With health proving a major focus for consumers across the grocery sector, dairy is ideally placed to capitalise on its natural goodness. Not only that, but clever brands are creating ways to drive sales in what is a relatively flat market, through providing more on-the-go choices with different (and ingenious!) taste combinations and added nutritional benefits
15 March 2017
AT A GLANCE: DAIRY
- Avonmore Super Milk is a significant growth brand for the category, with the brand’s strategy since 2014 delivering year-on-year growth in what is a relatively flat market
- From April onwards this year, Avonmore has several innovations in the pipeline, including something completely new that targets female shoppers, some new Mooju flavours and a new flavour to the Avonmore Protein line-up
- Snacking is firmly a part of people’s lives and is currently worth €2.1bn* with 96% of people in the ROI snacking once a day or more**
- With cheese penetration flat at 98%,** there is a real opportunity to deliver growth by opening up adult snacking within the cheese category and creating more opportunities for shoppers to love cheese
- Kerry Foods believes GoGo’s will resonate strongly with Irish shoppers as the company’s research shows that 72% prefer to see healthy snacks over confectionery***
- 27% of consumers are willing to pay more for snacks that have positive nutritional benefits, according to Kerry Foods’ research****
- Adult cheese snacking is an under-developed category in Ireland, with the UK market being the equivalent of 2.5 times its size*****
- The NDC Guarantee gives consumers the opportunity to show their support for the 12,415 local jobs on dairy farms and in the dairy sector in an active way, when deciding what milk or cream to buy
- Charleville Snackfuls Bites are ideal for those who are looking for a more nutritious alternative to traditional snacks, with 9g of protein per serve
- Bursting with fruit, Glenilen Farm Thick and Fruity has an average of 20% (average 8% in similar products) fruit content in each of its 450g serving pots
- Glenisk now employs 70 people directly and works with 50 small family farms across Ireland to source organic cow’s milk and goats milk.
- Connacht Gold’s Half Fat Real Butter contains no vegetable oils or chemically treated fats, with half the fat
*(Source: Nielsen, 2016 – IE)
**(Source: Mintel, 2016)
***(Source: Kantar, 2016
****(Source: Nielsen 2015. Global Health and Wellness Report)
Q & A with…
Tim Ryan, head of marketing, Glanbia Consumer Foods
Q: Why should retailers ensure they stock Avonmore Super Milk? How will it make their store more profitable?
A: Avonmore Super Milk is now a significant growth brand for the category. Our strategy since 2014 has delivered year-on-year growth in what is a relatively flat market. When we talk to our customers about Super Milk they are really aware that Vitamin D is top of mind for consumers and a big trend in the last few months. We believe that Avonmore Super milk is the most convenient way of getting that daily amount for all the family. Recent research has also highlighted the importance of Vitamin D to help against the common cold. Given the scale of the brand now, it’s really important to stock up on both the whole and low fat variants and ensure that you have both the family pack and the one litre pack available for customers.
Q: How extensive is the marketing campaign planned for Avonmore Super Milk this year?
A: We have a brand new campaign which launched a few weeks ago which dramatizes something that we all talk about on a daily basis. Given that vitamin D is also known as the sunshine vitamin, the campaign urges consumers not to be overly concerned about the weather because Avonmore Super Milk has all the sunshine vitamin D you need in just one glass. We have a significant investment in 2017 against all our value-added range across TV, outdoor, online, social and experiential.
Q: How do you ensure the brand’s marketing appeals to all ages?
A: Our brand purpose for our value-added range is around better nutrition though every stage of life’s journey. Borrowed from Glanbia’s overall purpose, this is our mantra for creating great consumer brands such as Avonmore Protein Milk. This brand targets exercise enthusiasts and our research has shown that they have adopted Protein Milk as an important part of their training. We have seen great growth in the last year across all channels with front of store playing a large part in this. Our new campaign for 2017 positions the brand as one of the essential tools in recovery. Every single thing counts when you are in training, says Ian Madigan on the latest video for the brand.
Q: How important is it to continually innovate within the dairy category and develop added-value propositions such as Super Milk?
