8 minute read
Flavoured Milk
All in the best possible taste...
Flavour innovations, price-marked packs and nutritional benefits are driving sales in the flavoured milks market, which is now worth £388 million (Kantar). By Kevin Whitlock.
For those of us of a certain age, ‘flavoured milk’ once meant a spoonful of Nesquik or instant coffee in a glass of the white stuff; to the slightly younger, it means a chocolate milk to help heal a student hangover. It was something of a niche line, something to get kids to drink more calcium-rich milk, or a protein-rich treatment for throbbing heads and indulgence-damaged stomachs.
Now, however, flavoured milk is a mainstream product, found in ambient fixtures and chiller cabinets in shops and wholesale depots the length and breadth of the land.
According to Mars Chocolate Drinks & Treats (MCD&T), a staggering 11.9 million households bought into the milk drinks category last year, with household penetration for these products at a record high, up 4.2% year-on-year (Kantar).
Michelle Frost, general manager, believes the market is being driven by flavour and free-from innovations and a growing consumer interest in the drinks’ functional benefits.
Chocolate remains the most important segment for convenience with a market share of 27% (about 95.3 million units sold) and value sales totalling £43.6 million a year (IRI), but coffee is the flavour that’s in growth, she says.
“Meanwhile, dairy alternative drinks are growing even faster and the market is now worth an impressive £361 million and shows no signs of slowing down with 30.4% growth year on year (IRI),” Frost notes. And within convenience, the category shows 40.3% growth and a value of £58.4 million (IRI) – it is an area the wholesale trade should really be getting their retail customers into.
MCD&T’s non-dairy range includes Galaxy, Bounty and Mars variants. MCD&T’s vegan drinks range (available in a 250ml format and approved by the Vegan Society) has performed “exceptionally well”, with sales now totalling £480,000, up 134% (IRI).
“More than 500,000 people signed up to Veganuary earlier this year, surpassing the 400,000 in 2020 (Vegan Society) and so we are delighted to be able to offer consumers additional ways to enjoy their favourite confectionery brands,” adds Frost, who is also keen to point out that MCD&T has recently completed its ambition to have all its milk-based and dairy alternative drinks as no-added-sugar products.
“We hope the move to no added sugar in our milk and dairy alternative drinks categories will encourage shoppers to opt for their favourite brands in a chocolate drink – confident that we’ll deliver on flavour whilst meeting demand for less sugar.”
Another important, almost iconic brand is Grace Foods’ Nurishment, which for the past 40 years has been a key line in UK convenience stores, in its famous ring-pull can (and now bottles). It was one of the first drinks to push added nutrients – protein and vitamins –as a selling point.
Bola Akintewe, brand manager, beverages at Grace Foods, says: “The flavoured milk market continues to provide value to the trade, despite prolonged lockdowns, growing value by 1.5% (IRI), and as restrictions start lifting there are indications that there is significant potential to grow further. To tap into this, suppliers need to focus on range in formats and flavour to increase appeal to consumers.”
Grace Foods says that Nurishment, which has driven 28% of the category’s value growth (IRI) and maintained its top five volume sellers, will continue its focus to bring value across the trade chain.
Boosting flavoured milk sales
Grace Foods offers advice that C&C/wholesalers can give to their retail customers: a Stock ready-to-drink bottles to target consumers who enjoy their flavoured milk drinking alone, whether they drink it on the go or as a treat at home. a Offer products with added benefits from trusted brands to give consumers choice on taste and enrichment, depending on their dairy drinking occasion and needs. a Site different formats, from easy-open and ready-todrink bottles to cans within the dairy fixture, to drive offtake when consumers are receptive to a milk purchase. a Leverage branded merchandising tools such as wobblers and shelf talkers/barkers to increase visibility to shoppers.
“Our focus in coming months is on growing distribution of our 330ml bottle range and dialling up awareness within the target audience that are looking for a tasty pick-me-up during the day, but in a ready-to-drink and single-serve format,” says Akintewe.
Nurishment will also be promoted with a through-the-line campaign as it turns 40 this year, “highlighting its unfaltering presence in the community that has provided a great mix of tasty yet enriching product to be enjoyed”, according to Akintewe. Promotions on both formats – bundle deals on Nurishment bottles and £1.19 price-marked packs (PMP) –will run during the warmer months to deliver incremental value to both retailers and consumers as lockdown restrictions lift.
Unsurprisingly, PMPs are widely seen as a key driver of sales in convenience stores. “Visible PMP pricing encourages shoppers to try new products with the confidence that the price will be the same next time they visit, encouraging repeat purchase,” says Michelle Frost of MCD&T.
Wholesalers, she adds, can play a vital role in educating retailers and getting them to consider the benefits of stocking PMPs which “offer consumers obvious value for money and price reassurance”.
As well as PMPs, ‘category champion’ brands (such as Mars, Nestlé, Yazoo, Nurishment) should be used both indepot and in-store to drive purchase and entice shoppers to the chiller –MCD&T’s Frost points out that despite many milk drinks being ambient, like soft drinks they are best presented to consumers chilled, “with on-the-go bottle tops providing a clear point of difference for those looking to drink on the move”. She adds that depots should also be stocking larger pack formats for consumers who enjoy milk drinks at home.
Yazoo, the flavoured milk brand from FrieslandCampania, is now available in a new limited-edition flavour: Choc-Orange. The variant, which comes in standard and £1 price-marked packs of 400ml, combines chocolate milk with “sharp, sweet citrus tones to entice shoppers into the category by offering a new flavoured milk experience”. The popularity of chocolate orange as a combination continues to grow, with a 52% increase in UK search demand for the flavour versus last year (Google Trends). The new flavour is supported by a marketing campaign that includes video on demand, print and digital advertising, social media support, nationwide sampling and shopper marketing.
Also new to the market is a chocolate flavoured milk from Jersey Dairy. Suitable for use in the home as well as in a range of foodservice venues, it is made from the milk of Jersey cows on the island of Jersey.
David Ashton, Jersey Dairy sales manager, says: “The high nutritional content – it contains a unique type of butterfat and more calcium and protein than milk from other breeds of cow, has a higher level of vitamins and minerals and is good for the immune system – makes it a healthy alternative to fizzy drinksor squash, so it will be popular with parents who want to keep a pack at home for making cold drinks or hot chocolate.
“In leisure outlets and coffee shops, it is great in thick shake machines, blenders or straight from the carton, offering operators a flexible solution for a full range of beverage options –it is a great product across all seasons.”
The chocolate flavoured milk is made from UHT skimmed milk, boasts a 12-month ambient shelf life prior to opening, and comes in cases of 12 x one-litre cartons.
When many out-of-home venues were closed because of lockdown restrictions, drink shoppers turned to retail, with take-home sales of dairy drinks up 8.4% in the past year (Kantar), reports Isla Owen, senior marketing manager at f’real, part of Rich Products.
“We also know that during the past 12 months, treating has overtaken health, with shoppers turning to more indulgent options as a reward or pick-me-up during these testing times,” she says.
“More people have turned to their local convenience store, both for the essentials and ‘treat’ items. Our blend-ityourself milkshake brand f’real is made with real ice-cream and allows shoppers to customise the thickness of the shake, so it’s the perfect indulgent moment.
“Restaurant quality products like f’real tie into the ‘hospitality at home’ trend we are seeing more and more of – shoppers looking for products that recreate the experience of eating out, especially with summer on the way.” CCM
