The Dairy Processor List. Edition 2.

The Dairy Processor List will be a recurring Friday blog topic as we try to navigate the chaos taking place in Washington, DC. It will highlight the good, the bad and the ugly. Welcome to the second edition, which covers: Shopping habits, SNAP, sugar is poison, reformulation plans need to be accelerated, but most important, highlights from the 101st Collegiate Dairy Products Evaluation Contest.

If you missed the first edition on food safety, colors, sugars, clean labels in schools and reformulations for retail, link HERE.

1. Shopping Habits. Thirteen percent of household budgets went toward food in 2023, according to U.S. Grocery Shopper Trends 2025 by FMI--The Food Industry Association. This was the same amount a decade ago. 

“Despite the economic pressures they face, consumers overwhelmingly tell us they enjoy grocery shopping and that they are willing and able to budget in order to ‘eat well’ based on their specific values and needs,” said Leslie Sarasin, president and CEO of FMI. “In fact, our U.S. Grocery Shopper Sentiment Index is currently holding steady at 72 out of 100. While individual needs vary, by and large, most shoppers prioritize four things when shopping for food: health, entertainment, exploration and convenience. Satisfying these key needs are important to shoppers, and they tailor their overall budgets and food spending behaviors to ensure they ‘eat well’.”

 

 

Still, several factors are weighing on consumers. Most Americans (70%) say they are extremely or very worried about rising grocery prices, and 78% said they are at least somewhat concerned about the impact of tariffs on the cost of imported food and ingredients. 

The analysis revealed a silver lining: most consumers (75%) report feeling in control over their grocery spending. However, that confidence has declined in recent months; 85% of consumers expressed confidence in control over food spending in September 2024. In response, shoppers report using various strategies to stretch their food budget further. Traditional methods like list-making (83%), taking household inventory (79%), meal planning (69%) and seeking out coupons or discounts (60%) remain the most common. 

2. SNAP. What’s at stake for the Supplemental Nutrition Assistance Program? The House proposal calls for $230 billion in USDA cuts through 2034, while the Senate has proposed just $1 billion. The more cuts, the more likely SNAP is in jeopardy.
FMI’s Sarasin emphasized, “Our latest grocery shopper research underscores a critical opportunity for the industry to meet their customers where they are—navigating rising costs and economic uncertainty—while reinforcing the importance of SNAP, a vital anti-hunger program that provides just $6 a day to those most in need.”

“The American public is clear on this: 70% support SNAP, and a majority oppose any effort to reduce its funding, according to an FMI national survey by leading pollster, Fabrizio, Lee & Associates. The future strength of this program isn’t just a policy issue. It’s a moral imperative and an economic necessity.”

3. Sugar is Poison. Regardless how much SNAP gets funded, it will likely face purchasing restrictions, for example banning soda purchases. 

“Because of what we learned at the (April 22) press conference’s Q&A, we can now add sugar to (RFK’s hit) list,” according to Nicholas Fereday, executive director, Rabobank. “Let this sink in. For the first time ever, we now have a health secretary who believes that ‘sugar is poison’ and thinks we should not be consuming any added sugars. What were once considered fringe ideas have now been drawn into the very heart of government policy making.”

Per capita consumption of caloric sweeteners is down by about one-fifth since its peak at the start of the 21st century, according to USDA. Most of this is attributed to a decrease in consumption of sugary sodas.

“Kennedy is hoping to achieve further reductions in sugar consumption by raising awareness, or as he likes to say, ‘radical transparency,’” according to Fereday. “This includes initiatives like the upcoming update to the Dietary Guidelines for Americans, expected later this year, as well as a proposed four-year ‘Take back your health’ nationwide educational campaign. As he put it, this will give a ‘clear guideline on how much sugar they should be using.’ More broadly, ‘For those ingredients we cannot ban legally, we are going to start informing Americans about what they are eating. We are going to work with Congress and the White House to make sure we have adequate labeling, so Americans know what is good for them.’”

Results from the recent “IFIC Spotlight Survey: Americans’ Perceptions of Sweetness in Their Diets” from the International Food Information Council (IFIC) reveals a mounting tension between consumers’ enjoyment and health goals when it comes to sweetness in the diet. Nearly six in 10 Americans (58%) prefer sweet as their favorite taste, more than savory/umami (49%), salty (45%), sour (24%) or bitter (21%).

Despite a fondness for sweet flavors, eight in 10 Americans (78%) believe it is important to reduce the overall sweetness of their diet, primarily to eat healthier, manage blood sugar or diabetes, manage body weight and support dental health. Note, this is a survey of preference for sweetness, not necessarily on the source of that sweetness. 

“From a biological perspective, our love of sweet taste makes sense. It’s thought to be an ancient survival mechanism that signaled safe, energy-rich food, like glucose from plants” said IFIC Senior Director of Research & Consumer Insights, Kris Sollid. “As we’ve evolved, navigating our innate preferences and health goals has become more complicated.”

