Dairy Innovation Health and Wellness Contest Picks Winners at Future of Dairy Expo

 

The Real California Milk Excelerator competition returned for a sixth year. Hosted by the California Milk Advisory Board (CMAB), in partnership with innovation advisory VentureFuel, this year’s innovation competition was for health and wellness startups. 

Last night, Nov. 14, 2024, eight judges (myself being one of them) selected four of the seven finalists to move onto the second phase of the contest. 

The four companies and their products:

Drink Todo is a high-protein, high-fiber breakfast smoothie designed to provide a convenient and nutritious solution for busy lifestyles. The shelf-stable meal replacement features 25 grams of milk protein and 6 grams of dietary fiber in every 12-ounce bottle. It is also enriched with essential vitamins and minerals.

Pluff is a high-protein dessert primarily made from a combination of Greek yogurt, heavy cream, cottage cheese and whey protein blended and whipped together. It’s a brand new concept unlike anything in the marketplace. 

Projo is an instant coffee blend of organic Arabica coffee, marine collagen, organic coffee fruit extract, digestive enzymes and 100% whole milk. This coffee boosts energy and supports health and wellness. A ready-to-drink version is in the works

Smearcase is FroCo, a trademarked name for the world’s first cottage cheese-based frozen dairy dessert. The product is infused with collagen and provides 40 grams of dairy protein per pint. Smearcase was the People’s Choice winner. 

The annual competition, which focuses on accelerating value-added products using real milk, features an immersive mentorship program and access to non-dilutive capital and an innovation ecosystem for brand growth. The winners made their final pitches at the end of the Future of Dairy Expo, which included a number of panel discussions on hot topics in dairy innovation along with an expo floor featuring products tastings. 

The Real California Milk Excelerator is the largest global dairy accelerator. The program is open to innovative companies producing products made with at least 50% real milk or dairy. This year, these products had to leverage the benefits of dairy to promote health, wellness and general well-being. This year’s competition offered a value of up to $500,000 in prizes and program value for products that introduce novel applications in any form and drive utilization of Real California dairy.

“Innovation is the lifeblood for all industries. Our investment in the Excelerator and the California Dairy Innovation Center continues to introduce new products and innovators/founders into the pipeline and relationship with Real California Milk,” said John Talbot, CEO of the CMAB (pictured above, right). “With an overall market value of more than $5 trillion, the health and wellness focus make sense and allows us to hone in on startups that are leveraging the natural goodness of milk and its myriad benefits. Wellness for consumers is an everyday pursuit – whether physical or mental – and real dairy delivers. This is an exciting time to create products and we look forward to connecting with founders to take them to the next level.”

Each of the seven finalist of the 2024 cohort had access to a group stipend and a robust network of resources to refine and scale their product and business. They also participated in a three-month immersive CMAB/VentureFuel Mentorship Program, consisting of elite counsel from successful founders, investors, leading corporate executives and experts across design, marketing, sales, manufacturing, distribution, farming and processing industries. 

The four winners received $30,000 each to grow and expand their product in California and have access to an Investor/Buyer Virtual Roadshow. One participating company will unlock an additional $100,000 grand prize by establishing their presence in California and exhibiting the most promising growth within 12 months of the final competition. 

From the 2023 cohort, that winner is Petit Pot, a French-style dairy dessert sold in paper-based cups that are made with more than 80% sustainable/renewable fiber.    

The other three finalists from the 2024 cohort are: 

Stellify, which is a low-calorie, functional, dairy-based energy and wellness shot made with reduced-fat lactose-free milk for lactose-intolerant individuals. It features natural caffeine from coffee cherry, theobromine and L-theanine. 

TruJoy is an elevated frozen Greek yogurt made with simple, natural and timeless ingredients. It boasts a robust nutritional profile, with protein and probiotics, as well as a clean label.

Voyager Milk is the only USDA organic dried whole milk for toddlers. It comes in a convenient stick-pack format for on-the-go usage.

Congrats to all participating companies. They are all winners in my eyes!

Foods for Females in 2025

 

A number of associations and research authorities are forecasting “Foods for Females” to thrive in 2025 (unless this right is taken away). Both dairy and non-dairy concepts will have an important role in the well-being of women.

Globally, the trend leads with nutrition and supplements for managing menopause. This was very present at the recent SupplySide West expo in Las Vegas.
Google searches for “menopause” are up 52% since 2019. Products catering to this population are expected to be worth $24.4 billion globally by 2030, according to Circana data. 

An estimated one billion women worldwide are currently in the menopausal stage of life, which can be a multi-year struggle for many. Fortunately, the subject is no longer taboo, or at least for now. 

Declining estrogen levels affect muscle mass, which makes complete and high-quality protein consumption very important. Protein may also improve bone health.

According to a 2017 study published Osteoporosis International, women over 50 who consumed dairy protein daily had an 8% lower risk of hip fracture, and those who ate beans and soy reduced fracture risk by 12%. Both dairy and soy are high-quality, complete proteins. 

Dairy products also provide calcium to strengthen bones and protect them from fractures. They also provide many other key nutrients for healthy aging, including phosphorus, potassium, magnesium, and vitamins D and K.

The same study showed that people who regularly eat dairy products have higher bone density than those who do not. Good dairy options include low-fat milk, yogurt and cheese. 

