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Mar 25, 2011

All-Natural, Affordable Indulgences Among Top Trends Driving Retail Sales

PrintAll-Natural, Affordable Indulgences Among Top Trends Driving Retail Sales  

By By Jim Dudlicek

Five key consumer trends will guide successful products in the coming year, and milk and cultured dairy products are no exception.

That was the basis of a presentation by Mintel’s Lynn Dornblaser this past week at the Milk and Cultured Dairy Products Symposium, held near Chicago by the International Dairy Foods Association.

Launches of new dairy-based food products have been down of late, due to two main reasons, according to Dornblaser: a rough economy and SKU rationalization by grocery retailers. “I go to stores for a living, and I can’t figure out what’s not there,” said Dornblaser, director of CPG trend insights at Chicago-based Mintel. “Retailers are getting rid of poor performers, and you’re not noticing.”

Still, new dairy products entering the market stand a good chance of success if they follow one or more of the following trends:

- Redefining Natural. There’s a lack of understanding by consumers about what “all natural” really means, Dornblaser noted. As such, product developers are putting a stronger focus on products’ inherent goodness. “Dairy’s in a good spot for this,” she said, noting as an example Haagen-Dazs Five, a line of ice cream containing only five ingredients. “All the ingredients are easy to understand,” Dornblaser noted, adding that the product routinely outperforms all other Haagen-Dazs lines. This product also has 30 percent less fat than regular ice cream. “That’s because Haagen-Dazs Five is the old Haagen-Dazs Light repackaged and repositioned,” Dornblaser said. “A brilliant piece of marketing.” She also pointed to the “meteoric sales” of Greek-style yogurt as a successful product known for its goodness qualities: low fat, creamy and high in protein.

- Blurring Categories, such as dairy-based cereal drinks, which are popular in Latin America. This presents cross-promotional opportunities.

- Econo-chic. Small indulgences that are inexpensive but tailored for adult tastes are hot right now, Dornblaser said. “There’s a lot of potential for flavored milks, more than just strawberry, chocolate and vanilla for kids,” she said.

- New Retro. “More companies are looking to the past for packaging and commercials, to make it relevant for consumers today,” Dornblaser said, citing a retro Breyers ice cream campaign that ran during the popular 1960s-based TV show “Mad Men.” Other examples: Pepsi and Mountain Dew “throwbacks” with vintage packaging and cane sugar; milk in glass bottles; Kroger’s Micro Shakes.

- Cradle-to-Grave Initiatives. Stretching brands up and down the age spectrum, such as carbonated Juicy Juice in slim cans.

Source: Progressive Grocer








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