When asked what comes to mind first when they think about sweet-tasting foods or drinks, most Americans mentioned a specific food (39%) or beverage (23%), while far fewer thought of an ingredient or feeling. But their attitudes toward that sweetness are nuanced. While 59% agree that sweet-tasting foods and drinks can be part of a healthy diet, many still support scaling back the overall sweetness of their diets (78%). 

The survey asked respondents what they would expect if they reduced the sweetness of their current diet. The top expectations were improvements in overall health (64%) and the healthfulness of their diet (64%), followed by lower calorie intake (58%) and reduced body weight (55%).

Fereday said, “Even if Kennedy really believes that zero added sugar is achievable, it is improbable that consumers will want to eliminate all (added) sugars from their diets. However, we can probably expect a tapering off in consumption at some point.”

The fact is, sweetness, whether from added sugars or low- and no-calorie sweeteners, plays a powerful role in how we experience and enjoy food. But as the IFIC survey shows, Americans are increasingly looking for balance. 

4. Reformulation Plans Need to be Accelerated. In my opinion, dairy has already been actively cleaning up formulations. Great job. Keep going. 

“Kennedy has made it clear that he is under a two-year timeline to get stuff done. For companies that choose not to push back, that means thinking hard about accelerating their existing programs to clean up their ingredient labels, taking out the artificial and reducing the number of non-nutritive ingredients,” said Fereday. “We have already heard from a few companies, and more will follow. For example, Hain Celestial is already in the coveted position of being able to boast that its U.S. portfolio is already free of artificial colors. PepsiCo reports that 60% of its U.S. food portfolio is already free of synthetic dyes, with their CEO recently acknowledging that they are going to have to accelerate their transition to natural ingredients. WK Kellogg Co has also committed to not launching any new products with artificial dyes from the start of 2026.”

5. The 101st Collegiate Dairy Products Evaluation Contest. California Polytechnic State University students garnered top honors at the 101st Collegiate Dairy Products Evaluation Contest, which was hosted by the Wisconsin Cheese Makers Association during their CheeseCon Show in Madison, Wis. The All Products team title, led by coach Vincent Yung, was also awarded the Shirley Seas Memorial Scholarship and $2,500 from QCS Purchasing Cooperative to support training students. 

Eight schools participated in this year’s contest. The other seven were the Pennsylvania State University, the University of Missouri, the University of Minnesota, the University of Tennessee, the University of Wisconsin-Madison, the University of Wisconsin-River Falls and South Dakota State University. The South Dakota State University team placed second in the Team All Products category and the University of Tennessee team took third place, with several schools bringing home trophies in individual and team product categories.

Novonesis, today’s blog sponsor, hosted a student mixer the evening before the contest. Gary Pieper, technical sales manager at Novonesis, shared thoughts on the contest. 

“The Collegiate Dairy Products Evaluation Contest is a perfect way for individuals, such as myself and the companies we work for, to give back,” he said. “It’s an opportunity to invest in the futures of young women and men and our dairy industry. Many do not realize how many of the judges have collaborated over the decades in the industry. The contest becomes just as much of an opportunity to grow as dairy professional as it is being a volunteer.

“This year was one of my most rewarding years.  I was approached by a young man and his family. This young man was attending one of the participating universities. His family is involved in one of Wisconsin’s family-owned cheese factories. This gentlemen wanted to know how he could get involved as a contestant and his family was just as excited about the opportunity as he was. If that does not warm your heart and confirm you are making difference.”

To learn more about the competition or to get involved, link HERE. 
To read more about the contest and the winners, scroll down below the banner. Thanks Novonesis!

Established in 1916 by several universities, the Collegiate Dairy Product Evaluation Contest initially was designed to identify quality defects in dairy products throughout the country so they could be corrected. It expanded over the years to recognize those students and dairy product judging teams that had mastered the ability to identify high-quality dairy products. The contest gives students the opportunity to showcase their evaluation skills and prepare for careers in the dairy industry.

Product Category Winners
First-, second- and third-place winners were named in each of the six product categories. The undergraduate, graduate and team winners are:  

What’s Next for Protein? It’s Emphasizing Quality. (And guess what, dairy takes the lead!)

 

Dairy dominated many industry events this week, which began with the 2025 ADPI/ABI Annual Conference, and ended with a Chicagoland Food & Beverage Network (CFBN) Innovation Breakfast on Thursday. The latter is where Janet Helm, a food and nutrition consultant, kicked off a panel discussion with marketers of Chicago-based companies that were once start-ups and are now national brands.
If the name Helm rings a bell, it’s because she is the former Chief Food and Nutrition Strategist for Weber Shandwick, who helped turn milk from a commodity to a brand with the iconic got milk? and milk mustache campaigns. At the CFBN breakfast, she identified six movements taking place in food and beverage that are gaining momentum. 

For starters, she said that the growth in tools to identify ultra-processed (UP) foods will add more to the confusion. But, she heeded, UP is not going away from the conversation anytime soon. That’s because the second crusade is the MAHA Mom Coalition. This was my first time hearing about this group. The group’s ideology is not based on science. They have an anti-authority sentiment, and are firm believers in “if you can’t pronounce, don’t eat.”   

Helm chuckled when she shared that the group was challenged with pronouncing “riboflavin,” otherwise known as vitamin B2. At best, Helm said, the Coalition will mainstream clean-label initiatives. 