Here’s the deal with menopausal women. Most women are only able to cite a few of the almost 50 symptoms that are signs of menopause. These are the signs they feel, such as night sweats and rapid heart rate. There’s so much more going on inside that science has learned in recent years and food and supplement scientists have the opportunity to formulate foods to assist from the inside out.

Women are looking for relief from their symptoms. There’s a great deal of opportunity for products in this space. One that comes to mind is a no-sugar-added, high-protein lavender-flavored kefir.

Lifeway Foods recently rolled out such a product. One of the 10 new flavors in its 8-ounce Organic Kefir line is Wild Blueberry Lavendar. The entire line is lactose-free, as consumer demand for lactose-free dairy products is predicted to grow rapidly over the next five years. The new line is loaded with high-quality bioavailable nutrients, including protein, calcium and 12 live and active probiotic cultures. The new line was fueled by Lifeway CEO Julie Smolyansky, a long-time friend of mine and an inspirational female leader.

The Foods for Female trend is not just for over-40 women. It’s for young ladies, too. 

The Specialty Food Association (SFA) Trendspotter Panel provided a sneak peek at the future of food this past week. The group identified Girl Dinner 2.0 as a growing trend for 2025. 

“Snacking is here to stay, with freestyle format and flavor combinations infusing new energy into the red-hot category. Consumers will become even more flexible with how they eat in 2025,” predicted Trendspotter Melanie Bartelme, who is also the associate director for Mintel Food & Drink, and another long-time friend of mine. “Most U.S. consumers eat traditional meals every day, but snacking is on the rise. Savvy food and drink brands will help consumers see the products they make as suitable for however consumers choose to eat them. Think pizza cupcakes for lunch, jianbing for dinner and dumplings as a snack.”

Who does this more than anyone? It’s females, especially educated multi-taskers who are trying to do it all and don’t have time for a three-hour catered boardroom meal. 

Look for “familiar snacks with a twist,” said Trendspotter Jeannie Houchins, a global food and beverage communications executive.

And for the youngest cohort--Gen Z—they are joining the health- and wellness-journey early. Female Gen Z are all about supporting their overall wellness, gut health, mental wellness and radiant skin. In fact, interest in hydrating, non-alcoholic beverages that address comfort concerns like bloating, skin issues and mental health increased by 250% over the last two years, according to Tastewise, an AI-powered consumer insights platform for food and beverage brands.

Gen Z understands the holistic health impact of good hydration hygiene. Leading trends within the realm of hydration include hormone balance (+162% year-over-year growth in consumer associations with hydration), menopause support (+162%), muscle function (+94.7%) and stress relief (+73%), according to Tastewise.

Here’s more from the SFA Trendspotter Panel to assist with formulating Foods for Females. 

“The specialty food market is uniquely powerful at pointing the way forward for the larger food industry, because the makers of specialty products respond first to changing consumer preferences and values,” said Leana Salamah, senior vice president of marketing and communications at the Specialty Food Association. “Looking to 2025, trends like the increasing appetite for real sugar over artificial or the upscaling of cooking at home with premium ingredients will absolutely be reflected in more mainstream outlets.”
 

Trendspotter Kat Craddock, editor in chief and CEO of SAVEUR expects that consumers everywhere will continue to gain access to non-native flavors and new-to-them dishes in convenient formats. And, Trendspotter Kantha Shelke, founder of Corvus Blue LLC and also a long-time friend, said, “Consumers are increasingly seeking gourmet-quality meals in convenient formats. Restaurant visits may decrease in favor of restaurant-quality meals at home thanks to some great home cooking equipment along with more access to top products such as Japanese Wagyu, truffles, and fine oils and cheeses.”

Functional foods and natural enhancements will continue to gain traction. Never forget, milk is one of the original functional foods. Remind shoppers.

“Personalized nutrition will gain momentum, driven by technological advancements and a growing focus on health,” said Trendspotter Patsy Ramirez-Arroyo, a food and sustainability consultant. “Companies will offer customizable product lines, develop AI-powered nutrition apps and create functional foods with targeted health benefits. Functional foods that support cognitive health and emotional well-being will also grow in popularity. Ingredients like adaptogens, nootropics and mood-enhancing botanicals will be featured in various products.”

This includes dairy innovations.

“Functional has expanded beyond beverages,” said Beth Forrest, Professor of Liberal Arts and Food Studies at the Culinary Institute of America.

Other trends identified by the SFA Trendspotter include Black Garlic, Lavender and Flavored Cheeses.

Thank you ladies for your insights!

 

 

Newstalgia Will Dominate in 2025

 

Photo source: McCormick

Newstalgia, as the name suggests, refers to nostalgic items with a new twist, often an improvement or enhancement to the original. In food and beverage, this is Gen Z taking an interest in products from the 70s and 80s, the years their parents grew up and when life was much less stressful and social media did not exist. The good old days for us Gen Xers!

Newstalgia is more than making everything old new again. It’s about taking products from a few decades ago that brought joy to consumers, and bringing them back with 21st century appeal. That joy, that appeal is about the experience. 

Colored sugars were once big around the winter holidays. But back in the day, they were just that, colored sugars. This year, McCormick is offering six varieties of Holiday Finishing Sugars. The newstalgia colored sugars come flavored. Some of those flavors are classic favorites, such as Candy Cane, English Toffee, Gingerbread Spice and Hot Cocoa. Salted Caramel and White Frosting are more 21st century. 

