Milling & Baking News Corporate Profiles - November 2013 - (Page 47)

products continue to show growth in consumption domestically, including cheese and ice cream. Although Mexico, Japan and South Korea remain the three largest export markets for U.S. cheese, demand from the Mideast, Southeast Asia, China and South America has been growing, with the latter perhaps the most surprising in recent years. U.S. cheese exports to South America have increased nine consecutive years through 2012 and were on pace to break the 10,000-tonne mark in 2013 with exports up 27% from 2012 in the January-July period, according to the U.S. Dairy Export Council. "The appreciation of South American currencies against the U.S. dollar in recent years has helped build sales, in effect reducing the price of dairy imports," Angelique Hollister, vicepresident, cheese and consumer products for the U.S.D.E.C., said in a Perspecitve quoting the Oct. 12 edition of Cheese Market News. "But the main factor driving demand is similar to that driving dairy demand in other developing nations: rising incomes creating a larger middle class and causing a shift to high protein diets." "A major reason for U.S. success lies in our free trade agreements with Chile, Colombia and Peru," Ms. Hollister said in the Perspective. "South America is very price sensitive, and the F.T.A.s gave the United States a pricing advantage over competitive suppliers." Domestically, retail dollar sales in the ice cream/sherbet category increased 1.4% from a year earlier during the 52 weeks ended Sept. 8, according to data from Information Resources, Inc. (I.R.I). Ice cream sales totaled $5.5 billion during the period, up 0.5% from a year earlier. The gains were the result of increases in volume as the average price per unit declined Corporate Profiles slightly, according to the I.R.I. data. Unit sales of ice cream during the period totaled 1,517 million, up 1.7% from the prior 52-week period, while the average price per unit of $3.66 was down 4c from a year earlier. Private label ice cream was the leading seller with 23% of the unit sales total, which was down about 4% from 'This (yogurt) is a food that saves time and money and has a halo of health.' - Harry Balzer, chief analyst, NPD Group the prior 52-week period, the I.R.I. data showed. Nestle's Dreyer's Ice Cream Co. firmed its hold on second place with an 18% share of unit sales, up nearly 7% from a year earlier. Private label dollar sales of $1.13 billion, down about 5% from the prior 52 weeks, narrowly edged out Nestle's Dryers with sales of $1.08 billion, up 4%. Private label had a 20% share of dollar sales compared with 19% for Nestle's Dreyer's, Good Humor/Breyers with 12%. Greek yogurt continued to be a big "win" for dairy. "In 2010, less than 9% of American households bought Greek yogurt, but by 2012 that number had risen to 47%," according to consumer and market research from The Dannon Co. In its annual report, Dannon said, "Greek yogurt could generate the long-awaited momentum needed to boost Americans' consumption of fresh dairy products." Yogurt product introductions came in 2013. Yoplait targeted tweens by introducing Pro-Force Greek yogurt. Chobani, Inc. rolled out Chobani Champions Greek yogurt in squeezable tubes for children. The U.S. Department of Agriculture said it will offer Greek yogurt as a healthy protein source in New York school meal programs under a pilot program that may expand nationally if successful. One in three Americans eat yogurt, said the NPD Group, Rosemont, Ill. Harry Balzer, chief analyst for the NPD Group, said yogurt may be used as a main dish, a side dish and as a snack. "This is a food that saves time and money and has a halo of health," he said. Also a positive in 2013 has been declining feed costs for milk producers. Prices of key ingredients in dairy cattle Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry November 2013 / 47

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Milling & Baking News Corporate Profiles - November 2013