Corporate Profiles - 2020 - 41

per capita consumption across products consistently increasing each year, with
2019 up 6% over the past five years, 10% over the past 15 years and 16%
over the past 30 years.
"The product mix in most demand by consumers is changing," Mr. Dykes
said. "We eat more dairy than we drink these days, and dairy on the whole
continues to grow."
That "eat" trend continues, but drinking milk and cooking more with all
types of dairy had all dairy foods categories experiencing double-digit sales
increases starting in mid-March, as compared to the same period in 2019.
The dairy industry is committed to keeping up the momentum with education
and innovation.
"To continue to still see everyday demand push sales above year-ago levels
for dairy is quite an accomplishment," said Jeremy Johnson, vice president of
education for the International Dairy Deli Bakery Association, Madison, Wis.,
in early September 2020, approximately six months after US stay-at-home
orders were executed.
Since March 15, the IDDBA has been tracking retail sales with Information
Resources, Inc., Chicago, and 210 Analytics LLC, San Antonio.
"I think it is fair to say that we are starting to look at the new normal," Mr.
Johnson said. "Retail sales appear to be holding at about 10% above 2019
levels with great consistency."
Abrielle Backhaus, research coordinator with the IDDBA, added, "Dairy
sales are settling into a very nice sales pattern. Cheese has been a pandemic powerhouse. Creams, creamers and whipped toppings continue to see
double-digit gains with many coffee breaks having moved to at-home. With
people continuing to work from home, this incremental occasion remains an
opportunity for dairy."
The virtual school experience, which has breakfast, lunch and snacks
being consumed in the home, likely will also keep retail dairy sales strong,
in particular milk, cheese and yogurt, and even ice cream.

DAIRY PRODUCTS

2020 week ended
Dairy
Natural cheese
Milk
Yogurt
Eggs
Cream/creamers
Butter
Processed cheese
Cream cheese
Sour cream
Margarine/spreads
Whipped toppings
Cottage cheese

dollar sales increase over comparable week in 2019
March 1
+2%
+4%
+3%
-0%
-6%
+3%
+6%
+3%
+4%
-2%
-3%
+3%
-4%

Source: Information Resources, Inc.

Corporate Profiles

The dairy industry is embracing this opportunity to connect with younger
consumers and educate them on the nutritional benefits of dairy foods.
In fact, the emergence of milk as a surprising social media superstar of
the stay-at-home months inspired MilkPEP - the group that represents
America's milk companies - to bring the iconic "got milk?" tagline back
into the spotlight.
"I've been so inspired by how people have creatively embraced milk this
year," said Yin Woon Rani, CEO of MilkPEP. "From whipping Dalgona coffee to
running a mile with a glass of milk in-hand, today's TikTok-ers are finding more
ways to connect with milk."
Indeed, when Americans were faced with tough times, they bought more
milk, and not just during the initial stock-up phases of the pandemic. Milk is an
"essential" for home meals. Parents buy milk because they trust it for its nutrition, versatility and taste. In fact, 72% of moms said that milk was their No. 1
must-have as the stay-at-home orders hit, above staples like bread, eggs and
vegetables, according to MilkPEP/Radius Illumination research among 201
moms between March 17 and April 19.
To better understand the new norm of dairy retail sales and consumer
use, Midwest Dairy, St. Paul, Minn., included a live consumer focus group
during its third annual Dairy Experience Forum on July 15. While panelists
shared perceptions surrounding health benefits, animal care and sustainability, they also shared enthusiasm for dairy and habits that showcased
opportunities for the dairy industry. Among these were increased yogurt
consumption, exploring new cheeses and cooking with dairy foods, such as
buttermilk and sour cream.
Further, based on the results of a survey commissioned by Midwest Dairy,
consumers indicated they plan to increase their yogurt usage in the post-pandemic world. This is likely due to the healthful halo of yogurt, as the probiotic
cultures they contain are associated with boosting immunity.
"Dairy drivers are the same as before - taste, health, comfort and

March 3-29
+35.0%
+45.7%
+29.6%
+15.0%
+44.3%
+28.1%
+69.2%
+59.0%
+41.6%
+36.1%
+54.8%
+25.7%
+17.7%

April 5-26
+29.2%
+37.8%
+21.6%
+0.8%
+49.3%
+26.0%
+53.6%
+38.3%
+33.9%
+38.0%
+22.9%
+35.7%
+10.7%

May 3-31
+23.7%
+32.4%
+14.9%
+3.3%
+37.6%
+22.4%
+46.8%
+22.7%
+32.3%
+29.8%
+27.6%
+38.3%
+9.8%

June 7-28
+15.2%
+21.6%
+6.7%
+3.6%
+26.7%
+15.7%
+20.6%
+14.8%
+20.0%
+14.3%
+11.4%
+27.5%
+7.4%

July 5-26
+14.2%
+20.5%
+7.5%
+5.7%
+20.9%
+16.6%
+19.2%
+14.9%
+20.1%
+14.4%
+8.8%
+24.8%
+7.0%

Aug. 23
+14.3%
+19.1%
+10.9%
+3.3%
+17.2%
+14.6%
+5.9%
+16.7%
+15.6%
+11.5%
+11.4%
+24.3%
+5.9%

Aug. 30
+9.5%
+12.7%
+8.2%
+3.5%
+8.5%
+10.0%
+4.3%
+2.1%
+7.4%
+4.6%
+2.9%
+15.8%
+5.8%

Sales week
ended
Aug. 30
$1.48 billion
$293 million
$286 million
$143 million
$110 million
$83 million
$60 million
$57 million
$36 million
$25 million
$24 million
$23 million
$21 million

Total US, MULO, one week percent growth versus year ago.

Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Pet Food Processing

October 2020 / 41



Corporate Profiles - 2020

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