 

“When we think about the holidays, we remember special moments from year’s past: cookie and ornament exchanges, scents and smells of family-favorite dishes, and warm beverages on cold nights,” says Giovanna DiLegge, vice president marketing-North America consumer at McCormick. “The new Holiday Finishing Sugars bring a sense of the season with a flavorful, decorative touch to baked goods or beverages. Get the ‘ooh’s’ and ‘aah’s’ out of family gatherings with this new, limited-edition collection.”

Pinkberry is doing it with frozen yogurt. New Snickerdoodle Cookie is a non-tart frozen yogurt topped with sugar, cinnamon-dusted shortbread cookie crumbles and chocolate chips.

“Our new Snickerdoodle Cookie frozen yogurt is a comforting sweet treat that goes beyond the ordinary and will capture the hearts and taste buds of cookie enthusiasts,” says Melissa Hubbell, vice president of marketing for Kahala Brands, parent company of Pinkberry. “The Snickerdoodle Cookie frozen yogurt wouldn’t be complete without the finishing touch of warm, comforting flavors of cinnamon and sugar sprinkled on top bringing joy and nostalgia to every bite.”

Up until the early 90s, kids still brought peanut butter and jelly sandwiches to school and peanut packs were served on airplanes. The 21st century rolled in with peanut bans because of a rise in allergies. Well, PB&J is back in full force.

The PB&J sandwich was and still is an American staple in peanut safe households. The average American will eat 1,500 PB&J sandwiches before graduating from high school, according to a survey by the Smucker’s Company.

Handel’s Homemade Ice Cream is turning back the clock by delivering this childhood classic brought to life in ice cream form. New Peanut Butter and Jelly Ice Cream features peanut butter ice cream with strawberry ripple and shortcake pieces to reimagine this sandwich staple into a creamy, dreamy delight.

“Certain foods strike up strong childhood memories, and our new Peanut Butter and Jelly Ice Cream captures that nostalgia in every scoop," says Jennifer Schuler, CEO of Handel’s Homemade Ice Cream. “We love to innovate by reinventing timeless classics, a tradition we’ve upheld throughout our nearly 80-year history. Now more than ever, guests seek familiar, indulgent flavors with a modern twist. Our new flavor offers a universal appeal that sparks kids’ imagination while rekindling fond school day memories for parents and grandparents.”

Cold Stone Creamery went retro this summer with three limited-edition items: 

Classic Fudge Sundae--French Vanilla Ice Cream layered with Fudge, Roasted Almonds, Whipped Topping and topped with a Cherry.

Orange Cream Float--Sweet Cream Ice Cream topped with FANTA Orange Soda and Whipped Topping.

Root Beer Float--French Vanilla Ice Cream topped with Barq’s Root Beer and Whipped Topping.

Bimbo Bakeries USA, manufacturer of Little Bites--the iconic mini-muffin brand that turns 25 this year--is going big for its birthday celebration with the launch of Little Bites Biggie Muffins.
 

 “Our fans grew up with the classic Little Bites muffins in their childhood lunchboxes, after school and on sidelines. Biggie Muffins have allowed us to provide fans of all ages that perfect bite of nostalgia, now in a bigger size, just like them,” says Moira Flood, marketing director. “Biggie Muffins are the perfect snack for those with busy lives who crave a moment of sweet indulgence.”

 

1440 Foods is giving a nostalgic twist to its Pure Protein bar brand with the addition of Sundae Cone. Protein bars barely existed 25 years ago, and then they took off. Gen Z grew up with them and now wants them with new flavor twists. 

GoodPop is getting back into dairy with frozen stick novelties after discontinuing its original line due to an inability to find dairy suppliers that met both GoodPop’s high standards and increasing demand. Recent improvements in the supply of high-quality dairy has finally allowed the better-for-you brand to re-enter the category, according to the company. The company decided to make its big comeback with classic ice cream truck treats: Strawberry Shortcake and Cookies ‘n Cream.

 

Nostalgic cereals are getting a makeover, too. Ghost, a lifestyle brand of sports nutrition products, energy drinks, dietary supplements and apparel, is entering the mainstream food sector with high-protein cereals. The line was developed in partnership with the cereal gurus at General Mills Inc. The Marshmallow variety includes the iconic Lucky Charms marshmallows and provides 17 grams of protein per serving. Peanut Butter provides 18 grams of protein and only 6 grams of sugar per serving. Both cereals are also a good source of calcium and are designed to help consumers keep nutrition goals on track from morning to night. 

 

Classic holiday films evoke nostalgia. One such movie is Home Alone, which premiered in 1990. This year, Danone North America, in partnership with 20th Century Studios, is rolling out an array of International Delight products featuring Kevin McCallister scenes from Home Alone to give consumers a delicious and nostalgic taste of the holiday season. This includes new Hot Chocolate Marshmallow Creamer, along with returning favorites Frosted Sugar Cookie Creamer, Peppermint Mocha Creamer, Peppermint Mocha Zero Sugar Creamer and Peppermint Mocha Iced Coffee.  

Christina Tosi’s Milk Bar franchise was ahead of its time, as most of its offerings are based on newstalgia. This summer, for example, Milk Bar teamed up with Tropicana to make a limited-time-offering. The soft-serve, Orange Squeeze is a nostalgic cream-meets-citrus flavor. A cup sold for $7 and a pint for $13.
“I grew up racing to the ice cream truck to score my favorite creamy, orange and vanilla flavored bar,” says Tosi. “Orange Squeeze is our take on that childhood classic, transporting you back, Milk Bar style, to sweet summer memories of that bright, fresh-tasting combo.”

