It’s been 26 years since the California Milk Processor board first launched its legendary “Got Milk?” campaign. Even with the passing of time, the slogan (picked up the Milk Processor Education Program) still speaks to milk’s role as an at-home, every day staple.

For that matter, today’s pandemic-stressed consumers have turned to all dairy products to find comfort, convenience and even a health boost. Here’s a look at how processors have responded to these trends and others across cultured products, milk, cheese and ice cream.

Culture Club

The cultured dairy segment has been tossing multiple balls in the air in an effort to meet numerous (and sometimes seemingly conflicting) consumer trends. This balancing act has been delivering mixed results for the categories within the segment.

According to data from Chicago-based market research firm IRI, dollar sales within the yogurt category — the largest cultured dairy category, by far — increased 2.5% to $7,343.1 million during the 52 weeks ending Sept. 6, 2020. However, unit sales fell 3.2% to 4,002.0 million during the same timeframe. The cottage cheese category performed similarly. Although dollar sales increased 3.4% to $1,080.7 million, unit sales took a 0.4% dive to 426.5 million.

However, the other cultured dairy categories fared much better. Dollar sales within the sour cream category shot up 11.8% to $1,398.7 million; unit sales rose 8.8% to 681.4 million. In addition, the cream cheese category saw a 14.9% jump in dollar sales (to $2,021.0 million) and a 9.5% increase in unit sales (to 741.5 million).

The good news for the latter categories could be attributed, at least in part, to consumers preparing more food at home during the coronavirus pandemic.

“Without commutes, morning routines slow down, and more consumers are able to take a few minutes to enjoy a bagel and cream cheese,” says Erica Watkins, brand manager for the Philadelphia cream cheese brand of Pittsburgh- and Chicago-based Kraft Heinz Co. “Cheesecake is a delicious dessert that is simple to make, and many consumers have turned to it and baking, more generally, as an outlet to decompress. In fact, cheesecake was a top 10 most-Googled recipe in April.”

The yogurt category, in particular, has found itself with an abundance of props to maneuver. One of those is the trend toward both better-for-you products and products with added health benefits.

“This is not a new thing but it has been sped up with COVID,” says Niel Sandfort, chief innovation officer for Norwich, N.Y.-based Chobani LLC. “Sixty-five percent of consumers are seeking functional benefits from their food and drinks.”

High-protein formulations certainly are part of that push.

Chobani responded to this trend by launching its Chobani Complete platform this summer, he points out. The brand covers a line of high-protein, easy-to-digest lactose-free yogurt products that contains no added sugar. The products come in three different formats: 5.3oz cups in Blueberry, Key Lime, Vanilla, Strawberry, Mixed Berry and Peach flavors; 10oz shakes in Banana Cream, Mixed Berry Vanilla, Strawberry Cream and Vanilla flavors; and 24oz tubs featuring Vanilla flavor.

Minneapolis-headquartered General Mills Inc. also aimed for high protein and low sugar with the introduction of its new :ratio keto-friendly dairy snacks. Made with carefully selected ingredients, the yogurt snacks contain 2g of net carbs and 1g of sugar per 5.3oz serving. They come in five “fruit-forward” flavors: Strawberry, Coconut, Vanilla, Mango and Black Cherry.

“In 2019, ‘keto’ was a popular search term, and 10% of Americans will try [the ketogenic diet] in the next six months,” explains Tsubasa Tanaka, director of marketing in General Mills Dairy Operating Unit, citing data from the NPD Group/Health Aspirations & Behavioral Tracking Service. “There is a demand for low-carb, keto-friendly products.”

For its part, Danimals, a brand of White Plains, N.Y.- and Broomfield, Colo.-based Danone North America, recently launched Super Danimals yogurt. The low-fat yogurt contains probiotics and vitamins C and D to help support children’s immune systems, the brand says. Packaged in 4oz cartons retailing in a six-pack format, the yogurt comes in Cherry Vanilla, Blueberry and Strawberry flavors.

But it was in late 2018 that Danone North America disrupted the better-for-you side of yogurt with the introduction of its low-sugar Two Good product line, which is made via a novel slow-straining process.

“The brand was developed to reduce the sugar level to a record-breaking 2g and only 80 calories,” says Pedro Silveira, president of U.S. Yogurt for Danone North America, “while still delivering 12g of protein per 5.3oz without compromising its taste.”

Since that debut, other brands have been innovating in the name of less sugar — another key trend.

