Plant of the Year winner is proof positive of an excellent trend

Milk was once thought of as the dairy industry’s weak link in terms of sales. But the 2025 Plant of the Year, California Dairies Inc.’s (CDI) Valley Natural Beverage facility in Bakersfield, Calif., proves otherwise. See article in this issue.

“Regarding both ESL (extended shelf life) and UHT (ultra-high temperature), there is a shortage of supply globally. So, our business has been growing strongly in the U.S. market, as well as global markets,” Brad Anderson, CEO of CDI, a cooperative owned by nearly 300 dairy farming families, tells Dairy Foods.

Consumers are seeking more specialized milk products that provide health and wellness benefits, Anderson adds. The 204,251-square-foot facility, open for less than a year, already boasts three lines, with a fourth on the way within a year. The ultimate goal is to have 12 lines upon full completion.

A new dairy manufacturing plant bodes well for the future of the dairy industry. I should also point out that we find out this month in our “Market Trends” article that another dairy beverage, kefir, is “knocking it out of the park,” as dollar sales rose 23% year over year (YoY) to $211 million during the 52-week period ending June 15, according to Chicago-based market research firm Circana.

To pick up my comments from my column last month, the dairy industry now has four categories of the double-digit dollar sales growth club as we identified thus far this year, based upon a YoY basis: cottage cheese, yogurt, refrigerated butter and kefir. As I have pointed out on past “Let’s Talk Dairy” podcasts, 3% growth in a dairy category or subcategory should be considered a solid outcome. In fact, Circana stated in late 2024 that it anticipated the entire food and beverage industry would see an increase of between 2% and 4% in dollar sales in 2025.

“Circana’s outlook, based on consensus from macroeconomists, assumes a moderate slowdown in economic conditions, including softer growth in 2025 than in 2024 for gross domestic product and disposable income, a slightly weakening job market, and stable consumer confidence,” the firm stated in that report.

“If economic conditions outperform expectations, we may see a slight decrease in volume growth as consumers dine out more, coupled with a stronger price/mix driven by demand for premium experiences,” the report added. “Conversely, weaker-than-expected conditions could reinforce in-home meal preferences but reduce willingness to pay for premium products.”

The dairy industry clearly has segments far outpacing the overall food industry, something I hope does not go unnoticed. The industry is flashing many positive signs.

On a separate but related note, new products, which dairy processors produce in droves, are a key reason for robust industry growth. Dairy Foods will be honoring one such product in next month’s issue, when we announce our Product of the Year winner as voted upon by you, our readers. I am looking forward to announcing our first winner in the contest, which I anticipate will become an annual tradition. DF

Brian Berk is Editor-in-Chief of Dairy Foods. Contact him at 516-402-1369 or berkb@bnpmedia.com.