A: Innovation is essential and we have some great new products in the pipeline from April onwards this year. We have something completely new that targets female shoppers, some new Mooju flavours which have scored very well in research and the addition of a new flavour to the Avonmore Protein line-up! The beverages category is a really competitive space but we see milk having a really unique role to play. Consumers understand the role of calcium in milk and the fortification that we add – there’s a formula that we have and we pretty much stick to that in our NPD process.
Q & A with…
Zoe Kavanagh, CEO, National Dairy Council (NDC)
Q: The National Dairy Council has a strategy for sustainable growth and development of the dairy category. What part can retailers and suppliers play to help achieve this growth?
A: The NDC’s mission is to champion the role of quality pasture-based dairy and its nutrition benefits in supporting healthier, more active living. Through a partnership model we deliver far greater awareness of milk and dairy nutrition benefits for healthy, active living from childhood to old age.
Working with retailers to communicate the health benefits of dairy through innovative category management solutions is an area worth exploring. For example, why not position dairy products beside vitamin supplements in-store to reinforce the natural affordable nutrients in milk, yoghurt and cheese?
In Ireland, we’re privileged with a grass-based system which facilitates sustainable growth for the industry. Retailers form part of the communication and sourcing strategy which retains consumers’ connection with Ireland’s dairy heritage. Our domestic market credentials must remain impeccable from farm to kitchen table.
Q: Can you explain more about the NDC Guarantee and its importance for consumers?
A: In September 2009, the National Dairy Council introduced a packaging mark giving consumers in the Republic of Ireland the reassurance of knowing that if they buy milk or cream with the NDC Guarantee, it is both farmed and processed locally in the Republic of Ireland.
The NDC Guarantee gives consumers the opportunity to show their support for the 12,415 local jobs on dairy farms and in the dairy sector in an active way, when deciding what milk or cream to buy. Origin and quality are top of mind for consumers in the context of food safety and in the context of the heightened awareness of the value of supporting our local economy brought about by the recession.
There is also a growing appreciation for the superb pasture basis for dairy farming which we enjoy, which is a very natural environment for cows. Local dairy farming represents a style of sustainable dairy farming that consumers are also increasingly interested in.
Q: What have the NDC’s major marketing wins been in the past year and how do you intend to build on this result in 2017?
A: One of our biggest campaigns in 2016 was the Powered by Dairy advertising and marketing campaign which was fronted by rugby players Rob and Dave Kearney, and appeared on outdoor, radio and online media. As we have gained excellent awareness of the campaign last year, this year we plan on bringing the concept of Powered by Dairy to the community and making exercise available for everyone no matter what their ability – it’s all about helping people to feel empowered to be healthy and get involved. We are now working on the next stage to this exciting campaign in 2017.
Ireland was a big winner at the 2016 World Dairy Summit, scooping the Yves Boutonnat IMP (International Milk Promotion) Trophy award for HealthFest. The objective of HealthFest is to promote dairy for teenagers and healthy living.
The National Dairy Council analysed Ireland’s current obesity crisis and the myths and misunderstandings around dairy and other food categories and created an event called HealthFest which takes place in April every year and is targeted at transition year students across Ireland. The NDC teams up with some of Ireland’s top experts in the area of health and wellbeing to provide teenagers with a scope of information on ‘Healthy Living’ through engaging and diverse talks. A combination of speakers that are existing TV personalities as well as speakers with scientific backgrounds ensures that teenagers are engaged from the outset and get a lot from the day!
Q: How do you work with health professionals in order to provide relevant nutritional information for different age groups of consumers? Why do you feel it is important to produce this information?
A: Everything that we do at the NDC is based on science – we have two nutritionists in-house who work with us across all our activities and campaigns. We work on the mantra of ‘Fact not Fad’ and we have full nutritional credentials to support the dairy category of milk, yogurt and cheese.
We work with a number of healthcare professionals outside the NDC as well as different stakeholder groups like Safefood, INDI, Healthy Ireland and Cappagh Hospital whom we have just launched a new partnership with in the area of bone health. We also regularly work with Food Health Ireland and commission research with various academic institutions around different elements of dairy consumption and insights. We also do a lot of work in the area of sports nutrition and have a partnership with Sport Ireland and the Institute of Irish Sport. Ultimately, we want dairy to be seen as part of Ireland’s healthcare solution.
