Dairy delights

Dairy

Consumption of milk and dairy products grew by 3.2% over 2010, boosted by an increase in home entertainment, cooking and baking, writes Gillian Hamill

Brand Central

20 June 2011

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Despite Ireland’s recessionary challenges, the dairy sector performed relatively well in 2010, with volumes in retail multiples growing and prices stabilising, particularly in the last quarter of the year, according to the recently published National Dairy Council (NDC) Annual Review 2010 & 2011 Plan.

Savings are top of the consumer agenda. The NDC Review reports that more than two in every three people say they will continue to switch to cheaper grocery brands and increase their in-home dining and entertainment, in order to try to live within their much restricted budgets. However the report highlights that these trends, supporting home cooking and meal preparation, ultimately are of benefit to the dairy sector.

The increase in home entertainment, cooking and baking can be seen in the sales of cream which are (excluding doorstep and independents) up 3.5% in both volume and value terms in 2010.

Prices stabilising and volumes growing

Overall, the dairy market at retail level (excluding independents and doorstep sales) was valued at €1.04 billion in 2010, an increase of just .02% on 2009. However, with prices declining by only 0.7% in the last quarter, and strong volume growth, this gave a value growth of 2.7% for the last quarter of the year, which is the first value growth in two years. Thus, the dairy sector is showing similar trends to the rest of the grocery market, with prices stabilising and volumes growing.

The annual average rate of inflation for the year ending December 2010 in the food category, as published by the CSO, was -4.6%. But cream prices fell by only 1% and yellow fats by 3.2%. Thus prices in these two sectors held up better than in the food market in general. However milk prices fell by 5.5% and cheese prices by nearly 6%.

Overall consumption of milk and dairy products grew by 3.2% over 2010, but the consumer’s continued focus on saving money meant that promotional packs and larger more economical sizes performed well, so the volume growth did not lead to any strong value growth in the sector over the year. Again, the last quarter is more encouraging.

Private labels advance

Private labels are continuing to be a strong feature of the dairy market, with the multiples showing an increase in private label volume of 4%. However the news story is in the convenience sector, with a growth of 21% in value and 32% in volume bringing private labels’ share of symbols/forecourts to 18% of value sales.

According to Nielsen, the total volume of milk sales was up 2% on 2009, with the corresponding sales value showing a decline of 3.4% (excluding Dunnes Stores). When the independent and doorstep sales are factored in, the total volume of milk sold at retail level was therefore estimated at 578 million litres according to CSO and National Milk Agency figures. More milk is being sold in large pack sizes, and within the milk market, private label is doing extremely well, gaining 10 share points in the last two years, to bring its share to 43% of the retail market for milk.

Natural cheese beats processed

The value of the cheese category was €205 million in 2010, which was flat when compared with 2009. But there was a good growth in volume of 6% year on year. Sales of processed cheese continue to decline, as do speciality cheeses, perhaps in line with shrinking incomes, but natural cheese continues to grow, up 5% year on year, perhaps supported by promotional activity on grated and pre-priced packs, and consumers’ continued focus on home cooking and meal and sandwich preparation. Natural cheese now accounts for 60% of the market, with processed down to 24%.

The yogurt market has dropped back to €253 million in the last year. However, this is due to price declines as volume has grown by 2% reflecting strong promotional activity.

In the dairy category overall, the NDC remains positive about the future. If trends continue as forecast, 2011 should be a good year for the dairy industry, as prices stabilise and market values grow fuelled by strong volume gains, suggesting a recovery, albeit a slow one, and an increase of just 0.2% for the dairy market in 2011.

Cheese prestige

Dromona Cheese is made by Dale Farm’s master cheese-makers using only the freshest, premium quality milk supplied by local farmers. It has no less than 12 top awards to its name this year alone, including a prestigious World Cheese Award for Dromona Extra Mature. No wonder then that Dromona Cheese is sure to be the centrepiece of any ‘tasteful’ cheeseboard, the perfect sandwich filler or an essential ingredient for consumers’ favourite recipes.

Now available in six popular varieties – Mild, Medium, Mature, Extra Mature, Vintage and Lighter, and in a variety of formats including block, sliced and grated. The ‘new look’ Dromona Cheese range reflects the quality, heritage and variety of the cheddar.

New to the range is Dromona Lighter Cheese, which offers all the taste of Dromona Cheddar with 30% less fat. This new product is sure to appeal to consumers who want a lighter cheese without compromising on taste. Available in a 200g pack, Dromona Lighter is suitable for all the family and is ideal for sandwiches, salads and snacking. Having already won a Gold Award from the Frome and District Agricultural Society, Dromona Lighter Cheese proves it is possible to have it all; a healthier choice that still satisfies the taste buds.

Pleasing variety

The Dale Farm Spelga yogurts range continues to enjoy above market growth year on year, offering fresh, healthy, everyday, value for money products that are good for you and your family.

Thanks to its variety, Spelga continues to satisfy the needs of an entire consumer spectrum. The yogurts range includes the redesigned Low Fat Bio yogurts which are made with real fruit pieces but with less than 2% fat and are a great tasting way to look after yourself. The Crumbles range comes in a 150g twin pot with a mild and creamy yogurt on a layer of fruit, and a separate serving of crunchy biscuit crumble. With three fruit varieties to choose from – Rhubarb, Strawberry and Apple; the Crumbles range provides an ideal dessert or treat for the consumer. The new and improved Fat Free range, available in three flavours, has proven popular with those health conscious consumers who wish to watch their waste line without compromising on great taste.

