrating on women and children, are increasingly expanding their range to cater for the

steady growth in liquid dairy consumption is expected to continue worldwide

ageing population. In Mexico, 40ytantos is a fortified milk positioned as a preventative health product for over 40s. Amongst other benefits, 40ytantos is enriched with Omega-3 to aid heart health and antioxidants to fight premature ageing. Liquid milk products with added functionality, such as those aimed at avoiding premature ageing and aiding bone health, target adults of all ages. For example, the recent launch of Valio Maito Plus - a new extra-nutritious fat free milk that enhances muscle growth and helps maintain bone structure. It contains more key milk nutrients than an ordinary fat-free milk with twice the amount of Vitamin D and 50% more protein and calcium.

A quick solution

In Spain, the most common functional dairy products are

Zenith: global coverage and expertise

Zenith International produces a wide range of research reports to assist general managers, marketers, product developers, suppliers and others associated with the food and drink industry understand and interpret complex markets.

The Market Intelligence Department has a dedicated team of research analysts that continuously track market developments. The team provides global coverage and expertise in a diverse range of markets, from established sectors to emerging niches.

Zenith’s regular functionaldrinks newsletter covers functional dairy.

For more details contact Zenith International: [email protected]






High levels of marketing investment

In several markets, the yogurt category has seen high levels of marketing investment as manufacturers attempt to persuade consumers to choose their brands in the increasingly crowded market. Yogurt and fromage frais has the largest spend on advertising within the dairy sector, with £46.3 million spend in 2009/10, accounting for over 40% of total advertising spend on dairy products.

Private labels have found it hard to compete with brands in the UK, given the high level of marketing investment. In the US, private label’s market share of the yogurt category was flat, with the key players Danone and General Mills holding their own against the private label competition. However, in Canada, brand image has become more important than price, meaning that the yogurt category is almost exclusively occupied by branded products.

Yogurt producers have begun

to embrace the consumer

demand for more ethical

products, with organic dairy

Stonyfield Farm launching a

new environmentally friendly

plant-based yogurt cup, 93%

made from corn-derived

polylactic acid (PLA), and Yeo

Valley introducing pots made

from 80% recycled plastic.

Provenance is also of growing

importance. In France, Groupe

Danone aims for its Stonyfield

France organic yogurt unit

to be 100% supplied by local

dairy farmers by 2015. The

organic yogurt category in

France grew by around 20%

in 2009 despite the economic

downturn, although the pace of

growth was dampened by the

recession.

Yogurts with ‘100% natural

ingredients’ have been a

growing trend in 2010, with

a focus on inherent nutrition

and goodness. This is illustrated

by the growing interest in

Greek yogurt, with both Yoplait

and Dannon launching Greek

yogurt products in the US.

designed for snacking. Again, in the UK market, Müller has launched snack size versions of its yogurt and desserts brands in an attempt to exploit the growing demand for smaller portions and lunchbox products. Danone has done the same with ActiviaSnack Pots.

Other trends seen in the yogurt market in 2010 include products targeted at specific

Yogurts and yogurt drinksIn 2010, yogurts have continued their growth in many markets across the globe. Widely viewed by consumers as a healthy and natural product, yogurts have been able to capitalise on the increasing demand for foods that are both nutritious and tasty.

During the past year, the yogurt category has been able to boost sales by tapping into more usage occasions. For example, Müller Dairy UK launched a larger 450g pot format for its Müllerlight yogurt brand in a bid to boost breakfast consumption. Other manufacturers capitalising on this occasion are Rachel’s, with what it claimed was the UK’s first pouring yogurt in February, and Danone, which followed suite later in the year by launching a range of pouring yogurts under its Activia brand. Both products are intended to be used with cereal, as an alternative to milk, but can also be used in smoothies, to pour over fruit, or for drinking.

Another recent trend seen in the yogurt market is the introduction of products

Manufacturers attempt to persuade consumers to choose their brands in the increasingly crowded market

age groups, such as children’s yogurts, and indulgent yogurts with ‘luxury’ products and brands offering a permissible treat to cash-strapped and health-conscious consumers. However, in some markets, there has been a slight move away from luxury products during the recession, with some evidence of trading down from expensive organic products.

Added value flavoured and

fortified milks have become

increasingly more affordable,

taking share from white

milk. In India, Coca-Cola has

entered the dairy segment

with the launch of its latest

innovation Maaza Milky Delite,

a blend of juicy mangoes and

milk, available in a 200ml

slim Tetra Pak carton and

aimed at teenagers and young

adults. Milks targeting young

consumers are a focus in

many developing countries.

In China dynamic growth was seen in the kids milk category, recognising the nutritional value of milk for growing children.

An increasing number of companies are looking to satisfy consumers who are lactose intolerant. A large number of people globally are perceived to be lactose intolerant or unable to metabolise the sugar found in milk products. Lactose-free liquid dairy products

already have a significant market presence, particularly in Scandinavia – pioneered by Valio. Producers’ ability to supply consumers with all the taste and benefits of dairy products without the digestion problems that may follow, is becoming increasingly important.

During 2010, two key acquisitions in the fresh dairy industry have been witnessed in the Russian market. In June, Danone and Russian

dairy producer OJSC Unimilk agreed to merge their fresh dairy business, with Danone controlling 57.7% and Unimilk the remainder. Danone’s CEO Frank Riboud identified the CIS as the major growth area for the fresh dairy products and expects 10% additional sales in the next three years, following the merger with Unimilk.

Recently, PepsiCo announced plans to buy 66% of the Wimm-Bill-Dann dairy and juice business in Russia.






Greek yogurt combines the

consumer demand for both

health and indulgence.

Consumers appear to be

looking for simplicity in

terms of both ingredients and

packaging, and, for functional

products, simplified claims.

In April, Danone withdrew requests to approve claims about the health benefits of its Actimel and Activia brands. The company said it was waiting for the European Food Safety Authority to clarify how the approval process works. Manufacturers are now

focusing on what the product contains rather than making a direct health claim, for example ‘Activia is a source of calcium and vitamin B12’ and ‘Actimel is a delicious drinking yogurt, containing 10 billion exclusive L. Casei cultures in every bottle’. This does not appear to have dampened demand for probiotic drinks but products with other functionality have yet to make a significant impact in the majority of markets.

Blurring the lines

During the last year, manufacturers have continued to benefit from the demand for healthy and indulgent products by introducing innovative flavours and blurring the lines between yogurts and desserts, with products such as Müller’s Inspired By... range of pudding-based yogurts and Danone’s Shape desserts. The same trend has been witnessed in the US market, evidenced by Yoplait USA’s Splitz, a dessert yogurt aimed at kids.

Busy consumer lifestyles have led to an increase in demand for on-the-go products which has boosted demand for drinking yogurt in many countries. Over the last four years, consumption of yogurt drinks has risen by a compound annual growth rate of 9% compared to 4.5% for spoonable yogurt, according to the Tetra Pak Dairy Index Issue 1. Yogurt drinks offer convenience, and are appealing to consumers as they are both nutritious and tasty. They are suitable for a variety of consumption occasions such as for breakfast, or as a snack.

Recent product introductions in the yogurt drinks category have included many yogurt drinks in pouches, such as Wimm-Bill-Dann’s Zdraivery brand expanding to include a yogurt drink in a screw-

Yogurts and yogurt drinks

Global dairy trends

top pouch, designed for children. During the last year there has been further innovation in flavours and functionality, and demand has grown both in developed and developing countries. In Asia, yogurt drinks were originally thought of as products for children but manufacturers are now targeting adults too. For example, in China, Mengniu offers a yogurt drink with fruit pieces.

During 2010, there were several key acquisitions in the yogurt category that will impact the market during the coming year.

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the focus is on what the product contains rather than making direct health claims

In July, organic yogurt maker Rachel’s was purchased by French dairy producer Groupe Lactalis, and in November it was announced that Swiss dairy company Emmi is to acquire the global brand rights for the Onken yogurt brand from German food group Dr Oetker. New joint ventures included Venezuelan brewer Empresas Polar partnering with Spanish dairy producer Leche Pascual to build a US$105 million yogurt plant, expected to be located in Valencia, Venezuela and operational by early 2012, and Danone entering into a joint venture with Murray Goulburn Co-operative to produce and market yogurt and other fresh dairy products in Australia.

end of year report






Global dairy trends

Dairy dessertsThe trends witnessed in 2010 in the dairy dessert category mirror those seen in the yogurt category, with health and

indulgence driving innovation. Provenance is another factor influencing new product development, with Danone launching a new yogurt and dessert range in Belgium called Belorigine which claims to be manufactured with local flavours.

In the UK, Dr Oetker launched Fruit Deli, a dairy mousse with a layer of fruit compôte, to bridge the gap between health and indulgence. The launch followed consumer research by Dr Oetker last year that

provenance is another factor influencing new product development

CheeseProvenance and convenience have clearly been the key themes in the cheese category over the course of 2010. Consumers are increasingly

interested in where their food comes from for reasons such as support for local industry, freshness, health concerns and environmental awareness. Highlighting provenance allows the creation of a story around a brand, making it more personal for the consumer. Consumers are more willing to support local brands on a regional or national basis.

New packaging ideas and product development in the snacking cheese category have brought renewed vitality to an established product. Various snacking formats such as individually-wrapped single-portion cheeses have activated the interest of consumers looking for original snack ideas. Time-short consumers are increasingly looking for a snack that delivers convenience, a pleasurable eating experience, and health and nutritional benefits.