Q: How has the NDC’s website been designed to make it user-friendly and useful for different visitors?
A: We have recently redesigned the NDC website to make it more engaging and user-friendly to anyone visiting the site. We have divided the site into four sections covering our core areas of Everyday Dairy Goodness, Our Business, Sports Nutrition and a special designated section for Healthcare professionals.
In the Sports Nutrition section for example we have a number of fun and insightful videos with athletes like the Kearneys taking us through their exercise regimen and a Q&A section with Dr Sharon Madigan, head of performance nutrition at the Institute of Irish Sport who takes us through the do’s and don’ts of optimum nutrition for performance. The site also includes lots of inspiring recipe ideas from Irish chef Clodagh McKenna and one of our ambassadors Derval O’Rourke.
Returning global explorers, emigrants and plain old holiday makers tend to always be in agreement: there’s no dairy in the world like Ireland’s. This reputation for quality is a key advantage for Ireland’s dairy manufacturers, and a unique selling point for exports. It does not mean, of course, that there is no room for evolution and innovation. An increased demand for healthier options and added nutritional benefits has seen brands stress the natural goodness of their ranges.
Meanwhile, newer brands are capitalising on millennial consumers, meaning that established brands have new competition among a target audience that may not be as brand-loyal as a previous generation. Brands are also emphasizing how their dairy products provide convenient, on-the-go snacks, with anything but boring flavours. For example, Ireland’s cheese snacking market is underdeveloped compared to the UK’s (the equivalent of 2.5 times smaller, to be exact), meaning there is a significant opportunity to grow purchase habits in this area.
Get set to GoGo!
Kerry Foods is set to explode adult cheese snacking through the launch of its new range called GoGo’s, which offers shoppers the chance to snack on tasty cheese bites alongside a range of tasty and nutritionally packed ingredient combinations, creating more moments for consumers to love cheese.
Snacking is firmly a part of people’s lives and is currently worth €2.1bn* with 96% of people in the ROI snacking once a day or more**. However, with cheese penetration flat at 98%,*** there is a real opportunity to deliver growth by opening up adult snacking within the cheese category and creating more opportunities for shoppers to enjoy cheese. Launching since February and located in the dairy aisle, GoGo’s will help retailers capitalise on this opportunity and drive incremental sales.
GoGo’s provides the goodness of cheese always fresh from the fridge, along with other tantalising ingredients for adults to enjoy and snack on throughout the day, like dark chocolate covered coffee beans. The brand is centred around enlivenment and delivering surprising ingredient, flavour and texture combinations that make nutritious food exciting for shoppers.
Initially, the new line-up includes three varieties with further flavour and ingredient combinations rolling out throughout 2017.
The new range includes:
- Full of Beans: Roasted edamame beans and chilli and lime peas, reduced fat cheese bites and dark chocolate covered coffee beans and pretzel sticks
- Oat-Tastic: Spicy roasted corn and roasted edamame beans, reduced fat cheese bites and fruity and seeded flapjacks
- Protein Power: Soy broad beans and roasted edamame beans, reduced fat cheese bites and Chorizo bites
Amanda Ryan, senior brand manager at Kerry Foods, comments: “With research showing that 27% of consumers are willing to pay more for snacks that have positive nutritional benefits****, we wanted to ensure our products are tasty and exciting but also deliver nutritional value. We know that many adults are looking for tasty snacks that make them feel good about what they are eating and that’s what we reflected in our GoGo’s innovation.
“We believe GoGo’s will resonate strongly with Irish shoppers as our research shows that 72% prefer to see healthy snacks over confectionery.** Finding a gap in the market, GoGo’s will disrupt snacking and revolutionise the dairy aisle with a range of products that allow shoppers the chance to experience interesting flavour combinations,” Ryan adds. “We are excited about launching this product and have a number of listings secured across the grocery and convenience channels.”
