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.