The next three movements—much more settling, in my opinion—are how the Ozempic phenomenon is inspiring true food and beverage innovation; how consumers are seeking out proactive nutrition through foods with benefits, e.g., longevity, gut health, metabolic health and mental wellbeing; and how protein is evolving from quantity to quality.  

The latter was a hot topic at the 2025 ADPI/ABI Annual Conference. (More on this shortly.)
The sixth and final movement disrupting the food and beverage industry, according to Helm, is the rise of healthy indulgence. She explained that after losing a few years of living life during the pandemic, consumers don’t want to compromise. They are looking for healthful desserts and functional indulgent products.

Dairy checks the box for all six movements. These are innovation opportunities you do not want to miss.

 

Source: Dairy Management Inc.

Before we get back to protein, let’s talk about the Dairy Matrix. That was part of a presentation given by Moises Torres-Gonzales, vice president of nutrition research at Dairy Management Inc. (DMI) at the ADPI/ABI Annual Conference. 

He explained how food provides calories that the body requires to simply run. Food also contains macronutrients (carbohydrates, fats and proteins), micronutrients (vitamins and minerals) and bioactives responsible for critical steps in physiological functions. Scientists are starting to better understand that these nutrients, when present in whole, minimally processed foods, interact with each other, impacting digestion and absorption. In the dairy industry, this is now called the Dairy Matrix effect. (See infographic above.)

“With the Dairy Matrix, the whole is greater than the sum of its parts,” said Torres-Gonzales.
In other words, eating natural whole foods is the optimal way to get important nutrients through the diet. The MAHA Moms would agree. (Trust me, it’s hard to write that, but it’s true.)

Matt Pikosky, vice president of nutrition research at DMI also spoke at the ADPI/ABI Annual Conference. He provided a very thorough explanation of how all proteins are not created equal. (See infographics below.)

Source: Dairy Management Inc.

For background, currently the Protein Digestibility Corrected Amino Acid Score (PDCAAS) is used to assess the quality of all protein. The score is an adjustment for the quality of the protein. It is based on the types and amounts of amino acids in the food as well as the overall digestibility. The PDCAAS values range from 0.0 to 1.0, where values are truncated to a maximum score of 1.00, which cow’s milk, casein, whey, eggs and soy protein all possess. Most plant protein sources have much lower values.

Pikosky believes what many in the industry have long hoped for, that the PDCAAS will be sent to the graveyard and that the Digestible Indispensable Amino Acid Score (DIAAS) will be adapted. The DIASS analysis enables the differentiation of protein sources by their ability to supply amino acids for use by the human body. It also demonstrates the higher bioavailability of dairy proteins when compared to plant-based protein sources.

Consumer research shows most consumers aren’t aware of, or aren’t able to distinguish, that proteins have differences in protein quality. The industry uses the Nutrition Facts panel to communicate the grams per serving of protein. At this time, the only way to show a difference in protein quality is by using the % Daily Value. That’s because % Daily Value for protein is determined using PDCAAS. 

Source: Dairy Management Inc.

Pikosky used the brand Orgain as an example. The brand’s protein shakes are either made with plant proteins or grass-fed dairy proteins. An 11-ounce container of either flags 16 grams of protein on the front panel. At a glance, the consumer may think these beverages are created equal. A turn of the package tells the real story. 

The plant protein variety only provides 18% of the Daily Value for protein. This is determined after correcting the protein content to a PDCAAS of 0.56. The grass-fed option, on the other hand, provides 32% of the Daily Value. No correction needed.

It is possible to reach the Daily Value for protein by eating enough plant proteins and complementing their amino acid profiles; however, with more protein, comes more calories. And calories still count. 

That’s the protein message that needs to be communicated to consumers. It’s all about nutrient density, getting more nutrition for every calorie.  

The amount of protein—dairy and plant—that is getting put into foods and beverages these days is getting to be a bit much. That’s why Helm believes quantity of protein will start to evolve to quality of protein. 

And, well, dairy’s got this. got milk? Make it with Dairy! 

The Dairy Processor List. Edition 1: Food safety, colors, sugars, clean labels in schools and reformulations for retail.

 

The Dairy Processor List will be a recurring Friday blog topic as we try to navigate the chaos taking place in Washington, DC. It will highlight the good, the bad and the ugly. Welcome to the first edition.

 
1. Food Safety. The industry needs to ensure consumers that the products it manufactures are safe, and will continue to be safe. Headlines like the following—"FDA Suspends Milk Quality Testing Program for Job Cuts” and “Is Your Milk Still Safe? FDA Puts Dairy Testing on Hold.”--are provoking unease and it’s paramount that processors communicate their food safety programs. 

On Thursday, April 24, 2025, Roberta Wagner, senior vice president of regulatory and scientific affairs at the International Dairy Foods Association (IDFA), issued the following statement clarifying a pause in the U.S. Food and Drug Administration’s (FDA) lab proficiency testing program.