The pandemic required that Tosi pivot her café business into retail pints. She started with four of the café’s most popular ice creams flavors. Soon, three others followed as the brand gained national distribution. 

Like novelty cups, pints present a package size that readily accommodates lots of inclusions along with unique textures, as compared to larger multi-serve containers that may get too messy when overwhelmed with extras that impact the frozen state.   

The four original pints included Birthday Cake, a birthday cake-flavored ice cream with birthday cake crumbs and ribbons of birthday frosting. The Cereal Milk ice cream base tastes like the bottom of the cereal bowl with some extras in the form of a salty-sweet cornflake crunch. Cornflake Chocolate Chip Marshmallow is an ode to the Milk Bar’s bestselling cookie. It combines cornflake crunch, chocolate chunks and gooey marshmallow swirls throughout a cookie dough ice cream. Milk Bar Pie is vanilla ice cream with swirls of a gooey butter filling and toasted oat crumble.
The three additional flavors are Peanut Butter Chocolate Cookie Crush (peanut butter chocolate ice cream with peanut butter cookie crumbs and fudgy chocolate cookie batter); Chocolate Mint Cookies N’ Cream (chocolate mint ice cream, chocolate cookie batter, cookies n’ cream crunch and creamy mint swirl) and Vanilla Sugar Cookie (vanilla cookie swirled into an ultra-creamy pint of vanilla-flavored ice cream with sugar cookies and a frosting swirl).

“I have dreamed about bringing Milk Bar to the freezer section--the holy grail of the supermarket in my opinion--for nearly a decade. I knew coming in now, we’d need to do more than bend pieces of our finished treats into an ice cream pint. So we toiled and tinkered, taking our favorite flavor profiles and imagining them through ice cream bases, swirls, gobs, fudges, frostings, crumbs and crunches to create our proudest on-shelf creation yet,” said Tosi, when the line debuted in June 2021. “Our ice creams are meant for the unapologetically indulgent moments and mean serious business, no two are alike. Whether we already have a place in your heart or you’re looking for even more joy and spirit in your ice cream bowl, we got you!”

Remember to include newstalgia in your product--and package--development.

 

 

 

Read about Transparency, the Biggest Opportunity for Dairy—especially Fluid Milk--since Pasteurization.

 

The Center for Food Integrity and food system leaders met this week in the Chicagoland area at the 2023 Transparency Summit. The goal for participants was to share ideas and learn from others on how to create actionable strategies for operationalizing transparency across the food and agriculture value chain.

The event included a five-person panel of local primary grocery shoppers interviewed by Susan Schwallie, founder of Mangaso Consulting. The panel was screened for being somewhat of a “foodie” in the sense that they cared about the food they purchased. That’s all they knew before bravely walking onto the stage. Their insights were priceless. 

1. Ingredients. Their thoughts on ingredients was scary. The panelists repeatedly said they wanted to know what is in their food and they currently believe the industry is keeping secrets from them. They were never corrected on what they said. They did use the words “clean label,” “minimally processed” and “simple ingredients.” Many in the audience interpreted this as they want to know what the ingredients are and why they are in the food. One panelists said she will never purchase tortillas—fresh or chips—if they are made with anything more than maize, water and salt. 

2. QR Codes. They want QR codes on packages. A number of panelists said they will Google questionable ingredients when in the supermarket, but would prefer a QR code to learn more about the ingredients and their sourcing. 

3. Expiration/Sell By Dates. These are confusing. A number of panelists said they do not trust products with a long shelf life. This is where explaining the technology used—not the ingredients—to get a long shelf life is critical in marketing communication. It was interesting that one panelist did not trust a can of vegetables with a 12-month expiration date. She believed there was something more in that can than the beans, water and salt listed on the ingredient statement. 

4. Free from Pesticides. The panelists like knowing that the foods they purchase are free-from pesticides. Sherry Frey, vice president-total wellness for NielsenIQ spoke after the panel and shared consumer data supporting the appeal of free-from pesticide claims. The top-five categories with free-from pesticide claims are: Milk, Vegetables, Yogurt, Cereal/Granola and Eggs. 

5. Ultra-processed. Not one single panelist had heard the term or knew what it meant. So while the dialogue surrounding ultra-processing is confusing among the food industry and regulatory bodies, consumers don’t know it yet. What the panelists did appreciate is the understanding of minimal processing.  

6. Real People. The panelists want to hear about products from people. They want to hear the stories, and from real people. This is why influencers have become part of so many marketing efforts. Those QR codes may want to connect to a video of a farmer explaining his/her passion in farming and feeding the world.  

7. Trust in Retailers. The panelists expressed trust in retailers that they believe vet products. There’s trust in private label and local brands. 

Milk and dairy can do all this and more. 

A Dairy Processor’s Guide to Whole Foods Market’s Top-10 Food and Beverage Trends for 2025

 

(photo source: Milky Mist) Milky Mist believes in the power of dairy. One of the company’s most recent innovations is shelf-stable Milkshakes in Coffee and Butterscotch flavors. They are marketed as “the ultimate pick-me-up for your day! Guaranteed to keep you refreshed all day, indulge in pure delight with every sip.” The company states its healthy beverages are not only rich in taste, they provide calcium, potassium and protein, among other nutrients.

The Global Dairy Food Market size is estimated to grow by $88.1 billion from 2024 to 2028, according to Technavio. The market is estimated to grow at a compound annual growth rate of more than 2% during the forecast period. 

