PROCESSES AND PACKAGING LEADING TRADE FAIR EVERY INNOVATION HAS ITS STARTING POINT DÜSSELDORF, GERMANY 04 –10 MAY 2017 INTERPACK.COM 2016-10-24 interpack 2017_Neuseeland_Image_102 x 286 Satz_New Zealand Food Technology_4c_5300 For all information on Interpack and assistance with travel and accommodation planning: Robert Laing _ Messe Reps & Travel Ltd. Phone: +64 9 52192-00 Email: robert@messereps.co.nz www.messereps.co.nz www.foodtechnology.co.nz 9 FT197 CHEESE BIGGEST GROWTH OPPORTUNITY ON HORIZON 2016-10-24 interpack 2017_Neuseeland_Image_102 x 286 Satz_New Zealand Food Technology_4c_5300.indd 1 13.09.16 10:21 Reinventing cheese as a natural healthier snack is the biggest growth opportunity for dairy companies, as the product basks in a boost from scientific research showing it is a functional whole food with no negatives from either fat or sodium content. New research from New Nutrition Business’s latest report, 10 Key Trends in the Business of Dairy Nutrition, says sales numbers now show that connecting cheese to the snackification trend spells market success. The London-based research unit points to one of the most successful products launched in the US, Sargento Balanced Breaks, which achieved first year sales of $67 million for its snack products that pair cheese with fruit and nuts. And New Nutrition says consumers are willing to pay a premium price for a cheese snack, such as Sargento’s products that retail at a 150% premium to regular mass-market cheese. “For profitable growth, premium niches are the highest-opportunity, least-risk targets in dairy,” New Nutrition director Julian Mellentin says. “In almost every case, the most effective strategy for profitable dairy growth is to begin by focusing on the low-volume, high-value segments of the market.” Spire Brands is another company that found a simple solution for a growing consumer need. Its Moon Cheese snack – dried pieces of Gouda, Cheddar or Pepper Jack in a convenient pack – hit a $10-million run rate in early 2016, with prospects to double annual revenues to about $20 million in 2017. For years cheese has been out of favour because of its high fat content and faulty research linking it to cardiovascular disease. But new consumer awareness about the health benefits of cheese means there is scope for growth in countries where cheese consumption has been low, Mellentin says. If Americans were to reach the same per capita consumption of cheese as France, for example, the US market would double in size. Just when a critical mass of science revealed that dairy is a natural wholefood with a wealth of health benefits, it is faced with some new negatives (thanks to online bloggers), and these are helping fuel the dairy-free trend. “Non-dairy dairy is both an opportunity and a threat,” New Nutrition senior market analyst Joana Maricato says. “Dairy companies must take note of the trend and know how to respond to it – which in many cases means entering the market.” Danone has turned non-dairy into an opportunity by acquiring White- Wave, thus becoming both one of the world’s biggest dairy companies and the world’s biggest non-dairy company. Almond and coconut milk brands have been capitalising on people’s interest in digestive health (one of the most powerful trends in the food and beverage industry), positioning themselves as “easier to digest” than dairy milk, Maricato says. Addressing people’s worries about dairy and digestive wellness presents a wealth of opportunities for dairy, as the A2 cows’ milk brand has demonstrated in Australia, where it has taken a 12% share of the liquid milk market with its “easy to digest” marketing message. New Nutrition Business is a research and consultancy company with an expert focus on the business of food and health since 1995. It has offices in the United States, Europe and New Zealand, and affiliates in Japan and South Korea. It boasts 1700 corporate subscribers in 42 countries.
FT-Nov16
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