Dale Farm’s Paul Grenville says: “At Dale Farm we are continually looking to extend and improve upon our existing range, making sure that we are meeting our customers’ needs with quality packaging and great tasting products that offer the consumer excellent value for money.”

New Avonmore Light 1% represents a fat reduction of 33% (1.5% to 1%) compared with regular low fat milk

Low fat milk just got lighter

Avonmore Milk, Ireland’s number one milk brand with a 25% value share of the market and the second largest grocery brand in the country, has reduced the fat content in its low fat milk with the introduction of Avonmore Light 1%. The move represents a fat reduction of 33% (1.5% to 1%) compared with regular low fat milk and comes with the Avonmore promise of no compromise on the nutritional goodness and great taste of low fat milk.

The impact of this introduction on the category is potentially very significant, following the publication of a report from the Irish Universities Nutrition Alliance (IUNA) at UCC and UC, which revealed that 63% of Irish adults currently consume too much fat in their daily diets.

The Avonmore brand currently enjoys a 25% value YTD market share of the milk category (source: Nielsen Scantrack Feb 20/11) and the move is expected to significantly grow its share in the low fat segment. This is in line with year on year growth trends in the category, the low fat sector has grown from 23.8% YTD 2010 to 25.5% YTD 2011, driven by the fact consumers are choosing to switch to lower fat milk as a convenient, healthier option.

The new launch will be supported by a significant brand marketing campaign including the Avonmore sponsorship of the weather on RTE and TG4 (reaches 89% of all adults 20 times over an average month), further supported with below the line, digital activity and a PR education and awareness programme with RTE Health of the Nation’s Dr Nina Byrnes.
Avonmore Light 1% is available nationwide now in 1 litre and 2 litre formats (RRP: €1.22 and €1.79 respectively).

Simply irresistible

April 2011 saw the launch of a range of Avonmore Cream Weatherline Stings focusing on the broad range of everyday occasions in which cream can be used and the appetite appeal that Avonmore Cream adds to any occasion. The key message “Simply Irresistible, Simply Avonmore” shows how Avonmore cream can transform much loved sweet and savoury occasions like meringues, strawberries, pasta and curry into a sumptuous affair.

Avonmore has a broad range of creams including Fresh Cream, Whipped Cream, Double Cream, Sour Cream and newly launched Cooking Cream. This new product is a great way to drive trial for the Avonmore cream range, as well as demonstrating how cream can be used in everyday dishes. Avonmore Cream Weatherline Stings will continue throughout 2011 to showcase the Avonmore Cream Range as well as new product and packaging innovation for Avonmore Cream. Avonmore Cream is the market leader in cream with 44% value share. (Source: Mat Nielsen 17 April 2011)

Recipes for success

To further drive cream usage and with a significant increase in consumer trends like cooking at home and cooking from scratch, Avonmore has launched a new recipe website, which you can visit at www.cookwithavonmore.ie. One of the key objectives of the recipe website is to give consumers lots of ideas on how to incorporate Avonmore products especially Avonmore Cream into simple everyday recipes.

New Kilmeaden Smooth & Mature has subtle sweet notes and a smooth and distinctive cheddar flavour

The website includes lots of recipes covering starters, main meals and desserts as well as tips and tricks, chef’s secrets, consumers polls, news and features from Avonmore. Consumers can also save their favourite recipes in their own online cookbook, sign up for free monthly newsletters, enter competitions, share recipes with friends and upload their own signature dishes.

Now you’re cooking

New to market, Avonmore Cooking Cream is a new product innovation, unique to the Irish market. With 50% less fat than standard cream but with no compromise on taste or texture, Avonmore Cooking Cream has a smooth, thick consistency for savoury dishes thus ensuring great results every time. With significant growth in cooking from scratch and entertaining at home, Avonmore Cooking Cream is ideal for savoury dishes such as curries, pastas and sauces, and with 50% less fat and a smooth texture, provides consumers with an excellent alternative to full fat creams.

Kilmeaden Lighter offers a low fat Kilmeaden option, available in both red and white cheddar

Avonmore Cooking Cream comes in a handy pot with pouring spout and re-closeable lid for easy storage. Avonmore Cooking Cream is featured strongly on Avonmore Cream Weatherline stings and on Avonmore’s recipe website.

Delighting cheddar lovers

Kilmeaden has added two new blocks to the range. Selected by the brand’s expert grading team, new Kilmeaden Lighter has only half the fat of standard cheddar but the same Kilmeaden taste. Kilmeaden Lighter is available in both red and white cheddar and is specifically for Kilmeaden lovers who are looking for a low fat Kilmeaden option.

Also new to market, Kilmeaden Smooth & Mature, is a Kilmeaden cheddar with subtle sweet notes and a smooth and distinctive flavour. Kilmeaden Smooth & Mature is for current cheddar lovers who are interested in trying new and different cheddar profiles from Kilmeaden, the number one selling mature block brand. Both Kilmeaden Lighter Mature and Kilmeaden Smooth & Mature performed strongly in consumer taste tests and carry the heritage, craft and taste credentials of Kilmeaden, the number one selling mature block in Ireland.

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