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Milk Category Review
- 1. A LOOK ATFACTORS AFFECTING THE MILK MARKET
- 2. AN IN-DEPTH VIEWOF CONSUMER INSIGHTS Overview Trends
- 3. 2014: Consumers Insights Source:Mintel The big change in 2014 is the progression of “other than soy” based drinks, i.e. made from rice, nuts, grains and seeds Many buyers are not purely motivated by dietary restrictions, such as vegan diets and lactose sensitivity to purchase Flavor and health benefits are leading reasons to choose non-dairy milk
- 4. Milk and Non-DairyMilk Consumption Source: Mintel 42% 48% 22% Purchase Non-Dairy Milk Prefer the Taste of Non-Dairy Consumers have Lactose sensitivity In 2014, innovation in dairy-free milk – including soy, rice, nut, grain and seed based drinks – increased by 29% globally Summary: • Huge opportunity for launching non-dairy products based on taste and health platform • Some consumers don’t enjoy the taste and texture of dairy milk, describing it as too heavy and cloying in the mouth • Almond Breeze heavily focuses on the taste experience – describing it as ‘extra-special treat’ with a creamy smooth texture that you don’t need to be lactose intolerant to enjoy
- 5. Who is PurchasingNon-Dairy Milk and Why? Source: Mintel January through November Female, age 55+ Male, age 18-34 Male, age 35-54 Millennials are leading the trend toward non-dairy milk, and believe non-dairy milks are higher in protein, calcium and other vitamins and minerals
- 6. Consumers Are WideningTheir Milk Repertoire To Non-Dairy Milk • 14% of dairy-free drinks launched in 2014 contained almond, compared to virtually none 5 years ago • Coconut milk is also on the rise: the number of food and drink products containing coconut milk increased 56% between 2013 and 2014 • Purchase overlap between dairy and non-dairy milk suggests that respondents buy multiple varieties of milk for different needs or occasions, offering opportunities for blends or other innovation Almond and coconut milk are fast growers in the non-dairy segment Source: Mintel January through November
- 7. Fairlife Boosts Protein,Calcium And The Price Of Milk Launch Information • Launch Date: Feb 2015 • Manufactured by: Coca-Cola • Retailers: Nationwide i.e. Mariano’s, Kroger, Wal-Mart, Target and Meijer • Avg. Price for 52oz: $3.77 Fairlife Milk vs. regular Milk: • 50% more protein • 30% more calcium • ½ the sugar
- 8. a2 Milk –The Milk That Might Change Everything Launch Information • Launch Date: April 2015 • Location: California • Retailers: Safeway , Whole Foods and Kroger • Ave. Price: $4-4.50 A2 Milk vs. regular Milk: Regular Cows’ milk contains A1 and A2 proteins, and for some A1 may cause side effects such as bloating, nausea, gas and diarrhea. a2 Milk comes from specially handpicked diary cows that produce A2, so it may be gentler on your stomach
- 9. Alternative Milk NutritionalChart vs. Whole Milk per 1 cup Almond Coconut Flax Hemp Rice Soy Cashew Milk Whole Milk Calories 40 552 25 60 45 90 25 146 Total Fat 3.58g 57g 0g 6g 2g 3.5g 0g 8g Saturated Fat 0.275g 51g 0g 0.5g 0g 3.6g 0g 5g Iron 0.72mg 0.36mg 0mg 0mg 0.48mg 0mg 0.36mg 0.7mg Cholesterol 0mg 0mg 0mg 0mg 0mg 0mg 0mg 24mg Sodium 5mg 36mg 80mg 25mg 135mg 95mg 160mg 98mg Carbohydrate 1.4g 13g 1g 10g 10g 9g 1g 13g Dietary Fiber 0.8g 5g 0g 0g 0g 1g 0g 0g Sugars 0.34g 8g 0g 6g 6g 7g 0g 13g Calcium 45% 45% 30% 46% 30% 45% 45% 33% Protein 1.51g 5g 0g 2g 1g 6g 0g 8g Cashew Milk
- 10. In Summary Soy milk:High in protein but more expensive and large amounts of soy have the potential to alter menstrual cycles in women, and stimulate breast cancer cells Coconut milk: Easily digestible, antifungal, and antiviral. High in vitamins and essential minerals magnesium, potassium, and iron Hemp milk: Less common than other milk alternatives, and that can make it harder to find. Rich in nutrients and anti-inflammatory. Almond milk: High mineral, vitamins, and healthy fats (monounsatured) Flax milk: many minerals and nutrients, but contains phytoestrogens Rice milk: High in carbohydrates and sugar, and low in protein and fat Cashew milk: Good source of healthy fats, copper, manganese, magnesium, phosphorus, iron, and zinc
- 11. New Nut Milk- Pecan Milk “Homemade Pecan milk is a great dairy-free alternative and is also very cost effective comparatively to buying store bought nut milks” -Shelley Alexander from A Harmony Healing Health Benefits: • Contains Omega-3 fatty acids • Contain 20 grams of fat • 3 grams of protein and 4 grams of carbs • 3 grams of fiber • High in mineral - magnesium and Copper
- 12. AN IN-DEPTH VIEWBASED ON CURRENT TRENDS Milk Category Overview