Rolling out since February, GoGo’s Full of Beans and Oat-Tastic are available in 55g packs (RSP: €2.00) and Protein Power is available in a 70g pack (RSP: €2.50). The launch is being supported through disruptive shopper marketing, sampling and geo-targeted digital campaigns aimed at disrupting snacking.
Banish the bland!
Kerry Foods has expanded the Charleville Snacking range with the launch of new Charleville Snackfuls Bites – a tasty new on-the-go snack from Ireland’s number one cheese brand.
Adult cheese snacking is an under-developed category in Ireland, with the UK market being the equivalent of 2.5 times its size*. Following a 2016 Great Taste Award on its Charleville Snackfuls Chunky Country Relish & Crackers pack, Charleville is perfectly placed to expand this.
At Charleville, the company believes simple pleasures should be celebrated and grabbed with two hands, grabbed in big wedge shaped chunks in fact. That is why Charleville is taking a stand, to banish the bland. Eat well, live well and get out there and enjoy it. That’s what Snackfuls are all about – a hearty whollop of flavour on-the-go. There are two great-tasting flavours in the range:
- Crunchy BBQ Bites: Charleville cheddar cubes, BBQ rice puffs, spicy jumbo corn kernels and roasted black beans
- Sweet Chilli Bites: Charleville cheddar cubes, chilli rice puffs, chilli and lime peas and soy broad beans
Charleville Snackfuls Bites are ideal for those who are looking for a more nutritious alternative to traditional snacks and with 9g protein per serve, consumers can live the good life on-the-go.
Rolled out since February, Charleville Snackfuls Bites retail in a 55g pack format for a RRP of €2 and can be found in the dairy aisle.
*(Source: Nielsen, 2016 – IE)
**(Source: Mintel, 2016)
***(Source: Kantar, 2016
****(Source: Nielsen 2015. Global Health and Wellness Report)
Bursting with fruit!
The latest offering from Glenilen Farm comes in the form of the ‘Thick and Fruity’ natural yoghurt range. Thick and Fruity is wholesome, pure and simple, with an authentic farmhouse taste, a new range which delivers the creaminess that you would expect from a Glenilen Farm product, with a fruity zing!
Made with natural probiotic ‘live’ yoghurt, the Glenilen Farm Thick and Fruity range is available in three tasty flavours including, Strawberry, Apple & Blackberry and a Thick & Creamy Vanilla. Bursting with fruit, Thick and Fruity has an average of 20% (average 8% in similar products) fruit content in each of its 450g serving pots, a fruity wholesome yoghurt to be enjoyed on its own or as a topping on your favourite snack. 2017 will also see the introduction of new limited edition flavours in the range.
Commenting on the launch, Alan Kingston owner of Glenilen Farm said: “The launch of Thick and Fruity is a new departure for Glenilen Farm as we have traditionally made yoghurts with our iconic layer of fruit with yoghurt on top. We are delighted to now have in our range this same combination of real fruit and live natural yoghurt but all stirred up together. It allows the consumer to enjoy Glenilen Farm yoghurt in a different way and appeals to existing and new customers of our yoghurt.”
A recent survey carried out by Glenilen Farm on ‘How You Eat Your Yoghurt?’ revealed some interesting results among yoghurt lovers:
- When opening your favourite yoghurt, it was found that 51% of respondents prefer to scrape the lid compared to 34% who see themselves as ‘lid lickers’, while 15% simply throw the lid away.
- The research showed that 62% of those surveyed think of yoghurt as a healthy food choice option.
- The survey revealed that a tea spoon (86%) is the preferred choice when tucking into a yoghurt.
- Liquorice, Turkish Delight, Pumpkin Pie and Cappuccino were highlighted as the weirdest yoghurt flavours respondents have ever tried. While eggs, toast and a pizza sauce were the strangest food items respondents have had yoghurt served on.
Resting on the banks of the river Ilen, in the lush hills of Drimoleague, County Cork, Glenilen Farm is the idyllic location for dairy farming, producing rich, tasty, pasture-fed milk which has become the core ingredient in all the Glenilen Farm products since 1997. Valerie Kingston began using this milk to make homemade cheesecakes for the local country market. Valerie’s cheesecakes, made with fresh, simple ingredients, quickly gained popularity and so started Glenilen Farm. What was initially a hobby continued to grow, and transformed the farm into a hive of activity, with the new Thick and Fruity range as its latest offering from Glenilen Farm.
