NOVEMBER 2024 vol. 125 no. 11
IN THIS ISSUE
FEATURES
Dairy Foods Extra
On Sept. 23, Danone offered to pay some $283 million — $25 per share — to purchase the 76.6% of Lifeway Foods it does not already own. Whether this transaction is consummated relies on several factors, including a shareholder vote. But what cannot be denied is Lifeway Foods’ impressive growth, based primarily on sales of its popular kefir products.
125th Anniversary
Although Dairy Foods’ 125-year is clearly impressive, many industry suppliers have tremendous histories of their own. Here, some dairy industry suppliers present a photo from their history, as well as a caption. We hope you enjoy this retrospective.
State of the Industry
Find out which categories see sunny skies, and which ones are going through a stormy season. Please see all of the categories featured in this issue below.
The outlook for U.S. dairy products in 2025 varies by product. The two exports with the most-clear trajectories are cheese and skim powders (nonfat dry milk (NFDM)/skim milk powder (SMP). Available supply in the U.S. looks like it will be the main drivers for cheese and NFDM/SMP, while the other products will be driven by a combination of the other factors.
Like a powerful blizzard blasting the landscape, health and wellness is socking it to the dairy ingredients’ sector. But rather than snow, ice and high winds pelting consumers, shoppers are facing a deluge of such positive elements as products that are low in sugar, high in protein, and those that contain prebiotics and probiotics.
Sponsored by IFPC.
The good news is the entire butter/margarine/spreads category saw growth in the 52-week period ending Aug. 11, according to data from Chicago-based market research firm Circana. Dollar sales ticked higher by 1% year over year (YoY) to $7.3 billion, with unit sales increasing the same 1% figure to 1.6 billion.
Like several other categories, overall, the skies are cloudy for non-dairy beverages, but with little rain predicted. Sales in the vast category are mixed year-over-year (YoY), but there are plenty signs of strength. Declining subcategories certainly did not take it on the chin, perhaps a good sign for the industry.
Sponsored by Cargill.
The magnanimous cultured dairy category — comprising such diverse segments as cottage cheese, yogurt, drinkable yogurt, kefir, sour cream, cream cheese and refrigerated dips — is like a clear-blue summer sky with resurging, in some cases, double-digit growth that is “eclipsing” much of the dairy industry.
Sponsored by CEM.
When exploring the State of the Industry of cheese, it’s “summer lovin’” for the $68.1 billion cheese category, which has been bolstered by strengthened per capita income, enabling consumers to “trade up” for more artisanal premium cheese.
Sponsored by Nercon.
Overall, ice cream/sherbet sales rose by 3% year over (YoY) to $8.6 billion for the 52 weeks ending Aug. 11, according to Chicago-based market research firm Circana. Unit sales picked up 0.5% YoY to 1.84 billion. Frozen novelty sales ticked slightly higher by 1% YoY to $8.74 billion, while unit sales for the period ending Aug. 11 declined by a small 0.2% to 1.86 billion.
Sponsored by Nelson- Jameson.
Market research firm Circana reports that in U.S. multi-outlets and convenience stores for the 52 weeks ending Aug. 11, the overall milk category, comprising refrigerated milk, refrigerated alternative milk, “all other” refrigerated milk and non-dairy refrigerated milk, notched $19.6 billion in dollar sales at a slight 1.2% decrease over the prior year. In the “all other” refrigerated milk segment, however, it was near-perfect fall sunshine with 21.2% growth and $252 million in sales.
DEPARTMENTS
Eat. Drink. Dairy.
A.1. debuts first innovation outside the sauce bottle with A.1. Steakhouse Butter; BODYARMOR transports fans to an NFL combine; Nurri’s Chocolate Ultra Filtered Milk Shake boasts high protein and low sugar.