Consumer interest in healthful, minimally processed, natural, whole foods is driving this growth. The report states that the dairy foods industry is thriving with trends like milk, yogurt, cheese, spreads and ice creams leading the way. Nutritional value is a key focus. 

Lactose-intolerant consumers are finally feeling the love from dairy processors thanks to the plethora of lactose-free offerings that rolled out this past year. Thank you! 

If you have not heard of Milky Mist, check them out HERE.

“Milky Mist is dedicated to spreading the daily dose of nutrition, all day, every day. From being the initial ingredient to delivering the finishing touch, we make sure our products add the nutritional value you deserve. With our range of 300+ products, we’re committed to making India, a healthy India.”

“Daily dose of nutrition,” hmm, wonder if they read my blog. 

Innovative fermented dairy products, with probiotics and prebiotics, along with added vitamins, minerals, bioactive peptides, specific proteins, conjugated linoleic acid, antioxidants, organic acids and more are being embraced by all consumers, according to the Technavio report. Consumers finally get probiotics and they are turning to dairy for their daily dose. 

Whole Foods Market recognizes the nutritional value of dairy done correctly. Look at the opportunities for dairy in the natural and organic foods retailer’s 10th annual trends report.

The Whole Foods Market Trends Council--a collective of more than 50 Whole Foods Market team members ranging from foragers and buyers to culinary experts--develop these trend predictions each year through a combination of deep industry experience, keen observation of consumer preferences, and collaborative sessions with emerging and established brands.

Here they are. Explore how dairy fits in. 

1. International Snacking
The snack aisle is a perfect place for disruption with brands taking on salty snacks and adding global flavors to create fusion foods that have mass appeal and entice consumers to try something new. This is so much more than yogurt-covered raisins. Think freeze-dried kulfi in flavors such as mango or pistachio. Baked cheese snacks need to push flavor boundaries. I welcome a hot honey 100% cheddar crisp. 

2. Ever-Adaptable Dumpling
Dumplings are dough pockets with a typically savory filling, usually cooked by boiling, steaming or pan frying. Also known as pocket foods, they’re showing up in multiple aisles including frozen and shelf-stable, single-serve formats. These products hit on a few trends. Many are authentic to a founder’s cultural roots and ripe for fusion and unexpected mash-ups, which have continued popularity both on TikTok and restaurant menus. Dumplings are long-standing staples in cuisines across the globe, making them a trend everyone can feel involved in and get excited about.

You know what goes great with pierogis, the Polish dumpling? It’s sour cream. (Being 100% Polish, I know.) There’s a lot of room for innovation in dumpling dipping sauces based on dairy. I hate to be repetitive, but why is no one doing a hot honey dairy dip? This sounds like an amazing accompaniment to Asian dumplings, heck, even potato cheese pierogies. (I make the best.)

3. Crunch: Texture of the Moment
It’s time for those dual compartments and dome cups of yogurt, pudding and dairy desserts to provide something more than cookie crumbles. Enough said.

This week, my friends at Maple Hill Creamery, America’s original 100% grass-fed organic dairy company, announced its partnership with Purely Elizabeth. With Maple Hill’s Grass-Fed Organic Greek Yogurt, consumers are enjoying yogurt as nature intended, packed with a 50% higher ratio of omega-3 to omega-6 fatty acids and 40% higher levels of conjugated linoleic acids, which contribute to potential health benefits, including a lower risk of heart disease. The yogurt is a great canvas for Purely Elizabeth’s Pumpkin Cinnamon Ancient Grain Granola, a gluten-free, non-GMO blend crafted with organic oats, coconut sugar and pumpkin seeds. 

4. Hydration Hype
The Whole Foods Market Trends Council reports that consumers want more from their water these days. They are seeking added electrolytes and hydration in more innovative forms. Think clear whey protein waters. There are not enough of these out there and they are limited to the health food aisle. Start selling hydration in the fluid milk case.  

5. Tea’s Time
There’s tea talk everywhere you turn, both as a beverage and in flavor popularity. The Whole Foods Market Trends Council identified a number of dairy players in this space. They are Heritage Kulfi Cardamom Chai Ice Cream, Kola Goodies Sri Lankan Milk Tea Latte, Van Leeuwen Blue Jasmine Tea Ice Cream Bars and Bubbies Milk Tea Mochi. This is a HUGE opportunity. Enough said. 

Oh, and in case you forgot, dairies can process ready-to-drink tea, too. 

6. Next-Level Compostable
Products that aren’t ditching packaging completely are going the compostable route, making some or all elements of their packaging compostable. Don’t be shy. Share your packaging story. 

7. More-Sustainable Sips
Well, OK, this trend focuses on forward-thinking boozy brands that are working to reduce their environmental footprints. Natural and organic wines may not be new, but brands are taking things a step further by embracing regenerative practices and lower-impact packaging. And guess what, so are dairies.

This week, Challenge Dairy announced its commitment to sustainability by integrating electric vehicles (EV) into its delivery fleet. As part of its dedication to reducing its carbon footprint and complying with California’s evolving emissions regulations, the company plans to deploy three EV trucks by the end of 2024, with the goal of achieving a 100% electric fleet by 2035. 

Transitioning to EV trucks will significantly reduce diesel consumption, with each truck expected to save approximately 3,000 gallons of diesel annually. This transition translates to a reduction of around 30 metric tons of carbon dioxide emissions per truck each year, directly supporting Challenge Dairy’s sustainability goals and contributing to improved air quality in the San Joaquin Valley.