The flavours in the range include the following:
- Strawberry: Made with natural probiotic ‘live’ yoghurt and strawberries. Specifically, natural yoghurt (74.5%), strawberries (20%), sugar (4.5%) and cornflour (1%).
Vanilla: Made with natural probiotic ‘live’ yoghurt and ground vanilla bean. The ingredients break down as follows; natural yoghurt (94.65%), sugar (4.8%), vanilla extract and ground vanilla bean (0.55%).
- Apple & Blackberry: Made with natural probiotic ‘live’ yoghurt and apple & blackberry. Natural yoghurt (75%), apple (12%), blackberry (8%) and sugar (5%).
The Glenilen Farm Thick and Fruity range is retailed at €1.99 and is currently stocked in Dunnes Stores, Tesco and a host of independent food stores.
For more information, visit, www.Glenilenfarm.com, Facebook:/Glenilenfarmdairy, Twitter: @GlenilenFarm, and Instagram: @GlenilenFarm #Glenilen.
Targeting an attitude
Butter is back. But category research shows that hosts for butter are changing as consumers, particularly younger generations, are adopting more diverse and varied diets. At the same time, consumers are seeking out modern, engaging food brands, with original offerings and clean ingredient labels.
Improper Butter is a flavoured cooking butter brand, engaging consumers through unique product offerings and targeted marketing campaigns. Improper Butter targets an attitude. According to the brand, the Improper Butter customer is interested in real ingredients, food provenance, cooking in, eating out, visiting food markets and traveling for new food experiences.
Improper Butter’s core flavours are Real Garlic Butter and Garlic and Chilli Butter. This year, due to retailer and consumer appetite, the company is also offering seasonal limited edition butters, including Rosemary and Lemon (spring), Harissa spiced (summer) and a festive must have, Sage, Rosemary and Thyme (winter).
This summer, catch the team cooking up Improper buttered, pan-toasted sandwiches at food festivals and events around Ireland.
Glenisk is the Cleary family business, located in Killeigh, just outside Tullamore, Co Offaly. The company is one of Ireland’s best-known and most sustainable food brands producing award-winning dairy and goats milk products.
Glenisk pioneered the organic sector in Ireland establishing a market at a time when there appeared to be little supply or demand for organic products. The company actively encourages dairy farmers to convert and create a value-added proposition for consumers. Glenisk is now Ireland’s biggest yogurt maker and one of the country’s fastest growing brands. The company now employs 70 people directly and works with 50 small family farms across Ireland to source organic cow’s milk and goats milk.
Glenisk is a flexible business, well positioned to take advantage of emerging trends and opportunities, with a history of moving first; as well as organic and goats dairy, more recent innovations include the brand’s Reduced Sugar range and Authentically Strained Greek Style Yogurt, which is the ‘Official Yogurt of Irish Rugby’.
Glenisk is certified by IOFGA (Irish Organic Farmers & Growers Assoc.) and by the British Retail Consortium (BRC). Glenisk is available in RoI and NI from all leading multiples, symbol groups and independents, and in the UK and UAE.
Real butter with half the fat
Connacht Gold is different and unique; it’s a brand that has something to say. Connacht Gold has a half fat real butter; a product containing no vegetable oils or chemically treated fats, only the natural taste of butter, with all the health benefits of half the fat.
As butter makes a comeback, Connacht Gold’s Half Fat Butter has grown in popularity as consumers move back to real butter, taking advantage of all the taste with half the fat. With the convenience of being packed in a tub, Connacht Gold’s Half Fat real butter has continued to go from strength to strength year-on-year.
Back on TV in 2016, Connacht Gold featured its Half Fat butter along with brand ambassador, blogger and businesswoman Pippa O’Connor. As the commercial aired, Connacht Gold began to educate consumers that the product is in fact real butter, even though it’s in a tub format.