The most successful cheese snacks have come from leading international players, such as Saputo Frigo Cheese Heads, which is the leading North American string cheese brand. The brand’s core consumer base is comprised of larger

families with children across multiple economic levels. The product delivers a fun name with bold packaging that appeals to children and has an impactful presence on the shelf.

Cheese dominated lunch/snack packs with ‘dippers’ have contributed significantly to the overall growth of the on-the-go cheese snack category. Brands such as Parmalat’s Black Diamond Funcheez bring excitement to the category and are an easy choice for parents seeking a fun and healthy snack with

New products in the snacking cheese range have brought renewed vitality

cheese in the form and thickness of conventional spaghetti. The product aims to ‘make lunch more fun’ for kids and provide a lunchbox friendly solution for parents.

In packaging, key innovation has been around preserving and extending the freshness of the product. Resealable packaging has become a major trend in cheese. Bel UK has introduced new easy opening packaging for Leerdammer slices - across all variants - the new packaging includes an easy to open and close lid which maintains Leerdammer’s fresh taste for longer.

added calcium and vitamins. In the UK, Kerry Foods launched an addition to their already popular Cheestrings brand - Cheestrings Spaghetti, a snack ©

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end of year report






indicated there were times when consumers fancied a sweet treat that was more than a yogurt or piece of fruit but not as indulgent as a chocolate dessert.

In Germany, recent category performance was spearheaded by Campina’s Optiwell desserts, the successful introduction of Optiwell Control and since then Campina Puddis. Whereas health and additional benefits were amongst the key drivers in 2007 and 2008, indulgence seems to have played an increasing part more recently, with numerous chocolate or caramel offerings showing

strong sales, such as Zott’s Monté, Danone’s Dany Sahne or, a newer offering, Danone’s Fantasia.

In markets such as Poland, as GDP rises, dairy desserts will become more affordable for the average consumer. In the Polish market, although private label commands a large share of sales in other dairy segments, it has not reached the same penetration in dairy desserts, mainly because the general consumer perception is that branded offerings taste better than private label products.

Keep up to date with new product launches by making sure you see each issue of Dairy Innovation during 2011. Our Innovations pages have been a popular regular feature in the magazine - and will remain so next year.

Mini Rice from Müller and Danone’s Fantasia

© Dairy Innovation 2011. Reproduced with the kind permission of

FoodBev Media - www.foodbev.com For details about syndication

and licensing please contact the marketing team on 01225 327890.




Innovations plusPuleva’s launches infant formula and energy and growth drinksSpain’s Puleva has introduced Peques 3 with cocoa and cereals and with cereals and fruit. Made from skimmed milk enriched with Omega-3 DHA and with added calcium and vitamins, Peques 3 is an infant formula specially designed to be the perfect food for children 1-3 years as it provides all the energy and nutrients during this stage of development.

Puleva has also launched Max Energía + Creminiento - Energy and Growth, a milk drink aimed at children over three. Like Peques 3, it is enriched with Omega-3 DHA, vitamins A, B, C, D and E plus calcium, phosphorus, magnesium and zinc - all designed to help make young bones healthy and strong.

Lifeway spices up its Kefir rangeLifeway Foods, from the US, has added three new varieties to its low fat range of Kefir cultured milk smoothies. The new drinks include Pumpkin Spice and Cranberry Créme Brulée. And for chocoholics, there is Chocolate Truffle. All the new Kefirs contain ten powerful probiotics to balance a body’s ecosystem to support immunity, ease digestive troubles and even promote oral health. Being low in fat, low in calories and an excellent source of protein, calcium and fibre, Lifeway says it is an ideal alternative to Egg Nog.

Dutch Lady moves to PETIndia’s Dutch Lady Milk Industries has added a new 900ml PET bottle to its Dutch Lady Chocolate Flavoured Milk range. The low fat flavoured milk is Halal certified and contains added protein, calcium and vitamin B2.

Al Rawabi offer new products for well being and healthDubai dairy company Al Rawabi Dairy, a pioneer in packaged dairy products and fresh juices in the region, is introducing a new range of functional dairy products. These are the B-Activ range of Al Rawabi’s functional drinks and stirred yogurts. The range includes: B-Activ Conjugated Linoleic Acid low fat yogurt; B-Activ Plant Sterol Esters - a low fat yogurt drink that is rich in Plant Sterol Esters; B-Activ with Dietary Fibres in Mango & Peach flavour; B-Activ Fruits of Forest with Dietary Fibres; Stirred yogurt with Aloe Vera; Stirred yogurt with Green Tea; Stirred yogurt with Berries.

The dairy company has also been innovative with the introduction of ‘cow shaped’ bottles for a range of its products - including fresh milk, flavoured milk and laban. The bottles were introduced to celebrate the dairy’s 20th anniversary.

Cereal additions to Müller’s monthly cornersIn Germany, Müller Dairy’s latest corner of the month have included two crunchy yogurt and cereal combinations. The 150g pots include a raspberry yogurt with white chocolate coated flakes and granules or a plain yogurt with with crispy chocolate cream wafers.

The dairy has also reintroduced its 150g Froop of the Year plum and cinnamon yogurt. Brought back by popular demand, the product boasts a loose fruit puree of juicy plums with a subtle touch of cinnamon, to make a delicious creamy yogurt.






Topino is tops for MevgalGreek dairy company Mevgal has launched Topino chocolate milk in fresh modern new packaging. Available in 310ml and 450ml packs, Topino is made from skimmed milk and cocoa, it is a low fat product and boasts a rich chocolate flavour.

Coca-Cola Chile’s Hugo fruit and skimmed milk drink

Coca-Cola Chile has launched Hugo, an improved version of its fruit nectar and skimmed milk

drink. Combining 90% nectar and 10% skimmed milk it delivers the consistency and texture of a dairy drink with the refreshing taste of fruit. Hugo is available in banana-orange, peach, and custard apple-orange flavours in 1 litre and 200ml Tetra Pak.

Landliebe offers winter temptationGerman dairy company Landliebe Molkereiprodukte has added to its range of seasonal yogurts in 500g returnable glass. The new additions include chocolate yogurt on baked apple, chocolate yogurt and cherries, and yogurt with cinnamon and lebkuchen.

Recent innovations reported in functionaldrinksSeveral new dairy products have featured in recent issues of functionaldrinks - the fortnightly newsletter from Zenith International.

Danone has expanded its already extensive range of drinking yogurts with a new summer inspired variant. The new apricot flavoured Actimel variant contains the L.casei strain and vitamins B6 and D. Danone is marketing the Actimel range at children as well as adults. The company has also relaunched its range of yogurts for digestive transit in China. The line-up is the equivalent to Activia and is called BiYou (pronounced ‘bio’).The yogurt was first launched in the country under joint-venture between Danone and local Bright Dairy but is now

being re-introduced

by Danone alone. BiYou is available in spoonable and liquid format. The spoonable format retails in multipacks of 8x100g tubs, while the drinkable version is sold in 190ml bottles - both in strawberry variants.

La Seren’sima, Groupe Danone’s

Argentinean subsidiary, has

recently added a new range

of calcium enriched

yogurts. The new

yogurts were launched

under the brand

umbrella Ser and have

been named Ser Calci+.

The line-up consists

of peach and strawberry 190g

drinking yogurts and 125g

spoonable yogurts in peach,

apple, strawberry and pear-

grape. The newly-launched

yogurts are targeted at women

of all ages who may be at risk

of not consuming enough

calcium on a daily basis.

US food company Abunda

Functional Foods has partnered

with probiotic specialist

Ganeden Biotech to launch MojoMilk, a probiotic chocolate milk mix aimed at children. MojoMilk contains Ganeden Biotech’s patented probiotic blend GanedenBC30, which laboratory studies have shown to deliver more than ten times the live cells than common probiotic yogurt cultures.

After five years of research, Germany based Milchkristalle has patented its milk powder product Nacht-Milchkristalle, based on the sleep-regulating hormone, melatonin. First unveiled in Germany, the sleep aid has now been rolled out in Austria. Studies show that milk taken from cows at night contains far higher levels of melatonin - up to a reported one hundred times - than milk produced during the day. According to the company, melatonin is one of the most important factors in the fight against free radicals and is used for the treatment of sleeping problems and jet lag, as an

anti-ageing substance and to reduce blood pressure.

Finnish dairy specialist Valio has unveiled an enriched milk that is suitable for the entire family thanks to its improved nutrition over regular milk. Maito Plus is a fat free milk that has a rich flavour and, compared to regular skimmed milk, contains 50% more protein, 50% more calcium and 100% more vitamin D. Packed in 1 litre cartons, it is also a good source of B vitamins and potassium. Valio says the new milk is suitable for consumers of all ages including children, adolescents, athletes and the elderly. It can also be used as an ingredient in cooking as long as the milk is not boiled.

INNOVATIONS SPECIAL





FOCUS26 www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Global top 10 dairy companies

The dairy world continues, cautiously, to get back to normal after the price shocks of 2008/9. It is interesting to note that the collective turnover of the Top 10 dairy companies in the world shrank by $13.5 billion between 2008 and 2009 an average of 10.5%, and that many of them have taken great care to strengthen their balance sheets as they recover from recession.