Siggi’s, New York, rolled out its first-ever kids’ yogurt pouches in January. The company says the products, sold in packs containing four 3.5oz pouches, contain 50% less sugar and 30% fewer ingredients than leading kids’ yogurts. The 2% milkfat yogurts come in kid-friendly flavors that include Strawberry & Banana and Blueberry.

On the drinkable side, Irvine, Calif.-based Good Culture launched organic probiotic smoothies containing no added sugar. Made from yogurt’s kefir cousin, the smoothies feature 12 strains of live and active cultures, including the probiotic powerhouse BB-12. The company says the smoothies are sold in 7oz bottles and come in three flavors: Pineapple, Vanilla and Wildberry.

And outside the yogurt category, Good Culture also cut the sugar with the recent introduction of its Good Culture 3G Sugar single-serve, fruit-on-the-bottom cottage cheese.

“Each cup contains only 3g of total sugar, all coming from naturally occurring milk sugar, and zero added sugar,” explains Jesse Merrill, cofounder and CEO of the company. “Our 3G line is naturally sweetened with stevia and is loaded with 15g of protein. The new range is Keto Certified and supports the growing shift to lower-sugar, higher-protein products.”

Another trend some yogurt and other cultured product brands are embracing is that toward full-fat formulation.

Last year saw Nancy’s Probiotic Foods, Eugene, Ore., launch a line of single-serve organic whole-milk yogurt under the Nancy’s brand. Non-GMO Project Verified and made without pectin or gelatin, the products also boast more than 30 billion live probiotics per serving. They come in four flavors: Plain, Strawberry Vanilla, Mixed Berry and Peach.

And General Mills recently added two limited-edition flavors to its Oui by Yoplait whole-milk-based brand of French-style yogurt. Fall seasonal offerings included a brand-new Apple Pie variety and Pumpkin Caramel, which returned to shelves for the second year.

Milking It

After seeing declines year after year, the milk category (at least at retail) now seems to be pulling rabbits out of a hat. Dollar sales in the overall category rose 7.8% to $16,330.1 million during the 52 weeks ending Sept. 6, 2020, according to data from Chicago-based market research firm IRI. Unit sales increased 1.5% to 5,574.7 million.

Meanwhile, the refrigerated whole-milk subcategory wielded some magic dust to outperform the larger category. Dollar sales in the segment jumped 10.2% to $5,358.0 million, while unit sales climbed 4.0% to 1,772.2 million. Even the long-suffering skim/low-fat milk subcategory had some tricks up its sleeve. Dollar sales in the segment rose 5.1% to $7,292.2 million. But unit sales took a 1.7% dive to $2,507.2 million.

“Early in the year, when the country began to shut down in response to the pandemic, we saw consumers flock to the stores and stock up on nutritious foods like milk and dairy,” notes Monica Massey, executive vice president and chief of staff of Dairy Farmers of America (DFA), Kansas City, Kan. “And while foodservice and school milk have taken a hit this year, with more families preparing meals at home, we saw increased sales of milk at grocery stores early on. And now retail milk sales remain fairly steady.”

For its part, the Washington, D.C.-based Milk Processor Education Program (MilkPEP) has seen some shifts in the types of milk consumers are choosing amid the pandemic, says Yin Woon Rani, MilkPEP’s CEO.

“Consumers are reaching for more and different types of milk,” she notes, citing significant dollar sale increases for whole milk, organic milk and valued-added milk, in particular.

Speaking of value-added milk, it’s the kind of innovation that is also bringing consumers back to the milk category. Consumers are seeking out foods and beverages that not only have a great taste, but also deliver meaningful, relevant benefits, says Domenic Borrelli, president of premium dairy and plant-based foods and beverages for Danone North America, headquartered in Broomfield, Colo., and White Plains, N.Y.

“At Danone North America, we are committed to growth with a focus on premium value-added dairy milk offerings,” he says. “For example, we recently introduced Horizon Organic Growing Years, a milk catered specifically to children 1- to 5-years old.”

The milk was developed in partnership with pediatricians, Borrelli explains. Each 8oz serving contains not only 50mg of DHA omega-3 to help support brain health, but also probiotics and choline, which helps transport DHA in the body.

Massey agrees there is high consumer interest in milk with a little something extra.

“We’re seeing continued interest in functional foods or those that offer additional nutritional or performance benefits such as probiotics or added protein,” she points out. “As an example, this fall our Kemps brand is pilot-testing a new product, Siips, a high-protein flavored milk in a can with a lowered sugar content, which is targeted at tweens and teens. We think this innovation, both packaging and product formulation, is a promising area for fluid milk growth.”

