Milk is very competitive but flavoured milks offer growth opportunities
MAINSTREAM milk is a very tight-priced and tough market at present. But the milk drinks sub-category – including flavoured and functional drinks in a variety of styles and formats – features a number of growing brands. And many milk drink suppliers are upbeat about the market at present.
The team behind Yazoo says flavoured milk is growing by 11.5% year on year. With a rate of sale said to be twice that of its nearest competitor and 49.5% of volume sales in convenience outlets, Yazoo is a must-stock, it argues.
Milk drinks aren’t just for kids, the team says, almost half are bought by shoppers aged 13-34 and those aged 19-25 are the biggest spenders. Women also buy milk drinks, spending on average £7.50 on eight purchases of milk drinks a year.
For both men and women, 77% of shopping trips for milk drinks in convenience stores are on impulse.
The team says Yazoo lends itself to cross promotions with snacks and as a part of meal deals. But it suggests targeting other uses such as taking the place of a missed breakfast or as a snack in the afternoon.
Yazoo 475ml bottles are the brand’s biggest selling lines and they’re now available in price-marked packs.
The PMPs offer retailers an easy on-shelf merchandising method that can trigger impulse purchases and yield good margin, the firm says.
• The number of flavoured milk purchasers among food-to-go shoppers is increasing significantly year on year and flavoured milk sales are over-indexing compared to soft drinks at morning occasions, according to Kantar findings, says Dairy Crest.
And the firm says its flavoured milk brand FRijj is overall UK number one, as measured by IRI for the year to 26 April 2014.
It launched a new range of coffee-flavoured milkshakes – Latte and Mocha – in March. They’re packed in a 220ml-sized bottle, which the firm says is perfect for on-the-go consumption.
Dairy Crest sees location and display of flavoured milk as very important.
It‘s important to position flavoured milks next to other on-the-go soft drink products, it says.
Dairy Crest research in January 2012 found that of shoppers who visited dairy chillers only 1.3% bought flavoured milk. When flavoured milk was placed with soft drinks the figure increased to 22%.
FRijj also has a range of long-life UHT products with 90-day minimum guaranteed shelf life. The UHT Fudge Brownie and Strawberry flavours are available in cases of 8 x 330ml bottles, with a recommended retail price of 99p. PMPs at 99p are also available
• Welsh dairy firm Trioni has launched Daioni, a range of organic, flavoured milks in cartons in three flavours, strawberry, chocolate and banana. Available in 200ml and 250ml sizes, the firm argues the cartons are perfect for grab-and-go purchases, multipack use (for example for children’s packed lunches) or as an everyday milk drink to have in the fridge at home.
The firm has also launched Daionic, a milk protein shake that contains flavoured organic semi-skimmed milk produced by Trioni and 36g of protein. The company says studies have shown that milk is the most effective rehydration drink and that teamed with extra nutrients it makes a great sports or meal-replacement drink.
For Laurence Harris, founder of Trioni, flavoured milk should, for marketing and merchandising purposes, be treated as a regular chilled drink and not be tied to the milk category.
“At Trioni we have found that most of our consumers for our Daioni organic flavoured milk purchase as a grab-and-go product or to have as a breakfast drink or with their lunchtime meal,” he said.
“C-stores need to make sure the product is accessible as a grab-and-go’ purchase, placed near the till point so that consumers can pick up a carton quickly, pay and leave.
“Chilled front-of-store gondolas are a great way to ensure consumers can pick up what they need quickly, pay and go. We have found that our Daioni flavoured organic milk in the 200ml cartons is perfect for on-the-go.”
• In July Mars Chocolate Drinks and Treats extended its 350ml milk drinks range with the introduction of Skittles Wild Berry milk drink.
Wild Berry is the latest flavour to be added to the Skittles range of bagged sweets.
The new milk line features bright purple packaging, designed, says the firm, both to stand out on shelf and to mirror the packaging of the confectionery line.
Mars Chocolate Drinks and Treats says the on-the-go cap that’s used on the pack helps make the drinks especially suitable for impulse outlets that sell drinks to be consumed on the go.
And while the company recommends displaying the drinks in chillers they are actually ambient products and can therefore be stored in ambient back-shop areas.
“This new flavour offers the category something fresh and exciting,” said Michelle Frost, general manager for Mars Chocolate Drinks and Treats.
“We believe that the introduction of this innovative new flavour will further add to the category’s 21% growth.”