In the near future, it seems highly likely that the process of globalisation will continue and again start to gain momentum. Dairy remains one of the fastest growing food sectors around

Zenith International Dairy Consulting Director Kevin Bellamy takes

a look at the performances of the Global Top 10 dairy companies.

the globe and there is a big gap to fill between the average consumption of dairy products in developing markets of 51kg per year and the average of 268kg per year consumed in developed markets. As the trend in these markets for consumers to be more urban, wealthy and middle class continues, there is a growing acceptance of the nutrition and health benefits of dairy which coupled with a developing palate for western diets continues to drive increases in demand.

As indicated by this year's Top 20 list published in July by Rabobank, with notable

exceptions it is multi national companies from developed markets who, through joint ventures and acquisitions, are benefiting from the growth in developing markets - bringing their technical ability to quickly adapt to the changing desires of these consumers and providing food safety reassurance.

The Top 10 ranking has changed little from 2009 but there are some notable changes in those challenging to be in the list with Asian companies creeping up the list as the Asian markets continue to dominate world growth.

Nestlé CEO Paul Bulcke

The increase in international trade which increasingly fills the gap as demand outstrips supply in developing countries, together with the ebbs and flows of supply and demand for products and inputs, continues to lead to increased market volatility which in turn continues to encourage further consolidation - another trend which is set to continue.

Expanding based on Health and Nutrition in developing markets

Nestlé continues to be the biggest dairy company in the world. During 2010 the reins of the dairy SBU (Strategic Business Unit) passed from the assured hands of Tom Coley, who had run the business since 2002, to Thierry Philardeau - previously a senior player in Nestlé’s water business.

As the world's biggest food company Nestlé sets major trends in the way that the market is seen. Paul Bulcke (CEO) this year reaffirmed the company’s commitment to nutrition and health as its key marketing thread. This has had particular impact in developing markets where the companies

1 Nestlé(Dairy Turnover 2009 - $25.9 billion)

‘Creating Shared Value’ initiative is seeking to provide improved nutrition to people in developing markets at affordable prices. Nestlé’s focus on developing new markets is reflected in the recent announcement of an investment of $100 million in co-operating with Fonterra in the building of a dairy plant in Chile.

Biggest fresh milk supplier expanding though acquisition in Russia and CIS

At number two in the overall dairy ranking, Danone continues to be the biggest supplier of fresh dairy products around the world. Danone has also had a change in management during the year with Jordi Constans being named as Head of Fresh Dairy Products. As an organisation, in 2010 Danone has increased its focus on Health and Nutrition

2 Danone(Dairy Turnover 2009 - $14.8 billion)

in which dairy plays a major part despite continued difficulties in getting claims regarding its probiotic products recognised by the European authorities.

In addition, after a previous association with Wimm Bill Dann, owning an 18% stake which they quickly divested this year, Danone has now acquired Unimilk, making Russia and the CIS its biggest market.

Kevin Bellamy





FOCUS 27www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

French dairy company aiming to be world's leading cheese company through acquisition

Although French, Lactalis now does most of its business (56%) outside France. This year the company has continued a steady international growth. The purchase of Spanish company Puleva Foods is the latest in

3 Lactalis(Dairy Turnover 2009 - $12.7 billion)

a string of acquisitions for Lactalis, including the Italian cheese company Galbani, US company Rondele, Lubborn Creamery and Spanish company Forlasa Alimentación. Lactalis has had a long term acquisition strategy aimed at making it the world's leading cheese company. However, more recently they have shown an interest in the French yogurt maker Yoplait.

Dutch giant co-operative continues to consolidate assets after merger

Friesland Campina has continued with the significant reorganisation of the business since the merger of the two major Dutch co-operatives, including the planned closure of six sites and the merger of R&D facilities at Wageningen. Despite the focus on reorganisation, the company posted strong growth for the

4 Friesland Campina(Dairy Turnover 2009 - $11.2 billion)

first half of the year mainly due to strong performance in its Asian and African markets which grew by 15.9% rather than Europe where growth was disappointing. Cee’s t’Hart the CEO, in setting out the companies strategy until 2020, envisages growth in dairy-based beverages, branded cheeses and infant and toddler nutrition ingredients as it plans to target previously unexplored markets in the Middle East, North Africa and South East Europe.

Revised capital structure and reduction of debt put co-op in strong position

Fonterra has had a successful year making the second biggest payout to farmers in its existence. The Board has also been able to persuade members to adopt a new capital structure, allowing share trading between farmers - requiring the co-op to have less capital on hand to manage this. During the year Fonterra has significantly reduced its gearing through further farmer investment. This will allow the co-op to invest further in infrastructure to support its global business - for example the $100 million joint

5 Fonterra(Dairy Turnover 2009 - $10.2 billion)

investment with Nestlé in Chile.

However, while becoming one of the most competitive global

players, Fonterra

complains that

it still has to

supply domestic

competitors -

some of whom are

foreign owned -

with milk from its

producers under

the Dairy Industry

Restructuring Act.

Increasingly difficult trading conditions impact biggest US player

While maintaining its position as the biggest US dairy company Dean Foods, which owns Horizon, Alta Dena, Garelick, McArthur and other dairy brands nationwide, is struggling with a shift toward private-label milk consumption, excess capacity in the industry and the price cuts it made to appease consumers and retailers. Both Fitch and S&P - the two big credit rating agencies - have downgraded Dean’s credit rating recently and the company has seen third quarter profits drop by three quarters. The company’s Fresh Dairy Direct-Morningstar business

6 Dean Foods(Dairy Turnover 2009 - $9.7 billion)

has been particularly hit as supermarkets have sought to reduce prices throughout the current recession.

Interestingly, the company’s soya beverage subsidiary Whitewave which successfully acquired Belgian company Alpro last year bucked this trend and continues to generate respectable profits.

FrieslandCampina CEO Cees't Hart

Fonterra CEO Andrew Ferrier





FOCUS28 www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Global top 10

US food giant recovers from difficult time with cheese

Kraft Foods is the biggest US manufacturer and marketer of food products, second only to Nestlé around the globe. It grew out of a wholesale cheese delivery business established in Chicago in 1903 and expanded rapidly by supplying American forces in both World Wars.

Kraft has focused on the controversial takeover of UK chocolate maker Cadbury recently moving the holding company of the business to Switzerland to avoid paying UK tax. US cheese revenues, representing 6% of Kraft’s total turnover were down by

9 Kraft Foods(Dairy Turnover 2009 - $6.8 billion)

10.1% in 2010 leading to more than an 18.1% drop in operating margin from US cheese, indicating the difficulties which the market has been through over the last couple of years.

However, the US cheese market is showing signs of recovery and the re-packaging of its Philadelphia brand may lead to an improvement in Kraft’s performance in this area next year.

Danish co-op saves its money to strengthen investment in developing markets

Arla Foods’ key approach to recovering from the recession and market turmoil has been to save money and build its balance sheet strength. By its own admission the company has paid a lower milk price than many of its members would have liked. However, the company is now well positioned and starting to make investments in key markets such as the Netherlands, Sweden, South America and the UK - announcing a £150 million dairy in Aylesbury and investment at the UK Westbury powder plant. Such investments are designed to maintain their position as a world player.

The prudent approach to finance, together with the

7 Arla Foods(Dairy Turnover 2009 - $8.7 billion)

company's strong branding linking them ‘Closer to Nature’, has been very positive throughout the year. The company has also changed the basis by which Swedish milk prices are paid, to try to overcome its lack of competitiveness caused by currency changes in order to maintain one of its key home markets. However to remain in the global league, at some point Arla may have to address its capital structure in a similar way to Fonterra to provide the level of investment required.

Arla Foods CEO Peder Tuborgh

All

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s in

US

Do

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oth

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ise.

Next issueHighlights of Dairy Innovation issue 35

February 2011

Don’t miss:

Special Report: liquid milk and flavoured milk

Milk was once described as ‘white and boring’ - with a limited choice. This Special Report takes a look at the ever changing story of the wide selection of milks that are now on offer.

Insight: cheese production and packaging

This Insight takes a look at the latest developments in cheese making machinery and at developments in cheese packaging.

Focus: probiotic ingredients, colours and flavours

Dairy Innovation focuses on the latest trends and developments in the use of probiotic ingredients, new flavours and flavour combinations and colours.

Expert opinion: energy and water management

Dairy Innovation examines the efficient use of energy and water, which is important, not only to keep costs down, but to address the increasing environmental challenges faced by every dairy company today.

Other features/topics covered in this issue:

• Innovations - new dairy products from around the world

• Dairy Business - International Dairy Industry news

• Marketing Watch - focusing on the latest dairy campaigns and promotions

• Dairy-Tech focus - technical news.

For your hard copy of Dairy Innovation contact [email protected] or call +44 (0)1225 327871.

If you have any expertise in the above features and would like to share your knowledge, thoughts and suggestions, then please email the editor - [email protected]

Advertising interest? Please contact [email protected]

Contact us





FOCUS 29www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

US co-op mourns loss of leader while looking at the future market

Dairy Farmers of America overcame the sad news in December 2009 that its Chairman - and industry titan - Tom Camerlo had lost his fight with cancer, with Randy Mooney, previously Vice Chair, elected as Chair.

The company retains about 30 processing sites after the sale of its National Dairy Holdings business to Mexican company Lala during 2009. In 2010 DFA has expanded into the growing Hispanic cheese market with the purchase of Houston based Castro Cheese. DFA, which is responsible for the purchase of about one third of all milk in the US and is a major supplier

8 Dairy Farmers of America(Dairy Turnover 2009 - $8.1 billion)

to Dean Foods, has spent much of 2010 recovering from the very difficult year experienced by members in 2009 when market volatility led to poor prices. As a result of this DFA has a major interest and involvement in the ’Foundation for the Future’ proposals from National Milk Producers Federation to change the basis for the market of raw milk in the US.