Seattle-based Darigold Inc. was aiming for a higher protein content, too, when it launched the Darigold FIT line last year. The line’s offerings have 75% more protein and 40% less sugar than “regular” whole milk and were introduced in response to consumer demand for better-for-you products, says Duane Naluai, president of Darigold consumer products.

Phoenix-based Shamrock Farms, meanwhile, recently launched Shamrock Farms Rockin’ Protein Plus. The ready-to-drink milk-based beverage offers the advantages of anti-inflammation and antioxidants from real fruit juice and natural protein from milk, the company says. It comes in two flavors: Cherry Crème and Blueberry Pomegranate.

And DFA brought yet another value-added product to market recently with the launch of its Live Real Farms milk blends. The products combine cow’s milk with plant-based ingredients such as almond and oat.

On-trend flavors are adding excitement to the milk category, too. Moreover, when it comes to flavored milk formulation, there’s increasing consumer demand for whole-milk varieties, Rebecca Leinenbach, vice president of marketing and communications for Edwardsville, Ill.-based Prairie Farms Dairy Inc., says.

“In fact, within Prairie Farms, whole chocolate milk now holds the top spot in sales within the category,” she points out. “This prompted us to expand our premium chocolate milk size lineup to include a UHT half gallon. Because of the longer shelf life, the chocolate UHT half-gallon milk has extended our distribution reach to the West Coast.”

Like many other milk producers, Prairie Farms has also seen success with limited-edition, seasonal flavored milk offerings. For example, the cooperative introduced Easter Egg Nog, Orange Crème, Strawberry Crème and Chocolate Marshmallow as its spring 2020 milk flavors — and brought back Chocolate Custard, Leinenbach says.

For its part, Dallas-based Borden Dairy released three limited-edition State Fair of Texas-inspired milk flavors, including Cotton Candy, Caramel Popcorn and last year's blue ribbon winner—Banana Taffy—this summer. The products retail in 16oz plastic bottles.

When it comes to flavors that resonate with today’s consumers, processors might want to avoid some of the more unique flavors trending in other beverage categories, say Laura McBride, director of innovation for Organic Valley, and Meenakshi Trehan, vice president of brand marketing and innovation for the La Farge, Wis.-based cooperative.

“Consumers now more than ever are looking for familiar, nostalgic flavors they grew up with,” they say.

Say Cheese

Americans’ love affair with cheese is defying gravity. According to Chicago-based market research firm IRI, during the 52 weeks ending Sept. 6, 2020, natural cheese retail sales were swinging high through the air. Dollar sales jumped 15.8% to $15,291.0 million, while unit sales catapulted 9.0% to 4,356.4 million. Even the once-struggling processed cheese category was performing handsprings. It saw a 13.5% gain in retail dollar sales (to $3,175.1 million) and a 6.8% increase in unit sales (to 776.4 million).

According to Michael Pellegrino, president and chief growth officer of Plymouth, Wis.-based Sargento Foods, the challenges of 2020 required the industry to come together to address both the growing demand at retail and the supply chain issues companies faced.

“During the peak of pandemic shopping in March and April, consumers rushed to grocery stores to stockpile cheese for their coming quarantines. In several segments, the industry saw retail sales surge 30% to 70% percent from 2019,” he adds. “While this extreme spike only lasted a few weeks, several segments are still experiencing exceptionally high demand (+15-25%) that will likely stay until the foodservice industry recovers from consumers limiting their away-from-home meals.”

Jeff Jirik, vice president of quality and product development for Prairie Farms Dairy’s Cheese Division, Edwardsville, Ill., agrees that demand is “volatile and evolving.” And because most cheese processors’ main objective was to meet this demand, 2020 saw significantly fewer product launches.

“Overall, innovation this past year was slowed considerably by the response to COVID-19,” Jirik says.

One of the primary drivers for all that cheese purchasing is that more consumers are cooking at home, says Jirik. This has led to an increase in sales of “basic” cheeses and those that are convenient for meal prep/cleanup.

“Innovative variety packs of natural cheese will continue to evolve as a convenient item for consumers to use at home in meal preparation,” he predicts.