“The suspension of FDA’s Grade ‘A’ proficiency testing program does not reduce the types or frequency of milk quality tests for Grade ‘A’ milk or finished dairy products as it makes its way from farms to stores across the country. All Grade ‘A’ milk continues to be subject to stringent testing and oversight throughout the supply chain—on the farm, before transportation and multiple times at processing facilities—by both state and federal regulators, as outlined in the Pasteurized Milk Ordinance. Milk and dairy product safety remains a top priority in the United States, and consumers can continue to trust that the dairy products they purchase at retail are safe to consume. The FDA is actively evaluating alternative approaches for its annual evaluation of laboratories that test required Grade A milk samples, which is the purpose of proficiency testing and evaluation programs. FDA will keep all participating laboratories informed as new information becomes available.”

The paused program was a proficiency check for laboratories, not a test of the milk or dairy products themselves. It served as an internal evaluation tool to ensure FDA-affiliated labs could accurately analyze milk samples. Many of these labs are also evaluated by third-party programs to ensure proficiency. Under the proficiency program, labs are asked to test milk samples spiked by FDA with microbiological, animal drug and chemical contaminants. The labs are evaluated on whether their results concur with those of FDA reference labs for each sample. FDA spikes the samples, analyzes them and then allocates them into appropriate shipping containers and sends them to labs for analysis. The results need to match closely the results of FDA plus or minus a small percentage. FDA has stated they are committed to finding alternative methods to maintain the lab performance monitoring and will share those alternatives when identified.

2. Colors. I don’t want to say I told you so, but for years I’ve been encouraging processors to clean up their labels and eliminate artificial additives, with colors being the biggest one. 

The FDA, which is part of the U.S. Department of Health and Human Services, intends to phase out all petroleum-based synthetic dyes from the nation’s food supply and plans to work with food and beverage companies to do so., according to Robert F. Kennedy Jr., secretary of HHS, in an April 22 news conference. The FDA is fast-tracking the review of calcium phosphate, Galdieria extract blue, gardenia blue and butterfly pea flower extract as new alternatives for color.

My colleague Jeff Gelski at Food Business News wrote a comprehensive synopsis HERE.

3. Sugars. After eliminating dyes, I’ve been encouraging processors to reduce added sugars for years. And kudos to the many of you who have already done so. During that same news conference, RFK Jr. called sugar a “poison” that was giving America a “diabetes crisis.” Read more about what he said and how the Sugar Association responded HERE.

3. Clean Labels in Schools. IDFA has been busy. The same day as RFK Jr. demonized synthetic colors, added sugars and food additives, in general, IDFA announced the “Healthy Dairy in Schools Commitment.” This is a voluntary, proactive pledge to eliminate the use of certified artificial colors in milk, cheese and yogurt products sold to K-12 schools for the National School Lunch and Breakfast Programs by the start of the 2026 to 2027 school year, or July 2026. 

The goal of the Commitment is to eliminate the use of Red 3, Red 40, Green 3, Blue 1, Blue 2, Yellow 5 and Yellow 6 in any milk, cheese, and/or yogurt products sold to K-12 schools for reimbursable school meals. Today, the vast majority of dairy products sold to schools do not contain any certified artificial colors, as most dairy processors have chosen not to use or decided to remove or replace these ingredients in the past. Moving forward, all companies supporting the Healthy Dairy in Schools Commitment have pledged to discontinue products containing certified artificial colors or to reformulate products with natural ingredients, joining the majority of companies that will continue making products for schools without certified artificial colors. At the same time, dairy companies will continue to reduce added sugar and work with school nutrition professionals, parents and students to educate them about the benefits of milk, cheese and yogurt in healthy diets.

“Dairy products in school meals including milk, cheese and yogurt play a critical role in meeting child nutrition requirements by providing 13 essential nutrients students need for healthy growth and development,” said Michael Dykes, president and CEO, IDFA. “Milk is the top source of calcium, potassium, phosphorus and vitamin D in kids ages 2 to 18. Cheese provides a high-quality source of protein, calcium, phosphorous and vitamin A. Yogurt is a nutrient-dense food that is a good source of protein, calcium, riboflavin, vitamin B12 and phosphorous that may reduce the risk of type-2 diabetes. The Healthy Dairy in Schools Commitment further demonstrates our industry’s longstanding promise to provide healthy, nutritious dairy options to school kids everywhere.”

Five states--Arizona, California, Utah, Virginia and West Virginia--have already passed laws banning the use of synthetic colors in foods sold to schools, and others are likely to follow suit, signifying a new attitude by states to go beyond federal regulators. 

5. Reformulations for Retail. The Healthy Dairy in Schools Commitment does not apply to foods that fall outside of reimbursable school meals. Don’t let that stop you, or let it stop you from reformulating all synthetic colors out of all the products you manufacture, for schools, for foodservice and for retail. 

Snacking Shows No Signs of Slowing. It’s Time to Differentiate in the Protein Space with Strong Messaging.

 

Will consumers’ appetite for protein eventually get satiated? It will. But when, nobody knows, so for now, Go Dairy, Go! 