Anglo-Dutch conglomerate continues to indulge itself with ice cream

The Anglo-Dutch giant Unilever, while being one of the biggest dairy companies in the world by virtue of its ice cream businesses, sometimes has an uncomfortable relationship with the rest of the sector with its approach to such issues as trans fatty acid labelling and claims made about its yellow fat products.

Unilever competes aggressively with Nestlé in the $59 billion global ice cream markets with

10 Unilever(Dairy Turnover 2009 - $6.4 billion)

brands such as Ben & Jerry and Magnum, investing in R&D to provide healthier options for indulgence.

Together Unilever and Nestlé control over one third of the global market for ice cream. With the ice cream market in countries such as India expanding at around 20% per year, Unilever are well placed to take advantage of this key indulgence market.





30 EVENT rEViEw www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Discover . . . natural inspiration

One of the biggest events

in the dairy calendar

took place in November 2010

- the International Dairy

Federation World Dairy

Summit. Described as ‘the

showcase for all aspects

of the dairy industry’, the

Summit had the theme

- Discover . . . natural

inspiration.

Welcoming delegates to the International Dairy Federation’s 2010 World Dairy Summit, IDF President Richard Doyle promised an informative week sharing knowledge and science with both well-established and new colleagues.

“I believe strongly that IDF is a unique organisation: uniting all stakeholders in the sector to work co-operatively towards the development of knowledge covering all aspects of our industry. It does this by sharing expertise, opinions and work through a worldwide network of volunteer experts and leaders.

“It is in the nature of this sharing and the overall

iDF world Dairy Summit 2010, Auckland, New Zealand

The New Zealand Organising Committee ensured that WDS 2010, the second Summit to be held in New Zealand, was as informative, stimulating and inspiring as was the first in 2001.

“We will seek ways to discover and analyse information through a panel of excellent speakers that will appeal to a

wide range of attendees. Our focus - natural inspiration - will ensure that relevant and current topics are examined in the Summit, gathering expert opinion from around the world.”

The individual conferences cover subjects right across the dairy industry - dairy farming, science

and technology, nutrition and health, ingredients, manufacturing, sustainability and the environment, dairy policy and economics, product integrity, and marketing.

In this issue of Dairy Innovation - and the next one - we report on this excellent event.

desire to achieve a common understanding on standards, practices, analysis, science and marketing techniques that the value of IDF to the dairy sector resides.”

Right: A traditional Maori welcome

Below: The Maori concert party gave a flavour of New Zealand





31EVENT rEViEwwww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

The melamine case in 2008 brought into focus the need for a more systematic approach for checking eventual adulteration of suppliers’ milk through the implementation of integrated chain management principles. The melamine case showed the need to put in place more robust procedures and systems.

As a response, the IDF initiated a parallel project on monitoring the integrity of suppliers’ milk. A variety of methods and techniques are currently available or can be adapted

from other areas. Combining or supplementing these methods and optimising them for the purpose of monitoring the integrity of suppliers’ milk should provide a feasible way to counteract systematic adulteration.

The project will provide the principles and examples of approaches and means (tools, procedures, methods) in the form of a Guide. Use of the Guide, in combination with the technical specification (TS)/reviewed method (RM), will further reinforce consumer

IDF and ISO combine to address melamine in milk

Following the crisis caused by milk adulterated with melamine that affected thousands of children two years

ago in China, the International Dairy Federation (IDF) and the International Organisation for Standardisation (ISO) have developed a new test standard to determine the content of melamine and cyanuric acid in liquid milk, powdered milk products and infant formulae.

confidence in the milk industry’s ability to guarantee safe and nutritious products.

The project will formally publish its conclusions in early 2011, but progress to date was outlined in a key presentation in Auckland. “This much awaited document will help strengthen consumer confidence in the milk industry,” said IDF President Richard Doyle. “It will ensure the integrity and safety of tested milk and derivative products, and producers, manufacturers and regulatory authorities can use it to prevent further incidents.’’

Although currently published as a TS/RM, the document is expected to become a fully fledged International Standard in the future.

For more information, visit www.fil-idf.org

Cesare Corradini, President of the Italian National Committee FIL-IDF, writes: “After 55 years, this important event comes back to Italy with a very urgent and pressing goal: gathering dairy experts from all over the world to give their contribution to a ‘Sustainable Food Security’.

“Summilk will give you the opportunity to be main actors in production, sustainability, science and technology, environment, food safety, policies and economics, marketing, nutrition and health across the dairy sector. Which venue would be better than Parma to host the Summit and face these challenges? No other.

“The city is located in the centre of the Italian Food Valley and its surrounding areas are the heart of the production of many Italian typical cheeses as well as the headquarters of many Italian leading dairy companies and laboratories. In a few words, a great part of the Italian dairy industry and research, as well as the European Food Safety Authority (EFSA) are based here.

“Italy is well aware that the IDF World Dairy Summit is a great opportunity therefore, on behalf of the whole dairy sector, I wish all participants my warmest regards and sincere friendship.”

For more information visit www.wds2011.com

Italian welcome waiting in 2011

The IDF World Dairy Summit 2011 -

Summilk - will take place in Parma, Italy on the 15-19 October 2011.

As Director of the Madrid Institute for Advanced Studies on Food (IMDEA-Food) and former Vice-President of Scientific and Technological Research of CSIC, Dr Juárez is very actively involved in the dairy sector, fostering innovation and contributing to improving industry competitiveness.

Dr Juárez is considered a key scientific reference and advisor and has contributed to many research projects at both national and international level. She is particularly

active in the area of methods of analysis and sampling at IDF.

Throughout her career she has published numerous papers in scientific journals of major international impact. Her areas of research include: chemistry of cheese during ripening, minerals and salt equilibrium in milk, chemistry lipids in dairy products and development of chromatographic procedures to determine milk fat quality and traceability. In recent years, she has focused her scientific activity toward analytical methods development to

Spanish professor wins IDF Award 2010

The 2010 IDF Award was presented to Dr Manuela Juárez, Research Professor at the Spanish National

Research Council, Instituto de Investigación en Ciencias de la Alimentación (CSIC-UAM).

Dr Manuela Juárez is presented with the 2010 IDF Award by IDF President Richard Doyle

determine conjugated linoleic acid (CLA) isomers in dairy products and to search alternatives procedures to increase healthy milk lipids, with emphasis in CLA.






Discover . . . natural inspiration

Chile is a major dairy country which was very active in IDF many years ago. the Federation re-initiated contacts with Chile last year on the occasion of the 3rd International seminar for the dairy sector - Chilelacto 2009. At this event, IDF Director General

Christian Robert - taking advantage of an invitation from Federleche Chile - delivered a presentation about IDF and participated in several meetings in Valdivia with representatives of the industry, dairy associations and the Government.

Chile joins IDF

Chile became the 57th country to join the International Dairy Federation when it was

welcomed as a new member during the 97th General Assembly held just before the World Dairy Summit.

IDF President Richard Doyle (fifth from left) and Director General Christian Robert (seventh from left) with the Chilean delegation

Consequently, it has revamped its flagship publication: the IDF World Dairy Situation 2010 report, incorporating several changes designed to make it more usable and relevant to decision-makers and dairy-sector stakeholders concerned with continuously changing global dairy market conditions. It is also easier to use and reference thanks to its new innovative layout.

This updated edition is the result of close collaboration between experts and key organisations around the globe and within the IDF. Its contents, including statistics on production, consumption and trade in all regions of the world, as well as specific observations from IDF member countries, will help the reader to better understand and deal with the many challenges and opportunities facing the

New-look flagship publication ‘IDF World Dairy Situation 2010’ unveiled at Summit

global dairy market. Many of these are driven by population and income growth, consumer health concerns and changing dietary patterns worldwide.

Commenting on the World Dairy Situation 2010 report, Bob Yonkers, Chair of the IDF Standing Committee on Dairy Policies and Economics said: “Despite ups and downs, world trade in dairy products continues to increase, rising 7% in 2009 compared to the previous year. That trend appeared to be continuing in the first half of 2010. New market exchange activity, reported in the World Dairy Market Forum section of this report, is a reflection of this

trend and an expectation that it will continue. The IDF World Dairy Situation 2010 brings strategic insights into this dynamic and growing world dairy market for use by producers of farm milk, dairy product manufacturers, and ultimately the end-users of those products around the globe.”

The world dairy market is constantly growing and evolving. Every year, global production is increasing and fulfilling

new needs and requirements in regions and continents around the world. The International Dairy Federation is aware that consumer needs are changing and the dairy sector must adjust to such demands quickly.

Photo gallery: IDF WDS 2010

Over 2,000 delegates were at the Welcome Ceremony

The World Dairy Leaders panel






The Guide can be downloaded from a new website - http://www.IDF-LCA-guide.org - that the IDF has launched. The website also presents interviews with dairy sector stakeholders on the importance of the Guide to their operations.

This new methodology, based on the best available science and current international standards, was launched at the World Dairy Summit. It will allow stakeholders in the dairy sector worldwide to produce consistent and comparable data on their carbon footprint. Such robust measurement will enable effective management and reduction of GHG emissions within the sector.

