Friday, September 13, 2024

The Future of Fresh Includes Real Dairy. Real is Back.

 

It’s Friday the 13th! Be safe! Don’t walk under a ladder! Watch out for black cats crossing your path And, keep up the great work selling fresh, convenient dairy foods. 


First, did you know that Real Dairy Milk is  fueling innovation in the esports nutrition space? The Milk Processor Education Program (MilkPEP) is working to get milk marketers to integrate milk into the gaming space as the “performance drink of gamers,” especially with younger consumers. Read an article I wrote on this topic for Food Business News HERE.

Earlier this week, Deloitte published the sixth edition of its annual assessment of the state of fresh food. You can access “A fresh (food) take on grocery convenience” HERE. Deloitte’s findings are all about grocers bringing “fresh convenience” to consumers as they plan their meals, choose where to shop and select their food. The survey was conducted in May and June of 2024. Responses came from 100 U.S.-based grocery retail executives from organizations with at least $1 billion in annual revenue and 2,000 U.S. consumers.

Many of the findings complement the latest “got milk?” campaign from the California Milk Processor Board called “Real is Back.” You can link HERE to the website and view the two one-minute clips. I promise they will put a smile on your face. 

“Where there’s milk, there’s togetherness. And nothing nourishes more than a Real moment of connection. Real is back. Happiness is back.”


 

Key takeaways from the Deloitte report are:

  • Consumers seek simplicity when it comes to food purchases. Fifty-two percent of respondents say they value convenience now more than they did in the past. This sentiment is more prevalent among millennials (57%) and Gen Z (61%), indicating a lasting trend.
  • Similarly, grocers recognize the value of easier options, as more than eight in 10 (84%) agree successfully competing on convenience is key to increasing unit sales volume.
  • More than half (53%) of consumers surveyed say that figuring out “what’s for dinner” is one of their major pain points, and 44% would regularly buy from a grocery store that could help them with meal planning.
  • Grocers are recognizing the importance of fresh food, as more than half (52%) of grocery executives expect fresh to be their most strategically important department over the next one to three years. The produce, deli and meat departments lead this charge.

 Dairy products need to be in these places. Get dairy dips and dressings into the produce department. What about sour cream by the baking potatoes? Culinary cooking butters can be sold in the packaged meat case. The deli department also tends to be a grab-and-go lunch destination. All types of single-serve dairy products have a place here.

  • Nine in 10 U.S. consumers say fresh food makes them happy, and two-thirds (66%) would pay a premium for fresh food. On average, shoppers say they would pay 22% more for fresh over the alternatives, such as canned, frozen or other options. (The only canned dairy product I am aware of is Cougar Gold Cheese produced at the Washington State University creamery. It is delicious!)

Dairy marketers need to market the freshness of Real Dairy. Most dairy products are already convenient.  

  • When it comes to deciding between either fresh or convenient food, ease often wins. Eighty-two percent of shoppers say convenience drives their fresh food decisions. In addition, two-thirds (67%) of consumers say that on busy days, they buy more convenient food items, even if they are not healthy (or fresh).

All of this must be taken into consideration by dairy marketers as grocery retailers are working to navigate a new wave of change that is challenging their conventional business models. Grocers understand the value of convenience as 85% say they are making significant investments to increase it. 

They want to stock fresh, convenient dairy foods. They are a great value and, well, you know the rest. They are delicious and nutritious.  Be safe! Happy Friday the 13th!



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