Before it gets satiated, it should get differentiated. It is paramount processors emphasize the power of dairy proteins. A great place to start doing this is with dairy snacks. (And by the way, almost all dairy foods can be marketed as snacks. The exceptions are butter and creamer, and I’m sure some TikToker can make that happen.)   

“Snack Unwrap: The Insatiable Craving for Growth,” is a recent research report from Circana. It explains how health goals, economic pressures and evolving lifestyles are reshaping U.S. snacking habits. The report emphasizes the essential role of innovation in fostering growth within the fast-paced and highly competitive snacking industry. 

 

 

“Snacking continues to play a vital role in consumers’ lives, meeting needs ranging from quick hunger fixes to indulgent cravings and wellness goals,” said Sally Lyons Wyatt, global executive vice president and chief industry advisor for Circana. “While snacks have driven dollar sales growth for years, unit sales tell a more nuanced story, with declines in 2022 and 2023, a softened decline in 2024, and a renewed dip as 2025 begins. This underscores how consumer snacking habits are evolving. Brands have a significant opportunity to adapt by leveraging health trends, personalization and innovation to align with these shifting preferences and expectations.” 

Key insights include:

• Snacking Frequency Remains High: Despite economic uncertainties, snacking remains an integral part of daily life for U.S. consumers. Nearly half of Americans (48.8%) snack three or more times a day, a 2.7% increase year-over-year, with younger demographics (ages 18 to 44 years) leading the charge.
• Healthier Options on the Rise: Consumers are increasingly seeking snacks that align with their dietary and wellness goals. Approximately 64.1% actively look for snacks perceived as “good for them,” marking a significant 7.4% increase since 2020. Categories like yogurt, natural cheese and high-protein options are experiencing robust growth due to their nutritional appeal.
• Macroeconomic Influences Drive Value-Oriented Choices: Rising concerns about inflation and cost have led to more strategic purchasing practices. Consumers are still turning to multipack and variety options. In addition, sales growth of private-label snacks is outpacing branded products in several core categories.
• Innovation Fuels Consumer Demand: From functional snacks with health benefits to indulgent treats with nostalgic twists, brands are successfully appealing to diverse consumption needs. Viral flavor profiles such as ube, peri peri, and matcha are fostering curiosity, while collaborations between brands are creating buzz-worthy products.
• Emerging Channels and Trends: Online sales of snacks continue to climb, with nearly 50% of consumers stating they are purchasing snacks online in 2024. Convenience, flexible delivery options and price-surfing behaviors have all contributed to the growing prominence of e-commerce in the snacking sector.

“Snacking has evolved beyond simply satisfying hunger; it has become less about impulse and more of a reflection of personal values, priorities and lifestyle choices,” said Lyons Wyatt. “From the rise of health-forward products to the experimental exploration of bold flavors, brands must adapt quickly to meet consumer needs and keep pace with shifting trends.”

(Click on infographic to enlarge.)

According to research from 84.51, the retail data science, insights and media company helping Kroger and its partners create customer-centric shopper journeys, shoppers are increasingly prioritizing healthier food choices, yet they still face several challenges in balancing nutrition with value. This shift in consumer behavior is creating valuable opportunities for brands to connect with health-conscious shoppers in meaningful ways.

Key insights include:

• There are Challenges. Forty-one percent of shoppers describe their current eating habits as healthy, but many are still struggling with challenges such as cravings for unhealthy foods (69%), the cost of healthy foods (49%) and time (45%), all of which can make sticking to a healthy eating plan difficult.
• Focusing on Snacks. Despite these barriers, consumers are adapting their shopping habits to meet their health goals. Nearly half of shoppers are focusing on healthier snacking, with many planning to eat more fruits and vegetables (66%), limit processed foods (51%) and pay more attention to food labels (28%).
• They Want the Scoop. Fifty-seven percent of shoppers want to receive nutrition information while shopping, presenting an opportunity for brands to engage customers with informative content that helps guide their purchasing decisions.

The tariff insanity suggests that American may have a lot more dairy proteins to consume. It’s time to innovate with dairy proteins and market their ability to make the body stronger and more resilient. 

Dairy snacks—healthful and indulgent options--present an excellent opportunity to communicate the benefits of the branched-chain amino acids in dairy proteins and how they assist with muscle building. It’s very common in Europe to see refrigerated dairy desserts, such as mousse and pudding, enriched with protein. Happy Spring!

 

Move over Hot Honey and Salty Caramel. Dubai Chocolate is the “IT” flavor for the year.

 

(A view from Burj Khalifa in Dubai.)

Dubai chocolate is a confection consisting of a chocolate bar filled with a blend of knafeh and pistachios. Pistachios most of us know, but knafeh may be new to those outside of Arab counties. Knafeh is a traditional Arab dessert consisting of pastry dough layered with semi-soft salty cheese that is soaked in a sweet-tasting syrup.
The Dubai chocolate bar was first created by Fix Dessert Chocolatier in Dubai and branded as Can’t Get Knafeh of It. The product was popularized on social media in 2024. Now it’s showing up as a flavor in other foods, with dairy poised to be a leader. 