Commenting on the new Guide, IDF President Richard Doyle said: “I am very pleased with the leadership role IDF

is playing in addressing the environmental challenges facing the dairy industry. The publication by IDF of a new Life Cycle Analysis methodology for dairy products will, I hope, impact on everyone in the dairy industry and every dairy company around the world. This methodology will enable stakeholders to set comparable benchmarks for measuring the carbon footprint of their dairy products.”

The Guide has been developed under the leadership of the IDF Standing Committee on

IDF launches common carbon footprint methodology for global dairy sector

All sectors are being challenged to quantify and reduce their carbon footprints, or emissions of greenhouse

gases (GHGs), and businesses in agriculture and food production are no exception. As part of the dairy sector’s action agenda on climate change, the IDF has now published ‘A Common Carbon Footprint Approach for Dairy – The IDF Guide to Standard Lifecycle Assessment Methodology for the Dairy Sector’.

Environment (SCENV) in close collaboration with the Food and Agriculture Organisation of the United Nations (FAO) and the Sustainable Agriculture Initiative Platform (SAI Platform).

New Zealand’s history was told at the Tetra Pak Gala DInner

In deep discussion at the Orica Welcome Reception at the Maritime Museum

Time for a chat in the exhibition hall Fun and food at the Gala Dinner

Richard Doyle speaks at the IDF SWIFT session at WDS

More on the Summit in the next issue of Dairy Innovation





34 update www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Dairy Innovation takes a look at some of this year’s activities - some are national projects, others are local, individual campaigns, with many reports coming from FAO’s email network.

In the UK, children’s TV presenter Andy Akinwolere joined pupils from St Joseph RC Primary School, Ealing at Pineapple Studios to perform the ‘Milkshake’ dance - created by school milk specialist Cool Milk with the help of 11 year old British breakdance star Akai Osei. Akai won a major TV competition in the UK called ‘Got To Dance’ and also appeared in the film ‘StreetDance 3D’. Schools and Nurseries across the UK had been urged to make their own video doing the ‘Milkshake’ dance as part of a competition to celebrate WSMD and promote the health benefits of school milk - with Wii Consoles and dance DVDs as prizes for the clips with the most votes in each of four categories.

The Dairy Nutrition Council in Finland sent campaign posters to primary schools and secondary schools and celebrated with a competition aimed at children aged 13-18 years. The youngsters sent in photos about their breakfasts and then voted for the best pictures. A second campaign

World School Milk Day (WSMD) is an international event held every year with the support of the Food and

Agriculture Organisation (FAO) of the United Nations. Last month, writing in Dairy Innovation, Tetra

Pak Director Food for Development Office Ulla Holm described World School Milk Day as an important

occasion to focus public attention on vital milk programmes in schools all over the world. “Experience

shows that school milk programmes not only improve the health and learning capacities of the children,

but function as a catalyst to increase demand for locally produced and processed quality milk.”

- ‘Milk keeps you together’ was

for children aged 8-13 years old.

Children could test if they had

bone healthy eating habits and if

they were doing enough exercise.

Tetra Pak helped organise a

school milk survey in Germany.

The survey found that while

milk was an integral aspect of

a healthy children’s diet, the

amount of milk available to

German primary school children

did not reflect the widespread

appreciation of its nutritional

value. Among the 500 parents

surveyed, 93% believe that

milk is a healthy drink and 66%

believe it improves academic

performance. But only 58% of

children had access to milk at

their primary schools during

break times. And even when milk

was on offer, only one in three

children regularly drank it at

school.

And while almost half of East

German schoolchildren regularly

drink school milk, compared to

only 27% of children attending

West German schools.

Students of Jack & Jill

Montessori and High School

in Pakistan were able to see

a real buffalo in their school

- something many had only

seen previously in text books.

Their celebrations included a

multimedia presentation by a milk company, emphasising the benefits of drinking milk. There was information for mothers and children about the advantages of milk. While mothers were encouraged to persuade their children to drink milk at least once a day, if not more, a representative of the milk company urged the mothers themselves to take a glass of milk daily, so that their bones and teeth got stronger. The teachers had prepared tasty milk-based refreshments like ‘lassi’, custard, shakes and other sweet dishes.

The Straits Times newspaper reported that students from NorthLight School headed to five shopping malls across Singapore on World School Milk Day to sell packets of milk to raise funds for their needy classmates. The 20 students, who are enrolled in a retail operations course, sold 6,000 of the 6,800 milk packets donated by F&N Magnolia. Around $8,000 to $10,000 was raised for the school’s financial assistance scheme, which pays for the meals, transport fees and uniforms of needy students.

Meanwhile, Greenfields Milk broke the Singapore record for getting the most number of people to drink milk at the same time with about 5,000 primary school

pupils and teachers involved. The milk brand also donated $32,000 to The Straits Times School Pocket Money Fund at the event. The organisers also invited 200 Brownie Guides to participate in the World School Milk Day celebrations.

South Africa‘s celebrations included a special mini event organised by the Department of Agriculture, Forestry and Fisheries at the Directorate

of Animal Production in conjunction with Milk SA and its affiliates, the Milk Producers

Organisation (MPO ) and the SA

Milk Processors organisation. A wall with a suitable background was prepared at the Directorate’s offices and children were invited to paint pictures with a milk theme.

In the US Lincoln County Schools Child Nutrition Director Jeremy Berry decided to put the Enterprise Attendance Center on the map by inviting ‘Homer the Holstein’ to make his debut appearance for the kindergarten class. With the support of the Southeast United Dairy Industry Association, Homer was able to pass out pencils, bookmarks, and stickers to all the young students while explaining how important milk is for their proper growth and development.

World School Milk dayFocusing attention on vital milk programmes in schools worldwide





35updatewww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

The Department of Education & Training in Vietnam’s Vung Tau Province joined with Tetra Pak Vietnam to organise a celebration for the children at 1-6 Kindergarten in Xuyen Moc district. Six hundred school children were entertained by a magician and a circus, enjoyed fun and games and learnt how milk helped them to be taller, stronger, faster and smarter. The event was also the launch for Ba Ria - Vung Tau’s School Milk Programme for all 200 kindergartens in the province, giving free milk to 44,000 children in the kindergartens & malnutrition children at healthcare centres in Ba Ria Vung Tau.

The Danish Dairy Board, part of the Danish Agriculture and Food Council, wanted to promote dialogue between school children the world over, increasing tolerance and mutual understanding between cultures. They put Danish youngsters in touch with school children in other countries, enabling them to exchange life experiences and cultures in a very immediate way.

South Korea celebrated World School Milk Day for the first time. Before the Day, Korea Dairy Committee organised

a competition among schools in the school milk programme to find the best school in each of the 14 local provinces. The winning school won a trophy, signboard and educational materials. The students were offered free dairy farm tours. The school milk contests had four different categories - ‘Milk Poster Contest’ for elementary school students, ‘Milk Carton Art Contest’ for middle schools, ‘Milk UCC Contest’ for high schools and ‘School Milk Photo Contest’ for teachers.

On the day, the winning school - Goyang Baekseok elementary school - held a special event with more than 1,500 dairy stakeholders, parents, students, principals, local province education officials and civil servants present. The students could try science magic tricks using milk as well as making ice cream. There was a milk carton art and poster design competition and participants were attracted to a world map made from milk cartons.

A celebration at Zhemgang Lower Secondary School in Bhutan focused on the value of milk in the diets of children. The event was attended by 700 people - including 625 students, 27 teachers, 45 farmers and others. Nearly 200 litres of milk were contributed by farmers of Trong Geog and there were three competitions related to milk.

The Croatian Dairy Union encouraged school children to create original elementary school students posters that showed their appreciation for milk. Children from Zagreb and

Varaždin came together in the main square and presented their work with pictures and songs about dairy cows and dairy foods. Croatian dairies Belje, Dukat, Meggle and Vindija promoted the Day by giving out milk and dairy products like fermented milk, chocolate milk and cheeses. The Croatian dairies also donated milk and dairy products to primary schools involved in educational work and rehabilitation for children with special needs.

In Romania, where more than two million children enjoy milk on a daily basis, WSMD was celebrated for the second time. With the support of Tetra Pak, 450 children from the Swedish Foundation Save the Children were invited to a theatre to be entertained with a funny play about love, ingredients and tastes - based on a popular story from Romanian folklore. After the play the children received milk products and Yo-Yo toys made from recycled beverage cartons.

Tetra Pak used World School Milk Day to announce the expansion of its support for school milk programmes in Pakistan, Senegal, Ukraine, Bosnia and Herzegovina, Gaza and the West Bank. The company is

partnering with the Pakistan Poverty Alleviation Fund (PPAF) and the National Rural Support Programme (NRSP) to provide milk on a daily basis to over 7,000 primary schoolchildren in 41 schools. The programme has been credited with providing direct and indirect employment opportunities for more than 50 people and an increase in school enrolment from 5,200 to 7,000 children.

A new school milk pilot programme - promoted by Olympic Champion Ekaterina Serebryanskaya - is underway in Ukraine, with the aim of rolling it out on a national level. In Senegal Tetra Pak is supporting the start-up and operation of a school milk programme aimed at improving the children’s nutrition, attendance and academic performance in 11 elementary schools in Dakar. A new school milk programme is also underway in partnership with the MilkoS dairy in Bosnia and Herzegovina. Ten Sarajevo schools receive ‘S-cool milk’ in a unique Tetra Pak school milk package which is not available commercially.