8. Sourdough Stepped Up
During the pandemic, we saw a sourdough resurgence with at-home bakers trying their hand at the classic fermented bread. This trend is moving into grocery aisles in both traditional and innovative ways with customers looking for the benefits and flavor that sourdough offers without spending hours in the kitchen. 

There has to be a dairy opportunity here. Someone out there, please figure it out. Sourdough-flavored buttermilk? 

9. Plant-Based Aquatic Ingredients
With the continued popularity of seaweed and the increasing interest in harvesting readily available aquatic plants for more-sustainable sources of protein and nutrients, the tide is turning toward foods made with more sea and freshwater greens. Sea moss, in particular, has been making a splash as a buzzy wellness ingredient—especially touted for its iron, magnesium and iodine content—in formats such as beverages and gummies. Duckweed, or water lentils, is in the early stages of emerging on the scene and boasts a higher protein content than other leafy greens, and agar-agar (a plant-based gelatin alternative that comes from red algae) is primarily fiber based and promoted for digestive support. 

It is challenging for me to brainstorm on how delicious dairy can go with seaweed. (I am not a fan.) But, something makes me think that dried seaweed makes for an interesting inclusion. Think “Trend #1 International Snacking”  and “Trend #3 Crunch: Texture of the Moment.” Maybe it could be a mix-in for a sourdough-flavored dual compartment yogurt?  

10. Protein Power-Up
Consumers are looking to incorporate more protein in their diet beyond traditional powders and bars, with an emphasis on ramping up protein consumption at meal times and with “whole food” snacking. Recipes incorporating cottage cheese (still the “it girl” in dairy) may have kick-started customers’ desires to seek out protein in whole food sources, with consumers now prioritizing animal protein. Enough said! 

Dairy Wins Big in Vegas this Week

 

(photo left) Young shoppers are looking for experiences and are willing to spend on premium products. These mini donut milkshakes were served as a snack at GroceryShop. Real milk. Real ice cream. 

 

“The next five years are going to be phenomenal,” said Sherry Frey, vice president-product insights at NielsenIQ, when speaking at GroceryShop on Monday, October 7.

For starters, she showed that sales are up in the perimeter of the store. You know what’s in the perimeter? It’s dairy. (See chart below.)

She also showed that “Better For” is once again outpacing conventional. You know what’s Better For? It’s dairy. (See chart below.)

She showed how there will be critical shifts in generational spending over the next five years. (See chart below.)

She explained that while the conversation often refers to generations, it’s really about the life stage that the generation is in and how they are handling it. 

Boomers have been trying to defy aging for the past 20 years. They are starting to realize that maybe it’s not a good thing to have their bodies outlast their brains. Younger generations will likely address aging in a different way, and that starts now.

“Today’s consumer is more intentional than ever,” said Frey. “Keep your eyes on the Millenials and where they are in their life stages.”

Key takeaways from her presentation include:

• Spending is being directed to where it matters most in the great shift from cautious to intentional spending.
• The most valued products deliver in multiple ways to multiple consumers.
• Changing priorities will drive the innovation requirements in the future.

Ram Krishnan, CEO of North American Beverages for PepsiCo also spoke at GroceryShop. He discussed the challenges of building brand loyalty in an era of fickle shoppers. He described today’s shoppers as having “precision loyalty.” They are loyal to what works for them. 

 

(photo left) Shamrock Farms said its single-serve milks and protein-enhanced milks are rockin’ in retail and the c-store channel.

David Portalatin, senior vice president-food and foodservice industry adviser,  Circana, spoke at a MilkPEP webinar on Thursday, October 10. He shared highlights from the hot-off-the-presses “Eating Patterns in America” report. He explained that in-home beverage consumption continues to grow as away-from-home remains stable. Overall, annual beverage-drinkings-per-capita is 1,504, as compared to 1,482 in the 2023 report. This is not volume. This is the occasion of putting a beverage to the mouth and drinking. 

“Consumers are looking to beverages to satisfy various needs,” said Portalatin.

They are: Hydration, Energy, Source of Protein and Source of Treat or Reward.

 

(photo right) Spylt—the original caffeinated, protein-enhanced flavored milk—had a very strong and active presence at NACS. The product appeals to the growing e-sport sector. To read more about e-sports, link HERE.

 

Fluid milk is the ideal base ingredient to speak to what today’s consumers want from their beverages. Convenience channels and grab-and-go retail merchandising is a great place for milk-based beverages. 

Convenience stores saw record sales in 2023, according to the National Association of Convenience Stores (NACS), which hosted the 2024 NACS Show at the Las Vegas Convention Center from Oct. 7-10. Total convenience industry sales in 2023 were $859.8 billion, of which $327.6 were from in-store sales. The average basket—what customers spent per visit—increased 3.7% to $7.80.

(photo above) Chobani, and its recently acquired LaColombe business, make milk fun. Both brands have new dairy beverages rolling out soon.

This year’s theme—We Are Convenience—reminded c-store operators that they are selling a concept, and that is convenience. Historically, convenience meant stopping for a gallon of milk or a loaf of bread on the way home from work. Today, convenience equates to foodservice, beverages and snacks. Dairy plays in all three.

(photo right) Sargento is all about snacking cheese. The c-store channel represents a growth opportunity. 