 

Here are some key reasons and interesting facts: 

Unprecedented cocoa prices (due to supply)—and pending tariffs (due to insanity)—are making chocolate a challenging food ingredient. When it can be avoided, limited or even simulated, that’s a win for a company’s bottom line. Dubai chocolate can do that.  

Pistachios are a very political nut! They are native to the Middle East and Asia. Until the 1970s, the United States imported most of its pistachios from Iran, the still-global leader in pistachio production. While pistachio trees have long been grown in California, mass domestic production only started to take off after a ban on Iranian pistachios was enforced in 1979 due to the Iran hostage crisis. Now the U.S. grows its own pistachios. In fact, it’s the second largest producer of pistachios in the world. No tariffs here. (Such foresight!) 

Americans more than half-a-century old probably remember shelled pistachios as being red. Imported pistachios were dyed red—with, you guessed, now-outlawed artificial color—to hide imperfections, as the pistachios from abroad often appeared splotchy due to local harvesting methods.

Pistachios add texture, flavor and color (inherent green) to foods. Innovating with texture is hot right now.

You know what else is hot right now? It’s protein. Fifty pistachios (about 1-ounce) contain 6 grams of protein, 3 grams of fiber and 13 grams of healthful fats. They are packed with vitamins, minerals and phytonutrients. Expect them to soon be called a superfood. 

Pistachios are known as the “happy nut” in China because they appear to be smiling. They are a symbol of health and happiness. We can all use a little joy these days. 

Pistachio pudding has roots in Middle Eastern cuisine. Packaged pistachio pudding became popular in the mid-1900s. It’s a great dessert flavor and goes very well with dairy. 

Pistachio also pairs very well with other flavors, welcoming the opportunity for innovative mashups. Chocolate is the obvious. Berries and citrus help balance the nuttiness. Honey and caramel provide sweetness and depth, while a sprinkle of sea salt amplifies flavor.

 

National frozen dessert brand 16 Handles is rolling out Dubai Chocolate Frozen Yogurt this coming week. The new flavor provides permission to indulge. It is a creamy pistachio-rich base with crushed milk chocolate bites and a hint of cocoa. By turning the original chocolate bar inside out, each spoonful bursts with artisan green filling as the chocolate pieces melt in the mouth.

The launch comes on the heels of several other international-inspired flavor launches in 2025, including the world’s first Kulfi frozen yogurt in January. The ingredients included all-natural mango, pistachio, saffron, cardamom and rosewater. In March, 16 Handles debuted Mango Lassi, a new flavor based off the popular Indian yogurt-based tangy drink. 

Dairy Holland is introducing Amanti Cheese with real Figs. The company says it’s the perfect blend of sweet and savory, as the natural sweetness of sun-ripened figs complements the rich, creamy cheese.

I was fortunate to attend GulfFood in 2024 and had the opportunity to visit numerous grocery stores in Dubai. There’s a lot of opportunity to explore the flavors of this region, as they complement dairy very well. 

With fluid milk making a comeback, and yogurt sales skyrocketing, how about thinking beyond chocolate, strawberry and vanilla? Dubai chocolate may be the new salty caramel. Try it out in milk, creamer, yogurt and more. 

Lifeway Foods has a new Pistachio Rose Vanilla single-serve drinkable yogurt. It’s delish! You know what other popular Dubai-centric flavors taste great in dairy? It’s dates, cardamon and saffron.
I look forward to tasting your flavor innovation.
 

Highlights from IDFA’s Ice Cream & Cultured Innovation Conference

 

It was so amazing to kick off IDFA’s Ice Cream & Cultured Innovation Conference this week in Fort Lauderdale. With more than 260 industry professionals in attendance, and an information-packed agenda, this year’s conference was a huge success. Hopefully everyone made it home safe after many travel disruptions. My “direct” flight home to Chicago took more than 12 hours and included a stop in Milwaukee to refuel. 

In case you missed it, retail dairy volume sales were up in every category in 2024, according to Circana. 

What’s driving this growth? It’s innovation. And the conference was packed with innovation ideas, everything from boosting the fiber content of yogurt to positioning ice cream as a mood enhancer. 

Package is key, too. Pints are a powerful package size in the world of ice cream. By definition, pints hold 16 fluid ounces of product; however, for economics, some “pint” packs contain a little less.

Regardless of how much is inside, pints cost more--often a lot more—on a per-ounce-base than larger-sized ice cream containers. In fact, numerous artisan, hand-crafted brands command more than $10 per pint at retail. Such smaller-sized containers, though more expensive, invite consumers to try something new. There’s less product, and thus less risk of waste in case you don’t like it.

Here are 10 key take-aways from the conference. These are in reference to ice cream and cultured dairy.

1. SUGAR: Decrease, eliminate and go LACTOSE FREE.

2. Promote PROTEIN content.

3. Talk up CLEAN LABEL, MINIMAL PROCESSING and NUTRIENT DENSITY.

4. Speak to WOMEN’S HEALTH and WELLNESS.

5. Focus on GUT and IMMUNE HEALTH benefits.

6. NEWSTALGIA: Nostalgic with a timely twist.

7. SWICY: Turn up the heat with some sweet.

8. PLAY WITH TEXTURE: Crunch, crisp, chew, ooze, wiggle, and more.

9. Satisfy CHOCOLATE cravings with bits and pieces.

10. Make them go “WOWZA” with a mashup. Provide FLAVOR ADVENTURE.

And when doing this, make sure you know your target consumer and you give them what they want. According to recent consumer survey of more than 2,000 U.S. consumers conducted by Menu Matters at the end of 2024, consumers want something new. 