HiE reviewThe aisles of the Health Ingredients Europe exhibition once again echoed with conversations

concerning health claims, fortification, product & performance enhancement and the latest

ingredient solutions for health and wellbeing products. Food & Beverage International Managing

Editor Claire Rowan reports.

Ingredia’s Refuel & Repair

Held for the first time in Madrid, Hi Europe in

November 2010 housed over 90 exhibitors of nutraceutical and functional ingredients each extolling the natural virtues as well as the healthy attributes of their product offerings. Dairy applications continue to figure highly as ideal vehicles for today’s high performance health ingredients, while milk itself provides the raw material for many of this year’s innovations.

Hungarian company Adexgo was attracting interest for its ‘Grass Milk Plus’ whole milk with naturally high levels of Omega-3 fatty acids and CLA (conjugated linoleic acid). Fitting the bill for both natural and healthy, Grass Milk Plus is the result of a new feeding technique for dairy cows, which is based on a patent-pending by-pass material incorporated into the cow’s grass-based feed. The resulting milk tastes, looks and smells like standard milk yet contains enhanced levels of the important nutrients Omega-3 and CLA, which withstand pasteurisation, powdering or concentration. This

naturally fortified milk can be supplied in powder or liquid form for packaging or for blending into other dairy products.

Several of the leading dairy ingredient suppliers, including Fonterra, Glanbia, Ingredia, Volac and Carbery, seized the opportunity to demonstrate their expertise and showcase their new developments - with whey proteins predominating.

Alongside its Bio-Actives range, which includes Lactium, StarchLite, CarbLite, and CranMax, Ingredia Nutritional launched a series of 100% milk proteins and hydrolysates with enhanced formulation properties. Created from natural milk using membrane separation with low heat for the drying process, so that the proteins are

not denatured, the new specialty

protein and hydrolysates contain

85% or more of protein on a dry

weight basis. The proteins are

100% soluble, rich in caseins,

low fat, either low in lactose or

lactose-free, organic and highly

dispersible. They have improved

fluidity, a high microbiological

profile and no bitterness.

“Our new hydrolysates offer

a high bioavailability of amino

acids without the allergens

usually associated with the

protein, which makes them

suitable for infant formula,

weight management, clinical

nutrition and sports products,”

said Harmony Villemin,

Marketing, Ingredia Nutritional,

which was tasting its finished

Refuel & Repair product concept

at the show. “They allow

manufacturers to formulate

high protein beverages without

increasing the viscosity as other

proteins do.”

Refuel & Repair is a high protein

beverage packed in a 250ml

bottle, which contains 30g of

protein in each bottle without

impairing the fluidity and

drinkability of the beverage. It

contains Ingredia Nutrition’s

Prodiet 87 B Fluid protein for

faster recuperation and repair

after exercise and Prodiet

Hydrolysate, which helps reduce

the recovery time required

after exercise through the quick

assimilation of amino acids such

as BCAA (branched-chain amino

acids).

Protein was also the focus

for Volac, which highlighted

the benefits and clarity of its

whey protein isolate, Volactive

Hydrapro when it is used to

fortify water-based beverages

with protein. Demonstrated on

the stand in Lemon & Lime and

Ice Peach beverage concepts,

Volactiv Hydrapro is said to

offer protein fortification and

clarity coupled with heat stability

and a long shelf life. It can be

combined with carbohydrates

and fluids to give clear liquids,

which rehydrate, refuel and

recondition muscles quickly

following exercise, helping

to maintain lean muscle

and improve future exercise

capability, according to Volac.

Each of the products being

tasted at the show contained

2% protein.

Fonterra’s PowerProtein, whey protein concentrate was demonstrated in delicious nutrition and ‘Slim Break’ bars while its version of a clear whey protein was formulated to refreshing effect in a Sport Recovery beverage and Protein Sports water.

Time for health






Volac showcased the benefits of its Volactive Hydrapro

Biovelop’s PromOat oat-based soluble fibre ingredient can be used in a range of applications

Glanbia offered Carribean Cruiser Juice Drinks made using dairy ingredients

The PowerProtein 515 whey protein concentrate and PowerProtein 4870 milk protein in the nutrition bar provided high levels of whey protein and light & stable foam capabilities, respectively. They were used to create a light and tasty nougat filled chocolate covered concept containing 10g of whey protein. The Naturally Slim Break bar featured PowerProtein 515 whey protein concentrate, which is Fonterra’s ‘next generation’ of concentrate powder that was combined with PowerProtein 600 Dairy Protein Crisps, which are clean tasting and impart texture to the bar. ClearProtein 8855 whey protein isolate meanwhile was used in the clear beverages to give protein with clarity, stability and a clean neutral flavour, according to Fonterra.

Carbery’s Isolac range of clean tasting whey protein isolates were demonstrated alongside its Optipep range of whey protein hydrolysates, with a new clean taste profile. Used to fortify ready to drink products, functional waters, weight management products and sports beverages, the Isolac range is said to deliver superior whey protein with a very low fat and lactose content, be easy to blend and have a clean taste. Specifically for the sports nutrition market, the Optipep range delivers high levels of

di- and tri-peptides that aid recovery and strength building. They enable manufacturers to make on-pack claims in relation to the inclusion of hydrolysed whey protein.

Highlighting its wide range of dairy-based healthy ingredient solutions, Glanbia Nutritionals had blended its TruCal Milk Mineral Complex with a vitamin/mineral premix and carrot, lemon and mango in a Carribean Cruiser Juice Drink. Tangy and delicious, the beverage delivered essential minerals such as calcium, magnesium, phosphorus and other trace minerals in a format that optimises their absorption by the body. The Slim N’ Trim Smoothie on the stand was made from Glanbia’s US-patented and clinically tested Prolibra weight management ingredient, which had been blended with banana and agave. The dairy-based Prolibra has been shown to promote fat loss, retain lean muscle mass and lower glycemic index.

Weight management was also a focus for the Slovenian health food & ingredient specialist, Valens, which has developed a Slim&Fit solution that combines L-carnitine and Co-enzyme Q10. Key components in the metabolism of fats, the two ingredients have been difficult to combine in products in the past as one is water soluble and

the other is a lipophilic molecule that would not be soluble in an acqueous liquid. Valens has overcome this and patented its Slim&Fit ‘manufacturer-friendly’, water-soluble ingredient solution, which is available in both liquid and powder forms, and is stable at various temperatures. Slim&Fit can be used in a wide range of products including milk and dairy products where it is said to be easy to use due to its clean taste, excellent stability and superior bioavailability.

Dairy applications

Throughout the show dairy products were proving to be the ideal applications for many innovative and healthy ingredients.

In the new business section of the show, Biovelop’s PromOat soluble beta glucan was attracting attention for its emulsifying properties as well as its fibre and beta glucan benefits. Suitable for use in a wide range of dairy applications, PromOat contains 35% oat beta glucan, which means that EFSA and FDA approved health claims linking oat beta glucan to the maintenance of healthy cholesterol levels can be used.

“PromOat combines exceptionally well with dairy products to create the sort of rich, creamy mouth-feel that is normally found only in full-fat products. This helps manufacturers to overcome the unsatisfying, think texture and mouth-feel of many low-fat products without needing to resort to artificial thickeners or gums,” said David Peters, business development, Biovelop, who explained that PromOat imparts none of the lumpy texture normally associated with oats, which makes it easy to impart the natural health benefits of oats without detriment to the end product. “Consumer awareness of the health benefits of oats is already very high and PromOat’s versatility enables dairy manufacturers to incorporate

those benefits into a wide range of foods and drinks not previously associated with oats.”

PromOat has already been successfully trialled in fermented low pH milk drinks, buttermilk products, low-fat cream cheeses and crème fraiche-type products.

Fortitech demonstrated its expertise in fortification and the creation of premixes with a bone & joint health ice cream, which combined calcium vitamin K1, magnesium, manganese and soy isoflavones and proteins in a creamy delight. Cargill had formulated low-fat yogurt and dairy desserts sweetened with its Truvia brand of stevia in combination with its bulk sweetener zeroes erythritol, which were very difficult to distinguish from the full-sugar controls. Chr Hansen picked up an Hi Europe Award for its lactic acid bacterium L fermentum PCC probiotic strain, which can be used in yogurts as well as in sports nutrition applications. And DSM Nutritionals picked up the overall Hi Europe Award for its Fruitflow ingredient for heart health. Suitable for use individually or combined with DSM Nutritional Products’ other nutrient offerings as part of the company’s Quali-Blends premixes, Fruitflow allows formulators to make an EFSA approved health claim for the promotion of healthy blood flow.

Further innovations for dairy applications will be covered in future issues of Dairy Innovation.





38 MARKETING www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Marketing watchRebranding

What was the reason for the rebrand?

The Isle of Man (IoM) Creamery has enjoyed steady growth over the last decade. However, a change in legislation on the island opened the door to products produced on the UK mainland being allowed in - bringing more competition. The concern was that if a growing number of islanders bought these imported brands, local companies could lose sales, with a consequence that jobs could be lost and - in the worst case scenario - the factory could be forced to close.

So with this threat, the island’s dairy farmers, employees and the board of the Creamery devised what was termed a ‘step up strategy’, designed to reclaim market share and to expand onto the mainland, into Europe and further afield.

What was the brief from Isle of Man Creamery?

