Making Milk Modern

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

Lattes 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 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

Photo courtesy of MilkPEP.

that is considered eco-friendly and/or biodegradable, like compostable cardboard.

On the other hand, Organic Valley Dairy Milk, a brand that does come in a traditional carton, was still noted as being modern due to its product’s natural processes. Popular brand Fairlife!, too, was considered modern for both reasons – an unusually shaped bottle and the impression that the brand is “taking a more ethical stance to how they produce and process their milk.”

DESPITE POPULARITY OF MILK ALTERNATIVES, CONSUMERS HAVE AN EMOTIONAL CONNECTION TO MILK

According to this webinar, plant-based milk alternatives, particularly those made from oats and peas, are considered very modern, even beating out almond milk, which has become somewhat of a category staple.

The good news for fluid dairy milk is that many consumers say they have an emotional connection to beverages in the dairy space because they simply enjoy a great glass of milk or have a connection to happy childhood memories like milk and cookies. Consumers say that milk “feeds the soul” in ways that other foods and beverages do not.

In addition, today’s consumers are looking for real, natural beverages that are not altered or ultra-pasteurized, as well as organic products that are not highly processed or artificially manufactured. They want smaller, lesser-known brands that are more “craft-like” (similar to the current popularity of craft beer). These are often perceived as more caring than mainstream brands, as are organic brands that seem to connect clearly with the concept of “modern” due to the association with a better treatment of animals and a more natural process.

Value added is also critical in making milk modern. Consumers already assume that cow’s milk contains protein, calcium and Vitamins A and D, but they want more, including: • No antibiotics or hormones • Lower sugar options • Added protein and iron for muscle building and growth • Immunity boosters • Lactose free options for easier digestion • Pre and probiotics for better digestive health • Anti-inflammatory benefits • Collagen for improved skin

And, finally, making milk modern also means offering something that tastes great – and a bit unique. Although only 6.6% of dairy milk is flavored (in comparison to 43% of milk alternatives), today’s consumers are leaning towards interesting flavors like caramel, raspberry, berry blends, banana, peach and dark chocolate. However, these delicious flavors are still expected to be naturally derived. This is a huge opportunity for the dairy industry, as consumers like flavored milk and want more of it.

While milk is seen as a traditional staple, there is potential in making it stand out in an ever-growing beverage case. The momentum is there, as is the potential for those milk products that market themselves as premium, unique, full of health benefits and in keeping with the values of today’s savvy consumer.

Editor’s note: Information from Making Milk Modern was based on data from Simmons Research, LLC, and IRI.