Northeast Dairy Magazine | Q2 2022

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2022 DAIRY TRENDS MAKING MILK MODERN

MilkPEP Webinar Highlights How Milk Can Stay Fresh in the Minds of Consumers

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attes and cold brew. Green juice. Protein shakes. Plant-based beverages. Wine in a can. Energy drinks and even bottled water. These are just some of the most popular beverages consumers are purchasing right now. So, where does milk fit in to this crowded selection of liquid refreshment? Making Milk Modern, a recent webinar presented by MilkPEP, discussed the opportunity for “milk to play in the modern beverage space,” offering some of the latest research on how the dairy industry can help make this delicious staple more competitive with so many other choices. Panelists included Kikke Riedel, vice president, strategy & insight, MilkPEP; Jasmin Esquivel, brand strategy direction, Grupo Gallegos, a marketing and advertising firm; Dana Colbert, vice president, Radius Global Market Research; and Laura Hoffman, senior insight strategist, Radius Global Market Research. “Modern is not something that consumers immediately associate with milk versus a milk-alternative that is relatively new to the market,” said Hoffman at the start of the presentation. The presentation based its target audiences on a “Love Meter,” a framework for understanding consumers’ milk engagement – both functionally and emotionally – that includes milk “lovers” (72% of the population) who are huge fans of milk, “neutrals” (34% of the population), who are considered “auto pilot” shoppers and are indifferent about milk; and “haters” (11% of the population), who do not believe in any of the positive aspects of milk. “Lovers” have a median age of 55 years, on the cusp of Generation X and Baby Boomers. “Neutrals” fall squarely into Generation X, and “haters” are primarily Gen Z and Millennials. It is, however, the “confused regulars” and the “doubters” that were the focus of the webinar, as they account for 37% of milk consumption nationwide and are considered a “critical source of volume to defend.” “Confused regulars” (primarily Generation X) are defined as those who believe in the functional benefits of milk but are confused by what they consider 30 • Northeast Dairy Foods Association, Inc.

conflicting information, while “doubters” (primarily Millennials and some Generation Xers) believe that milk has some benefits, particularly for their children, but tend to purchase alternative beverages for themselves.

SO, WHAT MAKES A BEVERAGE “MODERN”?

According to the webinar, these on-trend products have at least some of these five common characteristics: • Unique packaging that is different from that of store and mainstream brands in terms of container shape, design aesthetics and color • Manufacturing by smaller, lesser-known brands (particularly true in the dairy space) with store brands and mainstream brands often considered the least modern • An association with a recent, trending health benefit from ingredients, i.e., electrolytes, CBD or Kombucha • Distribution in specialty stores at a premium price, often with limited availability • Significant promotion on social media by celebrities or other well-known influencers While, admittedly, milk sits towards the bottom of the modern beverage scale, along with orange juice and many sparkling and still waters, it’s not always the product itself that can move its popularity. Often, it is what’s specifically in the bottle or even the look and make-up of the container itself that can drive consumers to various milk products. For example, Northeast Dairy Foods Association member Ronnybrook Farm Dairy Inc. has a retro-shaped glass milk bottle that gives consumers the feeling that old is cool again. “The bottle doesn’t look like a typical milk carton or jug, so it felt like it may be a more modern brand of dairy milk,” said one doubter surveyed, reflecting the popular opinion that visually appealing and unique packaging really does seem to matter to consumers when it comes to any beverage. Clear glass bottles that can be reused or at least recycled are very popular with consumers, as is any kind of packaging


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