The company invested in extensive market research - both qualitative and quantitative - in conjunction with the Isle of Man Department of the Environment, Food & Agriculture. What the research found was that there was a real depth to the quality of product - it was outstanding. But there was a need to create a real brand that would showcase the Creamery’s heritage and show the product range in a better light than currently and enable it to regain a market position both on and off the island.

The Creamery Executive Board

and the island’s government

endorsed the findings and agreed

the next step would be to appoint

a branding agency to create this

real brand. We were identified as

an ideal partner, partly because

we have very strong consumer

brand credentials and we

specialise in FMCG food and drink.

What steps were involved?

I spent a lot of time on the

island - listening, learning and

understanding all aspects of the

island history. I interviewed lots of

people, including dairy farmers,

buyers, creamery personnel, the

Government - together with

islanders, just trying to get a real

feel about the place. This helped

in finding a unique and compelling

story that would motivate and

engage with consumers and

that would be the foundation

to developing this

brand.

One of the things

about creating a

brand is trying to find a compelling and motivating

At this year’s International Cheese Awards, Isle of Man Creamery unveiled its rebrand and its new packaging. The new look - which stretches across the company’s product portfolio - followed extensive market research and was designed to invigorate consumer demand. The job of creating the rebrand fell to Edinburgh based creative branding agency threebrand. Dairy Innovation Editor Geoff Platt spoke to Managing Director Campbell Laird about the story behind the initiative.

story and then telling it well. We carried out research with focus groups on the island, in Ireland and the UK.

Branding is all about telling a story that is going to engage with the target audience. But you really need to know who your target audience is - which is why you have to do the research and get out and about among the people.

Two things came up - one was about the naturalness of the product and the integrity of the co-operative. The second was about the skills that have been passed down from generation to generation with a lot of the production process still being done by hand. For example the current master cheese maker at the Creamery learned his skills from his father who was a master cheese maker before him. I doubt very much you would get that type of personality within the massed produced mass market competition.

That continuity was also illustrated by seven sets of brothers who worked there, and a family of three generations - a grandfather, father and son who all worked at the Creamery. From all these came some great stories.

So for me it was all about the people, it was about skill - and it was about a quality, natural product.

What was the timescale?

Probably, with initial discussions, it was about 12 months. The last few months were all about the rollout - and there was quite an extensive portfolio to rollout.

I have talked about finding a story that will motivate and engage with the consumer. When you have got that story, you have to have a consistent message. And that has to be told in the packaging, the sales promotion, the presentations to retailers, PR,

advertising - every single part of it.

But also you want the workforce, the people on the island - everybody - to be ambassadors to buy into it so they all know what the story is all about and can tell it in a consistent manner.

Tell us about the photographs?

Because the story is all about real people, we made sure that every photograph that is used on any of packaging, on any of the websites, anywhere - the photographs have to have come from real island people who actually did exist. For example, on the cheeses we have got images of ladies who made cheese by hand, the traditional way, all those years ago.

If you go on the website there are lots of great images - real people, not models. And people gave us photographs from their mothers, fathers, grandparents and friends - and all from the island. The photographs are natural and true, not retouched in any way. We felt it was refreshing and that’s the way it should be.

What have been the reactions from the people in the supply chain, the farmers, the retailers and, most of all, the consumers?

I guess a big part of the success of the launch has been in the UK, where retailers Tesco and Morrison agreed to stock the brand. Findlay Macleod, Isle of Man Creamery Managing Director had meetings in Ireland and in the US where further listings were confirmed.

Giving your brand a new look

Campbell Laird





39MARKETINGwww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

The winner was the Heumilch campaign from Agrarmarkt Austria Marketing GmbH, Austria’s agricultural marketing body. Chief Executive Dr Stephan Mikinovic explained the campaign to delegates.

Heumilch - hay milk or pasture milk - is very important in Austria. There are 8,000 producers, accounting for 20% of milk production, compared to an average of 2% across the EU. In recent years, the amount of products made from milk from cows fed on silage has increased compared to those from hay milk.

Cows are fed fresh grass in the summer and dried grass in the winter - and the fresh grass contains essential herbs and hay. This guarantees the highest quality for milk and dairy products - in particular for fresh milk and cheese. These premium products have a positive impact on consumer health and well being, in particular because of the higher percentage of nutritionally enhanced substances such as Omega-3 fatty acids.

In the past each farmer and dairy produced their own branding, their own marketing, their own designs for heumilch labels. The need was for a unified approach - hence this campaign.

Austrian consumers spend one third of their food budget on dairy, so there was a good base to work from. The new campaign was aimed generally at households that had a high awareness of quality and that wanted regional and high class products and who were prepared to pay a higher price for such goods. And in particular it focused on women, aged 25 to 50 years, with a higher education and a good income.

Hay milk products are listed in most Austrian retail markets throughout the year, but there was no special branding on these products. The benefits of hay milk products were insufficiently communicated to the consumer. The target audience was not informed about the benefits concerning health and taste. Consequently, there was no real attention paid to hay milk products.

Top of mind

There was a need to position hay milk products in a clear and unique way, to increase awareness - making them ‘top of mind’.

Each year the International Dairy Federation presents the Yves Boutonnat Trophy to the best generic dairy campaign, chosen by members of the International Milk Promotions (IMP) group. Three finalists gave presentations about their campaigns during the Marketing conference at the IDF World Dairy Summit in Auckland.

The objectives of the campaign were identified: to create sustainability for hay milk producers in order to contribute to the conservation of the cultural landscape, to increase the variety of hay milk products and to increase the awareness, preference and buying intention within the target group.

The initial part of the campaign - in 2008/2009 - was to build-up product image, to establish hay milk within the target group and to generate brand awareness.

In 2010 and going forward, the objective has been consolidation of product image, to boost brand awareness and sympathy and to generate preference and increase buying intention. The strategy was to continue with a product oriented campaign using broad communication channels and further integrate

below-the-line, online and other direct communication tools. The campaign used TV, print and poster advertising, point of sale, PR and online activities.

Hay milk campaign wins Yves Boutonnat Trophy

The two other finalists were from Canada and France. The ‘Get Enough’ campaign from Dairy Farmers of Canada was designed to increase consumption of milk products (milk, yogurt and cheese) so consumers reach their recommended daily amounts. Research has shown that two-thirds of Canadians - across all age groups and in all areas - are underconsuming milk products. ‘Get Enough’ aimed to present milk products’ unknown benefits, prompt underconsumers to realise they may be underconsuming, and convince them that they should modify their behaviour.

The other finalist was the 3-a-day advertising campaign from the French Dairy Council - Centre National Interprofessionnel de l’Economie Laitière (CNIEL). In France 95% of consumers know the ‘5-a-day’ food reference for fruit and vegetables, but only 30% are aware of the official ‘3-a-day’ reference for dairies. Because these references are officially stamped by the French Health Authorities, they represent a very powerful advice for the consumer. However, more and more French consumers are influenced by the anti-milk message. So there was a need to counterbalance those negative ideas, by highlighting the positive official health recommendation for dairy.

Agrarmarkt Austria Marketing GmbH Chief Executive Dr Stephan Mikinovic receives the Yves Boutonnat Trophy from Winnie Pauli, Director of Diet and Health at the Danish Agriculture and Food Council. Winnie is a member of the IDF Standing Committee on Marketing and is currently President of the International Milk Promotion Group





40 MARKETING www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Marketing watch

A chameleon stars in a TV ad for Froop yogurt from Germany’s Müller dairy. The ad supports the launch of the exotic fruit flavoured mango variety and the TV commercial sees the lizard fighting his way through a jungle of garden plants. As he reaches the pot of Froop yogurt he changes colour to jungle green and mango yellow. The ad was devised by the Ferman creative agency Scholz and Friends.

Lizard launch for Müller TV ad

The US National Milk Moustache ‘got milk?’ campaign has been celebrating 15 years of milk-drinking athletes, actors, models and musicians donning the famed milk moustache. To help celebrate its Quinceañera, the 15th birthday celebration that many Latina girls celebrate, the campaign teamed up with Latin actress, singer and Nickelodeon star Victoria Justice to spread the word that milk is an easy way to get calcium, protein and other nutrients teens and tweens need to help them look and feel their best.

“What you put in your body affects how you look and feel, and with such a busy schedule, I try my best to make smart choices, including incorporating nutrient-rich milk in my diet, eating right, and staying active,” said

National Milk Moustache ‘got milk?’ campaign celebrates 15 years

17-year old Justice. “I’m thrilled to be celebrating the ‘got milk?’ campaign’s 15 year anniversary - it sends a healthy message to teens and tweens that drinking milk is an easy way to look and feel their best for big events like quinces and sweet sixteens.”

A new high profile campaign aimed to promote the consumption of milk among young people has been launched in the UK. Milk in Action is a three year EU funded campaign and is a collaborative venture between The Dairy Council (England & Wales), the National Dairy Council (NDC) in the Republic of Ireland and The Dairy Council (Northern Ireland).

Sporty adverts kick start Milk in Action

The campaign aims to change the attitudes of 12-20 year old towards milk. A key part of the campaign will be a series of contemporary adverts that appeal to young people. These will feature images of young,

sporty and dynamic people drinking milk. It aims to engage young people in physical activity in the run up to the London 2012 Olympics and to encourage them to consider milk as a healthy and ‘cool’ drink in every sense.

The campaign is being supported by London 2012 Olympic hopefuls Beth Tweddle, World Champion gymnast and BMX World Champion Liam Phillips. Beth and Liam, whose favourite drink is milk, declared their support of the white stuff and urged Britain’s young sports enthusiasts to ‘Milk it for all its worth’.