To read more about “Redefining the c-store experience,” link HERE to an article I wrote on this topic for Food Business News.

Stopping at the c-store for a gallon of milk and a loaf of bread on the way home from work was something those who stayed at the Tropicana did, which I watched implode in the wee early hours of October 9. Get inspired by watching a 7-minute VIDEO of the Tropicana hotel imploding, taken by yours truly. There’s no going back. The time is now for the Future of Dairy. It's time to Rethink Dairy.

Dairy is Not a Trend. It’s the Future of Nutrition and Innovation.

 

Trends come and go, while taste always reigns. Nutrition is increasingly being prioritized by today’s consumers and is fueling the future of food innovation. 

Health-conscious consumers are driving a staggering $638 billion in food and beverage spending, with $363 billion allocated to retail and $275 billion to foodservice, according to Circana’s Complete Food & Beverage research released this week. This data highlights a growing trend in the wellness movement, with one-third of all food and beverage spending now driven by consumers prioritizing physical, mental and social well-being. 

“Consumers are looking for wellness across every aspect of their lives, and food and beverages are playing a critical role in this transformation,” said Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. “Our Complete Food & Beverage research shows that while the retail sector is excelling at meeting these needs, there is significant opportunity for foodservice providers to innovate and offer wellness-centered dining experiences.”

Consumers are increasingly seeking fresh, nutrient-dense foods that promote physical health, according to the research. Retailers are responding by offering a variety of minimally processed products high in protein, fiber and natural ingredients. Think milk and all things dairy!

In contrast, wellness influences only 11% of foodservice meals, as dining out remains more focused on convenience and indulgence. This presents an amazing opportunity for dairy in the out-of-home channel.

Thirty-five percent of consumers view food as an important tool for managing stress and improving mood, driving increased interest in functional foods and beverages that support mental health, according to Circana. While retailers are capitalizing on this trend with expanded assortments of relaxation beverages and mood-enhancing snacks, both retail and foodservice are providing treat-based indulgences, such as bakery items, candy, and yes, ice cream, which are often go-to items for emotional well-being. 

(click on graph to enlarge)

The rising trend of “eatertainment” is changing the way consumers experience dining, blending food with social interaction. This is particularly strong in foodservice, where chains are adapting to meet consumer demand for experiential dining. Retailers are also supporting social wellness by hosting community-driven events, helping consumers integrate physical health with social engagement.

It’s no wonder Milk Bar is expanding into my hometown. Read about this below.

As consumer demand for wellness grows, dairy foods formulators have the opportunity to innovate by expanding their offerings to better align with physical, mental and social well-being. Listen to the on-demand Circana webinar on this topic by linking HERE.

Packed with 13 essential nutrients that we all need to thrive and live healthy lives, along with being absolutely delicious, milk and products made with milk and milk ingredients, are part of the solution to addressing hunger and food insecurity. Listen to how dairy industry leaders are tapping into milk’s nutritional potential to address nutritional challenges. Link HERE to this week’s episode of The Dairy Download. 

Milk Bar Is Coming to Chicago

Milk Bar, the rule-breaking dessert company with New York City origins, is finally expanding to Chicago, my hometown and the location of many dairy- and food-centric associations, businesses and conferences. The Chicago location will be in the Fulton Market District at The Hoxton hotel. The shop will feature its full dessert menu along with Chicago-specific treats. Milk Bar was founded in 2008 and has more than a dozen locations in cities outside of New York, including Los Angeles, Boston and Washington D.C. 

“I am a Midwesterner by birth and Chicago has long been one of my favorite cities to visit. Food, culture, sports and art, the city is teeming with real people doing real things their way: creatively, honestly and inspiringly,” said Christina Tosi, Milk Bar founder and award-winning chef. “We promise to show up with passion, enthusiasm and care, serving delicious cookies, cake, pie and ice cream early in the morning until late at night. Chicago, we can’t wait to show up for you. We can’t wait to call you home.”

Tosi spoke a number of years ago at the International Foods Association’s Ice Cream Tech Conference. She believes in the power of dairy. Even her baked goods rely on real butter. 

This summer, Milk Bar teamed up with Tropicana to make a limited-time-offering. The soft-serve, Orange Squeeze is a nostalgic cream-meets-citrus flavor. A cup sold for $7 and a pint for $13.

“I grew up racing to the ice cream truck to score my favorite creamy, orange and vanilla flavored bar,” said Tosi. “Orange Squeeze is our take on that childhood classic, transporting you back, Milk Bar style, to sweet summer memories of that bright, fresh-tasting combo.”

The pandemic required that Tosi pivot her café business into retail pints. She started with four of the café’s most popular ice creams flavors. Soon, three others followed as the brand gained national distribution. 

Like novelty cups, pints present a package size that readily accommodates lots of inclusions along with unique textures, as compared to larger multi-serve containers that may get too messy when overwhelmed with extras that impact the frozen state.   

The four original pints included Birthday Cake, a birthday cake-flavored ice cream with birthday cake crumbs and ribbons of birthday frosting. The Cereal Milk ice cream base tastes like the bottom of the cereal bowl with some extras in the form of a salty-sweet cornflake crunch. Cornflake Chocolate Chip Marshmallow is an ode to the Milk Bar’s bestselling cookie. It combines cornflake crunch, chocolate chunks and gooey marshmallow swirls throughout a cookie dough ice cream. Milk Bar Pie is vanilla ice cream with swirls of a gooey butter filling and toasted oat crumble.