The survey showed that one in five consumers say there are too many versions of the same product on the store shelf. Fifty-five percent said that ‘new’ food experiences should feature new or unique ingredients or flavors. The consumer need here is for new sensory experiences. 

They want new ways to value. 

• 73%: Knowing where ingredients come from increases the value of a product
• 57%: Prioritize price as value, but 43% do not. Value is not always about price
• 55%: Prioritize quality
• 34%: Healthy
• 30%: Convenience 
• 30%: Uniqueness 

They want to escape the chaos of the world we live in. 

• 70%: Use foods and beverages as a form of escape.
• 33%: Ice cream can be selfcare 
• 37%: Look for new ways to live boldly. They always or regularly look for foods, flavors and ingredients from a place they’ve visited once they’re back home. The 10 busiest travel days in TSA history took place in 2024.

New is not Chocolate, Strawberry and Vanilla. If you are introducing a new product line, get a little more creative. Dubai Chocolate is the perfect example. Aldi in the U.K. is making it available in ice cream form. 

Inspired by the Dubai Chocolate Bar, which has gained hundreds of millions of views on TikTok and nearly 6.5 million Google searches in the past month, the ice cream blends rich chocolate with nutty pistachio in a crunchy, wafer-like texture.

There was a Dubai Chocolate ice cream innovation in the annual Innovative Ice Cream Flavors and Products competition held at the conference, and it was a winner! There were so many amazing concepts, and attendees got to taste them all, everything from classic flavors, such as brownie, coffee and mint, coupled with a newstaligic twist, to global flavors such as Yemeni Spiced Mocha and Thai Mango Sticky Rice, and spicy options like Blazing Mango Vanilla and Sweet Heat Peach.

“Every year, we are amazed by the creativity and quality of the flavors and products submitted to this contest. It’s inspiring to see the industry constantly pushing the boundaries of what’s possible for frozen treats,” said Roberta Wagner, IDFA senior vice president of regulatory and scientific affairs. “This year, we were especially excited by the diverse range of ice cream flavors and novelties. The competition truly highlighted the potential for flavor innovation, with entries ranging from timeless classics like vanilla and cherry to bold new combinations that were sweet, salty and even spicy! We look forward to seeing this industry continue to innovate and thrive.”

The competitions attracted 47 entries, allowing attendees to get a taste of the latest flavor innovations and providing a platform for entrants to feature their most exciting new products.

This year’s awardees of the Innovative Flavor and Product contests are:

Most Innovative Ice Cream Flavor (currently offered for sale in the market)

1st Place: Lavender Lemon Butter Cookie | Kent Precision Foods Group

2nd Place: Tipsy Peach | Hershey Ice Cream

3rd Place: Paloma Paradise | Baskin-Robins

Most Innovative Ice Cream Novelty (currently offered for sale in the market)

1st Place: Brownie Batter Cookie Dough | Hudsonville Ice Cream

2nd Place: Brownie Batter Ice Cream Sandwich | Hershey Ice Cream

3rd Place: Rainbow Sherbert Bar | Baskin-Robbins

Most Innovative Prototype Ice Cream Flavor (not yet in the market)

1st Place: Dubai Bar Bliss | IRCA Group

2nd Place: Lemonstachio Chocolate Chunk Cannoli | Publix Super Markets

3rd Place: Trolli Sour Blast | Baskin-Robins

Congrats! 

Offering Lactose Free Options Drives Sales, Grows Consumption

 

The global lactose-free dairy market was valued at $11.5 billion in 2021, according to a report published by Allied Market Research. The market is estimated to generate $24.4 billion by 2031, representing a compound annual growth rate of 8.0% from 2022 to 2031. 

Here’s what you need to know. Many consumers with lactose sensitivities strayed from real dairy foods because of the lactose content. Now, in their quest for nutrient-dense, minimally processed foods, they are coming back to the category because dairy processors have decided to either eliminate or break down that lactose in finished products in order to make the products more tummy friendly.

And it’s working. Even better, it’s working in fluid milk. Value-added fluid milk is driving volume sales. In fact, 2024 ended with volume milk retail sales posting growth (less than a percent) for the first time in a long time in a year of pandemic-free shopping, according to Circana data. Lactose-free milk is the leading form of value-added options driving this growth, followed by organic and grass fed. 

Note how today’s blog sponsor, Dutch Farms, calls out that its lactose-free milk is “real milk without the discomfort.” Shoppers want to better understand the foods they are buying and may require such explanations, especially with consumer demand for lactose-free dairy products predicted to grow rapidly over the next five years. 

Some of that growth will be coming from outside the supermarket. In early 2024, the U.S. Department of Agriculture (USDA) released a final rule to update meal patterns for the National School Lunch Program and School Breakfast Program. The agency re-emphasized lactose-free milk as an option in all reimbursable meals. Offering lactose-free milk as a choice to all students supports child health and nutrition equity in school meals.

