The ‘Whey’ to Grow

It’s hard to believe that a product created by accident thousands of years ago — when someone stored milk in a warm climate — could have the power to take a nation by force today. But sure enough, yogurt’s popularity in the United States continues to surge.

According to “Category Insight: Yogurt and Chilled Desserts,” a July 2014 report from Mintel, a global market research firm, U.S. retail sales of yogurt increased to $7.4 billion in 2013 and are predicted to reach $9 billion in 2018. And retailers have a great opportunity to create new, unique products that get shoppers to choose store brands for their yogurt fix.

What drives them to buy

Among the various drivers of yogurt purchasing, flavor is the most important. Beth Bloom, food and drink analyst with Mintel, says the majority of yogurt and yogurt drink buyers identify flavor as their leading purchase driver.

Doug Ricketts, director of sales — retail at Upstate Niagara Cooperative Inc., Buffalo, N.Y., says it’s important for retailers to maintain the top-performing flavors.

Which flavors sell the best? According to the November 2014 “Yoghurt and Sour Milk Products in the US” report from Euromonitor International, London, the leading flavors of fruit-flavored yogurt continue to be strawberry, blueberry and mixed berries. As for non-fruit-flavored yogurt, the leading flavor is vanilla.

But retailers might not want to limit store brand offerings here to the classics; Ricketts adds that many consumers enjoy the unique flavor profiles that can be found in the yogurt category.

“We are beginning to see more indulgent flavor profiles — chocolate, salted caramel — being introduced in the category,” he says.

Yogurts with toppings and unique dessert blends, too, are increasingly appealing to shoppers, as these items satisfy the need to indulge, says Pamela Zager, marketing director for Batavia, N.Y.-based Alpina Foods Inc.

And protein-rich yogurts continue to see high demand. Retailers need to continue their expansion of Greek yogurt, known for its low fat and high protein content, in their store brand programs, Ricketts says.

Some brands even are adding chia seeds to give yogurt a protein boost. As an example, Mintel points to Alpina, which recently introduced its Alpina Greek Artisan Granolas Tropical Chia Nonfat Yogurt.

“However, it also provides other health benefits such as dietary fiber, omega-3, minerals and antioxidants,” the report explains. “Additionally, chia’s unique water-binding ability also contributes to high satiety.”

Command attention

Of course, the right package helps to sell more store brand yogurt products. For on-the-go shoppers, for instance, Ricketts advises retailers to grow their selection of “more portable formats” in bottles such as yogurt drinks and smoothies.

In addition to bottles, pouches could increase the chances of busy consumers purchasing yogurt, Bloom advises. Communicating the amount of time these products can last without refrigeration, too, could help win the sale.

In terms of visual appeal, bold colors could help packaging pop on shelf, even from a good distance, as shoppers can see colors up to 30 feet away, Zager says. Beautiful imagery also helps.

But be careful not to make the design too crowded, Zager warns. Simplicity is key.

“One way to make sure you do not crowd your messages with words is to include eye-catching icons that show off your selling points,” she says, pointing to icons communicating “100 calories,” “gluten-free,” “0 grams of fat” and more as examples.

Whatever the design, dont be afraid to spend a little more money to communicate quality, Ricketts advises retailers. Minor costs added to the packaging could result in stronger sales.

And consider offering multi-packs, Ricketts recommends, as consumers typically purchase four to six units of yogurt in one trip.

As for merchandising, retailers could appeal to male consumers by marketing their own-brand Greek yogurts protein-rich qualities. Mintel notes that Danone did this with I its Dannon Oikos yogurt in the United States, running a creative campaign in Men’s Health magazine comparing the yogurts protein content to that of chicken, hamburgers and eggs.

Do consider marketing Greek yogurt to men as a protein-rich food option.

Don’t settle for bland packaging — make it colorful and attractive.

Do offer unique and indulgent flavors of store brand yogurts.

Don’t neglect top-selling yogurt flavors such as vanilla, strawberry and blueberry.