The three additional flavors are Peanut Butter Chocolate Cookie Crush (peanut butter chocolate ice cream with peanut butter cookie crumbs and fudgy chocolate cookie batter); Chocolate Mint Cookies N’ Cream (chocolate mint ice cream, chocolate cookie batter, cookies n’ cream crunch and creamy mint swirl) and Vanilla Sugar Cookie (vanilla cookie swirled into an ultra-creamy pint of vanilla-flavored ice cream with sugar cookies and a frosting swirl).

“I have dreamed about bringing Milk Bar to the freezer section--the holy grail of the supermarket in my opinion--for nearly a decade. I knew coming in now, we’d need to do more than bend pieces of our finished treats into an ice cream pint. So we toiled and tinkered, taking our favorite flavor profiles and imagining them through ice cream bases, swirls, gobs, fudges, frostings, crumbs and crunches to create our proudest on-shelf creation yet,” said Tosi, when the line debuted in June 2021. “Our ice creams are meant for the unapologetically indulgent moments and mean serious business, no two are alike. Whether we already have a place in your heart or you’re looking for even more joy and spirit in your ice cream bowl, we got you!”

Idaho Milk Products is Becoming an Ice Cream Co-Packer

To help more ice cream creators turn their innovations into reality, Idaho Milk Products, today’s blog sponsor (thank you!), is constructing a $200 million dual ice cream and powder blending facility at its Jerome, Idaho, campus. The company’s entry into the ice cream business comes with a focus on premium indulgent and functional recipes in both bulk and novelty formats, while blending capabilities will support the ice cream business and create capabilities to provide custom formulations to both existing and new customers.

“Construction of the custom-designed 183,000-square-foot plant will commence within the next two months and be substantially complete by early 2026 with full commercial production by May 2026,” said John Murphy, vice president of operations at Idaho Milk Products. 

Commenting further on the company’s commercial strategy, Kevin Quinn, vice president of sales and marketing, said, “We have the freshest, best-quality cream in the market, and the project was initially born out of the conviction to add incremental value to a portion of that product stream. The inclusion of a blending facility in the new plant creates new ways to service our customers and add to the benefits of our vertically integrated model.”

The team at Idaho Milk Products believes that this project builds on the company’s purpose, is a natural extension of its existing model and has the potential to create one of the world’s most sustainable ice cream businesses. A groundbreaking event will take place October 11, 2024.

“We will be able to produce a variety of novelty products, including sandwiches and stick bars and have the capability of producing various carton sizes from less than pint to half a gallon,” said Louis Armstrong, ice cream business manager. “We intend to co-manufacture various ice cream products in partnership with brands’ or retailers’ needs. Our plant, at scale, will have the capacity to produce roughly 14 million gallons of ice cream mix per year into various frozen formats.”

Daragh Maccabee, CEO of Idaho Milk Products, said, “Our commitment to our core business remains. We work hard every day to maintain our position as a global leader in milk protein concentrates (MPC) and milk protein isolates (MPI). At the same time, we constantly seek out new ways to add value to our milk, always doing so in a way that is sustainable for the longer term. Our vision for this plant is to build on the strength of our existing business, leverage our Milk Innovation Center, the strength of our R&D team and the unique synergies that this business will create.”

The Many Reasons to Use a Co-Packer

The dairy foods industry is overflowing with entrepreneurs, which is a beautiful thing. Innovative product development and healthy competition keeps the dairy case exciting and consumers interested in all things dairy. 

Early in the process of innovation, startups must decide whether they want to invest in processing, packaging and warehousing (to have control over the operation as well as secure any proprietary technology) or to partner with a contract manufacturer, aka a co-packer. 

More times than not, entrepreneurs and smaller manufacturers choose to partner with an expert to manufacture their products. There are many reasons why this is the smarter option. 

The most obvious reason is that this option reduces capital investment and assists with cash flow, freeing up dollars for marketing efforts to build brand awareness. Co-packers are also experts at what they do. This frees up man power and brain time, reducing energy spent on learning the process and troubleshooting common production issues. 

Before you begin interviewing potential co-packer partners, it is paramount that you identify those criteria that are non-negotiable and those where there’s flexibility. Keep in mind, co-packers vary in capabilities. Decide if you want to source ingredients and packaging, or if you prefer the co-packer do this for possible bulk pricing benefits. 

Speaking of pricing, determine your cost structure. Discuss potential hidden expenses.

Set quality standards. Identify product and package specifications, including shelf life requirements, as well as certifications such as allergen-free lines, kosher, organic, etc.

Safety, quality and record keeping are not negotiable in this day and age. Do your homework. Evaluate the co-packer’s safety and sanitation procedures. Do they have a HACCP plan? Are they compliant with the Food Safety Modernization Act? Is the manufacturing facility regularly audited by an accredited firm? Is the co-packer prepared to properly handle a recall?

Ask for referrals. Find out how reliable the co-packer is for scheduling production. How far in advance do you need to confirm schedules?  

Then there’s that gut feel we all have when doing business. Do you feel that the co-packer will work with you when issues arise? Troubleshoot with you? Communicate in a timely manner? In general, the more transparent a co-packer is willing to be, the more trustworthy the partnership will be. This is even more important when proximity is an issue. 

Remember, if you are prepared and do your homework, it will be easier to identify the best co-packer for your innovation. Your chance of success increases. 

Dairy is not a trend. It’s the future of nutrition and innovation.