Connacht Gold has recently launched a new product Connacht Gold Love to Bake; made with real diary cream this product is ideal for baking and the first of a range of new Love to Bake products that will come to market throughout 2017.
Dairy in Ireland: Comprehensive report by Euromonitor
A new report entitled ‘Dairy in Ireland’, published in December 2016 by Euromonitor reveals a host of useful statistics and insights about the category’s performance in Ireland. Looking firstly at the cheese subsector, cheese has increased by 5% in 2016, with sales projected to reach €226 million. According to Euromonitor, cheese sales have grown significantly over the past year due to several factors. The most important, however, is the continuing improvement within the wider economy which has led to increased spending power among consumers. Dairy products are also viewed more today as a healthy and natural food source, which are free from additives and artificial ingredients; therefore, health and wellness trends are also driving growth. Euromonitor also notes there has always been a traditional disposition towards cheese in Ireland, owing to the huge historical importance of the dairy industry. Over the past number of decades, however, greater interest has also grown in artisan cheese as well as the more common varieties.
Euromonitor reports cheese is anticipated to see continued growth over the forecast period, with a value CAGR of 3% predicted at constant 2016 prices. Value sales in 2021 are expected to amount to €259 million. Volume growth is expected to be at a slightly higher rate than that seen over the review period.
Drinking milk products
According to Euromonitor, drinking milk products have experienced current value growth of 3% in 2016, with overall sales projected to reach €521 million. Milk production in Ireland has been ramped up due to the abolition of EU milk quotas in 2015. The country’s dairy industry has benefitted in volume terms from the ending of the quotas due to the strong presence of milk production in Ireland. However, whilst production has increased, producers are continuing to focus greater energy on the export market and the global demand for good quality milk, particularly in emerging markets such as China. Economic improvements within Ireland in the latter part of the review period, with consumers having greater spending power, has curtailed the need for reduced price points and value sales have remained strong in 2016 as a result.
Euromonitor reports drinking milk products are expected to increase at a value CAGR of 1% at constant 2016 prices over the forecast period to reach €549 million in 2021. The majority of sales within the category are expected to continue coming from cow’s milk. New product developments are likely to spearhead growth, particularly those geared towards health and wellness, as well as fortified varieties such as milk with added vitamins and protein.
Yoghurt and sour milk products
Euromonitor reports the yoghurt and sour milk sector has seen current value growth of 2% in 2016, with it projected to reach value sales of €236 million. The sugar content of many yoghurt products hindered growth within the category over the review period. However, the category has returned to growth, due largely to the continuing rise in the popularity of natural, organic and Greek-style yoghurt products.
Yoghurt and sour milk products is expected to increase at a value CAGR of 2% at constant 2016 prices over the forecast period to reach €257 million in 2021. Yoghurt is expected to drive growth within the category. In spite of the increased prevalence of private label within the category brand innovations and products with higher health perceptions, such as high protein, low sugar and Greek-style yoghurt products are expected to facilitate growth.
Other dairy trends
Euromonitor’s report shows other dairy has experienced current value growth of 2% in 2016, which is similar to the growth seen in 2015, with sales projected to reach €143 million. Growth in this category remains relatively stable as Ireland’s wider economic situation improves and consumers enjoy increased disposable income. Consumer confidence in Ireland continues to rise, and one of the results of this is a return to spending on non-essential food items such as those found in other dairy. Growth within the category has two principal strands; health and wellness and indulgence. A great many of Ireland’s consumers are seeking healthier lifestyle choices, with this trend seeing the growth of categories such as fromage frais and quark and soy desserts. Additionally, Euromonitor states that consumers who for many years felt less able to indulge themselves in dairy desserts have once again been able to afford such luxuries as a result of the improvement in the economy.
Other dairy is expected to increase at a value CAGR of 2% at constant 2016 prices over the forecast period to reach €154 million in 2021. This would be stronger compared with the review period’s negative CAGR of 1%. This improvement is based on a combination of an increase in consumer spending in the category, and also due to the several new product launches that have occurred in recent years, which has attracted the attention of consumers.
For more information, or to purchase Euromonitor’s full report, visit www.euromonitor.com/dairy-in-ireland/report.