- 13. Milk Market Share– 2013 vs. 2014 and 2015 YTD 65% 63% 62% 26% 27% 28% 4% 4% 4% 3% 4% 4% 2% 2% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 Market Volume Share 2014 Market Volume Share 2015 YTD Market Volume Share Milk Market Share All Other * ALMOND MILK FLAV MILK/ EGGNOG/BUTTERMILK WHOLE MILK SKIM/LOWFAT MILK *All Other includes Coconut Milk, Soy Milk, Kefir, Milkshakes/Non-dairy drinks, and Milk Substitutes Skim/Low-fat Milk has given up share to Whole Milk and Almond Milk in 2014 Same trend in 2015 YTD totals Source: IRI Calendar Year 2014 YTD 2/22/15 -2% 1% 1% -1% 1% =
- 14. 58% 69% 70% 36% 25% 22% 4%4% 4% 1% 1% 3% 0% 20% 40% 60% 80% 100% 120% 2013 Market Volume Share 2014 Market Volume Share 2015 Market Volume Share Alternative Milk Volume Share MILK SUBSTITUTES - ALL OTHER COCONUT MILK SOY MILK ALMOND MILK Milk Alternates – Share Shift 2013 vs. 2014 and 2015YTD 13% -11% Soy Milk has given up share to Almond Milk Coconut and All Other Milk Alternatives market share remain the same Same trend in 2015 YTD 1% -3% Source: IRI Calendar Year 2014 YTD 2/22/15 *Milk Substitutes – All Other includes Goat Milk, Flax Milk, and Lactose Free Milk
- 15. Alternative Milk VolumeShare vs. Growth - 2014 Overview • Overall Alternative Milk increased by 17% compared to prior year • Private Label represent 13% however it increased by 28% compared to prior year • Blue Diamond is the fastest growing brand in the category Source: IRI Calendar Year 2014 7% 41% 28% 12% -16% 272% -50% 0% 50% 100% 150% 200% 250% 300% WHITEWAVE FOODS COMPANY BLUE DIAMOND GROWERS PRIVATE LABEL TURTLE MOUNTAIN 8TH CONTINENT CALIFIA FARMS Volume Share vs. Growth % Volume Share YOY % Cat Change
- 16. Lactose Milk VolumeShare vs. Growth - 2014 Overview • Overall Lactose Milk increased by 7% compared to prior year • Private Label represent 24% however, it increased by 13% compared to prior year • Horizon Organic represent 2% however, it increased by 35% compared to prior year Source: IRI Calendar Year 2014 6% 13% 35% 16% -42% 8% -10% -7% -8% -54% -60% -40% -20% 0% 20% 40% 60% 80% HOOD LACTAID PRIVATE LABEL HORIZON ORGANIC ORGANIC VALLEY SMART BALANCE DARIGOLD SHAMROCK FARMS CALCIUM PLUS KEMPS WHITE WAVE LAND O LAKES DRY EAS SPECIAL REQUEST SKIM PLUS Volume Share vs. Growth % Volume Share YOY % Cat Change
- 17. Almond Milk VolumeShare vs. Growth - 2014 29% 41% 105% 272% 107% -5% 28% 0% -50% 0% 50% 100% 150% 200% 250% 300% WHITEWAVE FOODS COMPANY BLUE DIAMOND GROWERS PRIVATE LABEL CALIFIA FARMS LLC HILAND DAIRY FOODS CO LLC TURTLE MOUNTAIN INC. PRAIRIE FARMS DAIRY OAKHURST DAIRY Volume Share vs. Growth % Volume Share YOY % Cat Change Overview • Overall Almond Milk increased by 40% compared to prior year • Private Label only represent 10% however it increased by 105% compared to prior year • Two vendors dominate the segment Whitewave - 48% and Blue Diamond – 40% Source: IRI Calendar Year 2014
- 18. Almond & SoyMilk Average Price - 2014 Source: IRI Calendar Year 2014 & $3.12 Private Label $2.89 $0.23 $3.48 Private Label $2.91 $0.57 Almond 64OZ Almond Milk Avg. Price Per Unit Soy 64OZ Soy Milk Avg. Price Per Unit
- 19. AN IN-DEPTH VIEWBASED ON CURRENT TRENDS Organic Milk Overview
- 20. Success Story: Kroger “SimpleTruth, Kroger Co.’s store brand for natural and organic foods, reached $1.2 billion in sales in 2014 after two years on shelves” - Kroger spokesman The Organic Conversion “Milk is often a consumer’s first organic food purchase” - The Wall Street Journal Organic Milk Trends Source: IRI Calendar Year 2014 Source: Mintel January through November Organic Milk is the gateway to the rest of your organic program It takes an entire Organic program (multiple categories) to be successful
- 21. Organic Milk VolumeShare vs. Growth - 2014 10% 1% 7% 2% 8% 13% -2% -3% 7% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% PRIVATE LABEL WHITEWAVE FOODS ORGANIC VALLEY STONYFIELD FARM STREMICKS HERITAGE FOODS TURTLE MOUNTAIN CLOVER STORNETTA FARMS KEMPS SHAMROCK FOODS LIFEWAY FOODS Volume Share vs. Growth % Volume Share YOY % Cat Change Overview • Overall Organic Milk Category increased 5% compared to prior year • Turtle Mountain shows a 8% growth compared to prior year • Clovers Stornetta shows a 13% growth compared to prior year • Private Label represent 47% of the Organic Milk Category and shows 9% growth Source: IRI Calendar Year 2014
- 22. Organic Milk 64ozAverage Price - 2014 $3.19 $4.08 $4.19 $4.43 $0.89 $0.12 $0.23 Source: IRI Calendar Year 2014 Organic 64OZ Organic Milk Avg. Price Per Unit Very healthy Private Label spread
- 23. SUGGESTIONS BASED ONCURRENT TRENDS How to Improve Milk Sales
- 24. Market to theMillennials Developing: Focus on developing non-dairy products based on taste and heath platform Consider in-store sampling to influence consumers perception Advertising: Ads should be targeted toward Millennials as they are leading the trend toward non- dairy milk Focus on protein, calcium and other vitamins and minerals claims 42% 48% 22% Purchase Non-Dairy Milk Prefer the Taste of Non-Dairy Consumers have Lactose sensitivity