 

Dairy checkoff initiatives in 2024 successfully increased milk consumption in schools by offering lactose-free options. The National Dairy Council (NDC) and American Dairy Association Mideast worked with Cincinnati Public Schools (CPS) to offer the country’s first single-serve lactose-free chocolate milk program. When compared to the rest of the district, the pilot schools experienced a 16% increase in milk consumption. 

The hugely successful pilot project has now been adopted district-wide, improving nutrition, boosting school lunch participation and reducing food waste. The Cincinnati model points to a promising path for milk in schools, as student bodies become more diverse and millions of children rely on school meals as their main nutrition source for the day.

“These are kids who may not be able to go home to a refrigerator full of food, and so it's our job to make sure that we are providing them with the most healthy and nutritious meals possible when they’re here with us at school,” said Jessica Shelly, director of student dining services for CPS. “Part of that is making sure they have all the nutrients and protein they need, and we know that milk plays a large role in that.”  

The dairy industry is uniquely poised to use the lactase enzyme to assist with converting milk’s inherent sugar--lactose, a disaccharide—into its sweeter-tasting monosaccharide units: glucose and galactose. It’s a win-win for marketers who want to make an added sugar content claim and consumers who avoid lactose because of digestive issues.

The other option is to use ultrafiltration to remove the lactose all together. This involves investment in filtration technology, whereas using lactase is the simple addition of an ingredient and some time for the enzyme to do its job. 

In case you missed it, the 2025 Dietary Guidelines Advisory Committee (DGAC) issued its final scientific report at the end of 2024. The DGAC advised the U.S. Departments of Health and Human Services (HHS) and USDA to continue to recommend that Americans consume three servings of dairy per day and that dairy products stay a distinct food group in recognition of their unmatched health and nutrition benefits.

Offering lactose-free options makes this recommendation easier to follow for those with lactose sensitivities.

“Twenty leading dietitians, physicians and public health experts that comprise the federal DGAC confirmed dairy products should continue to maintain a central, important role in federal nutrition recommendations for people beginning at a very early age and that most Americans should consume three servings of dairy per day,” said Roberta Wagner, senior vice president of regulatory and scientific affairs at the International Dairy Foods Association (IDFA). “The committee, which evaluates the latest findings and overall bodies of evidence in nutrition science, found strong evidence pointing to positive health outcomes from dairy foods. In fact, the committee includes dairy as a core category in the recommended ‘Eat Healthy Your Way’ dietary pattern alongside fresh fruits and vegetables, legumes and whole grains. 

“The U.S. dairy industry is pleased to see that the science has once again affirmed the unmatched health and nutrition benefits that dairy products provide to people of all ages. The DGAC scientific report confirmed lactose-free dairy as an integral part of the dairy group, ensuring dairy nutrition is accessible to all Americans. The report also highlighted the association between total and higher fat milk with favorable growth outcomes, including lower risk of obesity, in younger children. Dairy processors provide a wide range of nutritious dairy options, at a variety of fat and sweetness levels that can work within the healthy diets of Americans. No matter the level of sweetness or fat, milk, yogurt and cheese provide the same nutrient package of up to 13 essential nutrients.

“Unfortunately, the DGAC excluded a number of scientific studies which show the health benefits of dairy at each fat level. IDFA has for many months urged the Committee to disclose what research it would rely upon to form its recommendations, yet the DGAC science selection and review process remained opaque and unavailable to public review and comment until now, after the report has been submitted to HHS and USDA. There is robust evidence to support the federal government disposing of its outdated recommendation to limit dairy consumption based on fat level. The latest science shows that full-fat dairy products do not increase risk of cardiovascular disease or weight gain, and that they may in fact have positive health benefits. IDFA provided the Committee with the body of science to support this point, but the vast majority of those studies were ultimately excluded from DGAC review. IDFA encourages HHS and USDA to remedy this oversight in the final DGAs expected to issue in 2025, and to work to ensure a more transparent and scientifically rigorous process for the development of future DGAC reports.”

Those scientific studies that Wagner referred to show a relationship between dairy foods at varied fat levels and a reduced risk of cardiovascular disease (CVD), not an increase in risk. A 2016 systematic review, partially funded by NDC, found either a neutral or favorable association between dairy consumption and cardiovascular-related outcomes. The researchers emphasized that the recommendation to focus on low-fat in place of high-fat dairy is currently not evidence-based, and further research is needed to specifically address this key research gap.

Much of this has to do with dairy matrix, something researchers are still learning about. Scientists are starting to better understand that nutrients, when present in whole, minimally processed foods, interact with each other, impacting digestion and absorption. In the dairy industry, this is now called the dairy matrix effect, and it’s all about bioactives, which are small molecular compounds that have only recently been discovered. 

Basically, these components work together and are greater than the sum of their parts. Milk is more than a collection of isolated nutrients, rather milk is a complex matrix that truly is a powerhouse. Make it easier for consumers to reap the benefits of this matrix by going lactose free.