According to Pellegrino, the pandemic “put more focus on in-home cooking needs.” And consumers specifically are looking for cheese options that enhance their favorite home-cooked meals. Sargento’s Reserve Series of sliced and shredded natural cheeses fits the bill of gourmet, convenient offerings that can easily be used at home. The line’s shredded cheeses were introduced in 2019, and the slices were added in 2020. The slices come in fresh Asiago, aged Gouda and aged white cheddar varieties; the shreds are available in aged Italian blend, six-month aged Gouda, 14-month aged Parmesan and 18-month aged cheddar.

Many consumers have turned cooking at home into a social occasion. According to Shannon Maher, vice president of marketing at Bel Brands USA, Chicago, 2019 was the year of “on-the-go snacking,” and 2020 has become the year of “social snacking.”

“We have seen an increased demand for homemade ingredients versus ready-to-eat [products], resulting in positive growth for dairy and [for] some of our entertaining and local brands like Boursin, Kaukauna, Merkts, Price*s and Owl’s Nest,” she adds.

This year, Bel Brands added two products under its brands that are ideal for entertaining. Its Kaukauna Rosé White Cheddar cheese ball is a 10oz offering made with quality aged white cheddar blended with a refreshing semi-sparkling rosé wine. Each ball is covered in a crunchy almond coating for a delightful combination of unique flavors and texture, Bel Brands says.

The company also debuted Boursin Fig & Balsamic, a limited-edition holiday flavor. The offering combines creamy, crumbly cheese with the rich, complex sweetness of balsamic and notes of fig. According to Bel Brands, the cheese is perfect with crackers, charcuterie and accoutrements or can be added to “show-stopping” appetizers for a refined finish.

Jinny Lam, director, cheese for Tillamook County Creamery Association, Tillamook, Ore., says in-home entertaining/consumption is a potential growth area for the cheese category. She thinks that companies should look into developing products that make “entertaining/snacking at home easier,” ones that “enable more vegetable consumption using cheese as a flavor and texture boost,” and offerings that recreate cheese-forward restaurant dishes at home.

To meet this demand, Tillamook is launching cracker-cut cheese early this year. The line will include Tillamook’s sharp cheddar, extra sharp cheddar and pepper jack cheeses “pre-cut in a peel-and-reseal package for snacking in or out of the home, or as a simple way to entertain,” Lam explains.

Beyond new formats, consumers also are interested in experimenting with new varieties and flavors that pack a punch.

According to Maher, one of the most consistent recent trends in the cheese category is “flavor innovations for cheese that adapt to expanding and global-inspired palates.”

Lam notes that consumers are looking for variety and “bolder flavors,” including spicy, smoky and Hispanic options. Tillamook recently launched the boldly flavored Maker’s Reserve 2010 Extra Sharp White Cheddar, which was “produced and set aside in 2010 and released in 2020.”

“It’s crumbly and complex with incredible bold cheddar notes, yet still buttery and velvety smooth,” she explains.

Willows, Calif.-based Rumiano Cheese Co., meanwhile, added three new adventurous flavors to its Redwood Coast line: Wild Arabian Nights (Monterey Jack with Za’atar seasoning), Borderline Blaze (Smoked Jalapeño Cheddar) and Tuscan Temptress (Mozzarella with Basil and Sun-Dried Tomato).

And Schuman jumped on the global flavors trend by launching a new brand: Margot Fromages. The brand consists of Gruyere cheese that is produced by the “third-largest and last family-owned purveyors of Gruyere,” Cox says. The distinctively nutty and fruity cheese is aged from five to 12 months, beginning creamy and mild at five months, and then developing into a more complex, salty and earthy flavor as it ages.

Cold Comfort

During a 52-week period ending Sept. 6, 2020, dollar sales in the ice cream subcategory of the larger ice cream/sherbet category were up 13.4% (to $6,841.8 million), while unit sales increased by 8.4% (to 1,703.6 million), according to data from Chicago-based market research firm IRI. The frozen novelties subcategory also has been heating up, with dollar sales soaring 16.0% (to $5,784.1 million) and unit sales jumping 9.1% (to 1,650.6 million).

The coronavirus shutdowns certainly helped stoke the flames, with more consumers reaching for the familiar comfort of ice cream while at home. But will this growth streak last as the United States continues into a recession? According to global market research firm Mintel, yes — at least in the near future.

“Looking back at past recessions indicates that in these types of circumstances people tend to nest (indulge at home) and reach for accessible indulgences (like ice cream), prolonging a residual yet tempered growth for the category,” the company notes in its “Ice Cream and Frozen Novelties: Impact of COVID-19 US April 2020” report.