DairyNZ said its recent Go Dairy campaign is a significant change in direction and is aimed at showing New Zealanders how much they have to be proud of in the country’s dairy industry. “Previously our ads have been designed to attract new people to dairy farming, but this year we were telling the great story we have, showing New Zealanders that we lead the world when it comes to dairy,” said DairyNZ CEO Dr Tim Mackle.

Research has confirmed New Zealanders are becoming increasingly disconnected with their rural heritage. Go Dairy is about reversing that trend. “Many people don’t know where we sit on the world scale or appreciate the fact that New Zealand dairy products are exported to more than 140 countries, that we’re

New Zealand dairy campaign signifies change in direction

responsible for some world-leading innovations.”

The campaign, created by communications agency Naked Communications and advertising agency Josh&Jamie, has run on television and also in newspapers and magazines. The television commercial tells the story of a Kiwi dairy farmer who goes round the world on his quad bike and returns to New Zealand with the realisation that while other countries may have more land, money, people, rain and sun than us, when it comes to dairy, New Zealand is the world leader, feeding over 100 million people and accounting for a third of the world’s dairy trade.





41TECHNICAL NEWSwww.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Dairy techAs part of the International Dairy Federation World Dairy Summit in Auckland, New Zealand, there was an associated

exhibition area. Here there was a global presence from a wide range of exhibitors showcasing and demonstrating their latest products, technologies and services of interest to the global dairy industry.

Dairy Innovation took a look at some of the companies on show.

pastes, slurries, yogurts and even liquids.

Beca is one of the largest employee-owned engineering and related consultancy services companies in the Asia-Pacific region. Beca supplies engineering and related consultancy services to many markets including the food and beverage industry. Among its dairy projects in 2010, Beca has been working with Fonterra at its Kauri plant. Fonterra and Beca have combined their wastewater treatment plant (WWTP) knowledge to establish the plant operating requirements (pictured, below left).

The Kauri factory generates up to 3600m3 of wastewater every day. The factory has a dissolved air flotation plant as primary treatment to remove fats and grease before the effluent is irrigated onto farmlands. To provide all year round, robust wastewater treatment and disposal, Fonterra installed a biological WWTP which operates when irrigation is not possible and produces a treatment effluent quality suitable for discharge into the local river. To protect the river quality in the receiving environment, the treatment plant will discharge to the river only when the flow rate in the river exceeds the minimum flow rate

requirements. The flexible operation of the plant will also help to reduce the power consumption for aeration when irrigation is possible.

RCR Energy Systems is a leader in the provision of fired heat and power plants. Specialising in the design, manufacture and construction and whole-of-life support of complete energy systems for any fuel or heat transfer medium, the company had on show several examples of projects it has carried out for Fonterra over the years. These included the supply of emission control plant to reduce the flue gas particulate emissions from two 32 MW coal fired boilers at the dairy company’s giant Edendale milk powder plant.

RCR also supplied two 43 MW Babcock & Wilcox Towerpak boilers (pictured below) when Fonterra installed a third milk spray drier - requiring additional high pressure process steam - at its Clandeboye site. And a similar boiler at the Te Awamutu plant. Here the brownfield replacement was very much a shoehorn exercise as the new boiler was to fit in the same location as the existing boiler reusing key ancillaries coal delivery, ash handling and baghouses.

Egemin Automation Inc is a leading provider of Automated Guided Vehicle Systems (AGVS). Among the case studies it featured in Auckland was a project with Gmundner Milch - an Austrian dairy company specialising in cheese and milk products. Having experienced recent rapid growth, Gmundner decided to engage Egemin for automating the transport of its cheese in the Gmundnen production facility. The cheeses go through a specific ripening process according to a predefined recipe for each cheese variety. This is done by storing the cheese in special cooling rooms. After some time, the cheese is relocated to a second cooling room with a different controlled environment.

Egemin’s E’gv system consists of two straddling FLVs (Fork Lift Vehicles) that take care of the cheese transport between the warehouse, smearing machines and drying rooms (pictured above). The cheese itself is placed on wooden plates that are stacked in a stainless steel frame. Each frame may weigh up to 2,000kg and can be stacked on top of another frame in the two-level warehouse. The E’gvs transport new cheeses to the cooled warehouse and bring ripened cheeses to the smearing machines.

Perten Instruments (trade stand pictured, right) offers a range of lab equipment that is, according to the company, extremely versatile. They can be used to aid product development, formulation, and optimisation; used to measure ingredients before they enter your process; and used to improve efficiency, productivity, and reduce costs - while improving quality.

Among the Perten instruments featured was a Rapid Visco Analyser. This is a flexible heating, cooling and variable shear viscometer for process simulation of recombined products such as sweetened condensed milk, yogurt, cream cheese and ice cream. It will assess batch differences in skim milk powders, whey protein concentrates and protein isolates that affect fitness for purpose and it will assess the rehydration rate of rennet caseinate. The RVA can be used as a Miniature Pilot Plant for processed cheese manufacture and meltability.

Other instruments included the DA 7200 NIR Dairy Analysis System. This piece of kit will measure compositional information in 6 seconds. It will analyse for components such as Moisture/Total Solids, Protein, Fat, pH and others simultaneously with little or no sample prep or clean-up. It analyses cheeses, powders,

at the World Dairy Summit





42 FINAL WORD www.foodbev.com/dairyIssue 34 - December 2010 · January 2011

Social media

Tools and platforms such as Facebook, Twitter and YouTube have radically shifted how brands and individuals communicate with each other. Whether you are looking to get your information out to interested parties or have a two-way dialogue with them - these tools are being used, and being used a lot.

Some context? Facebook (in the UK) has more than 30 million users, Twitter - about five million. Around the world both are in the hundreds of millions [comScore October 2010] and keep eyeballs fixed on them. An average Facebook user will spend six hours per month on the networking channel - the same for the top 10% of Twitter users. Dairy brands need to

Social media has seen phenomenal growth in recent years in the business sector as

more and more businesses have sought to make use of the medium to raise brand

awareness and communicate with their target audience. And while some embrace it

with ease, others are nervous about trying to understand this modern phenomenom.

Kindred Agency Senior Digital Strategist George Coates tells Dairy Innovation how

the dairy industry can make use of social media.

group and start a dialogue. Ask questions, answer questions, post content that is relevant and don’t sell all the time (think 80:20 - 80% of what you do will not be about selling) - become a resource and make sure you have something branded to send them to. Facebook ads can be a very cheap but effective way of targeting people early on.

3) Keep branding consistent. Spend some time on Facebook - information spreads quickly and content is easy to source and upload so communities can form quickly. Seeing recognised logos, images and messaging etc will add to your credibility and recognition across platforms as a trusted brand.

4) Keep momentum and set realistic targets. Depending on your strategy and whether you are starting from scratch or building on existing tools, results will vary dramatically. For example, slow and steady worked incredibly well for the ‘make mine Milk’ campaign. In year one, we have built a +25,000 following with minimal spend. It is time well spent talking to your fans and creating advocates. Take a leaf out of Lady Gaga’s rulebook - give the collective a name - Gaga has her ‘little monsters’, we call the ‘make mine Milk’ people ‘milkers’ - they enjoy being part of a larger group.

5) Tone. Be mindful of how you engage with the public - it varies across all our branded communities here at Kindred - there are few constants. Be mindful of your brand values and what your conversational style should be. Be clear on the positioning of your posts

ask themselves - are they disadvantaging themselves (or even adding to brand distrust) by NOT being on these sites, even in a small way.

That sounds scary, right? It is difficult not to get overwhelmed, but if you have clear and realistic objectives it gets a lot less scary, very quickly. Be wary of those looking simply to get you a high following/friend count - this is not the objective. The objective is to reach the right people who will push you and your brand forward. What others say about you is infinitely better than you broadcasting to a large but unengaged collective. Here are the top tips to make sure you put your best foot forward with social media:

1) Stop and strategise. What are your objectives - higher sales from new customers or existing ones? Product research? To reconnect with past customers? There are hundreds more - ask your target group what sites and technology they use but at all times focus on two themes: will the activity save you money or make you money? Be honest with yourself about what content you have and how much time you have to spend on this activity. Put a plan together of what events you have coming up - make the content if you need to. Like it or not, eyes are not staying on brand websites. Without content and time you are unlikely to see the results you desire.

2) Find the right people who care about your brand and your objectives. Do a Google search for bloggers, journalists and other interested parties, find fan pages about your chosen

so messaging cannot become misconstrued in any way.

This is, however, only one side of the story. You have covered online but what about offline? You’ll meet people everyday that can help you spread the word or become part of the community - help them help you! Have cards created (moo.com create great ones at very low cost) with the URLs to the social media accounts you create. Think about events - can you put some cards on other people’s tables? Can you make them personal in anyway? Another great tool is a Flipcam - these are small camcorders that are HD-capable and can also take still photos - great to capture event footage interviews and vox pops.

Social media tools and platforms are begging to be used - set realistic goals and targets, have a firm but flexible strategy and you will be on the road to maximising the potential these platforms have to offer.

George Coates

How the dairy industry can make use of social media

Kindred Agency operates as a communications agency, offering advertising, public relations, branding and design, digital, and social media services. Kindred is responsible for the UK’s Make Mine Milk campaign - see page 40.





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Issue 34 | Dairy Innovation

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Transcript of Issue 34 | Dairy Innovation