“Fifty-one percent of consumers associate ice cream with comfort,” the company adds. “Furthermore, 45% report that ice cream is their favorite indulgence, pointing to a well-positioned opportunity for brands in the category to forge bonds with consumers.”

According to George Denman, vice president of Cincinnati-based Graeter’s Ice Cream, indulgence-minded brands have seen more of a retail sales uptick than brands with healthfulness in mind such as Halo Top.

“Another big winner was the turnaround in large-size brands like Breyers, Edy’s, Friendly’s and Turkey Hill,” he adds. “With kids at home and not in school, mom stocked up on these 48oz containers, which prior to the pandemic were anemic [in sales] at best.”

Lindsey Meuser, assistant category manager, ice cream for Tillamook County Creamery Association, Tillamook, Ore., predicts that premiumization will continue in the category.

“Coronavirus has led to significantly increased ice cream consumption, and we’re finding that consumers are choosing to splurge on premium offerings as they seek out more opportunities to treat themselves with an extra-special dessert during such uncertain and emotionally exhausting times,” she adds.

ChurnBaby Ice Cream, a newly launched brand of Richmond, Utah-based Casper’s Ice Cream Inc., promises to deliver a hip, boutique ice cream experience from the comfort of home. Made with ultra-premium ingredients, ChurnBaby’s products bring an elevated twist on classic ice cream flavors, the company notes. ChurnBaby Cookie Cups come topped with a full cookie and a spoon on the inside of the lid for convenient snacking, Casper’s says. The newly launched treats come in four flavors: Choco Chip Cookie Dough, Peanut Butta Brownie Luvva, Cool Mint Chocolate Chip and Choco Chip Vanilla Fudge Brownie. Also available are ChurnBaby ice cream sandwiches. The offerings come in Caramel Cashew and Caramel Cookies ‘n’ Cream flavors.

The indulgence trend already was well established before the COVID-19 pandemic. Some of the overarching trends Denman says he’s seen in the category include texture (with more decadent inclusions), the deconstruction of desserts into ice cream flavors and alcohol/spirits-based varieties.

“We are also seeing a number of birthday cake-flavored ice creams,” he says. “Graeter’s launched their version of an indulgent birthday cake to celebrate its 150th anniversary in July. It quickly became the No. 2 Graeter’s flavor at both Kroger and Giant Eagle in July 2020.”

The Cheesecake Factory, Calabasas Hills, Calif., expanded its The Cheesecake Factory At Home line by introducing a collection of premium cheesecake ice creams that feature a signature cream cheese blend and sour cream. The collection, which is a collaboration with Le Mars, Iowa-based Wells Enterprises Inc., comes in seven flavors: Birthday Cake, Chocolate, Cookies & Cream, Key Lime, Original, Salted Caramel and Strawberry. The line is available nationwide and has a suggested retail price of $4.99 for a 14oz carton, the companies say.

On the flip side, many consumers are still looking for “better-for-you” ice cream flavors that can offer indulgence with a bit less of the guilt. However, the meaning of “better-for-you” is changing, notes Mintel.

“Consumers are less motivated by claims like low-calorie, low-fat and low-sugar,” the company reports. “Instead, consumers are prioritizing softer, holistic benefits like simple ingredients and functional benefits.”

To provide more transparency about its products, Ben & Jerry’s launched gluten-free ice cream certification in 10 of its SKUs in October 2020. Officials note that the flavors already were gluten-free—but the company wanted to ensure consumers had an on-pack certification to reference.

Los Angeles-based Real Good Foods Co. built on this trend by launching a better-for-you super-premium ice cream made from simple ingredients. Real Good Foods ice cream has a fraction of the carbs of traditional ice cream and is sweetened with allulose, a naturally occurring sugar, the company says.

Another major trend targets the ketogenic diet. Halo Top, a brand of Le Mars, Iowa-based Wells Enterprises Inc., says it introduced the Keto Series — seven flavors of ice cream designed for people following the diet.

The Keto Series incorporates creamy, ultra-filtered skim milk, which provides fewer calories than regular milk and is a good source of protein. With net carbs ranging from 5g to 10g and calories from 410 to 630 per pint, the line is lower in calories than regular ice cream without sacrificing flavor, says Halo Top. Flavors include Peanut Butter Chocolate, Caramel Butter Pecan, Chocolate Cheesecake, Jelly Donut, Berry Swirl, Banana Cream Pie and White Chocolaty Macadamia Nut. The line is available in 16oz pints and has a suggested retail price of $5.99. PF