The Innovation Center for U.S. Dairy Presents. The Future of Dairy. Progress Report SEE THE FUTURE OF DAIRY AND SEIZE IT

Transcription

1 The Future of Dairy The Innovation Center for U.S. Dairy Presents Progress Report SEE THE FUTURE OF DAIRY AND SEIZE IT

2 Introduction Our industry-led work teams are dedicated to the further exploration of pre-competitive opportunities identified by the Future of Dairy research study. Each activation team is working against its own work plan and charter, and these groups have made great progress in recent months. As we work toward completion of final reports and deliverables for release in early 2014, we provide this progress report with the most recent insights and updates. We look forward to sharing with you the future progress and resources developed by the activation teams. Should you feel your planning, marketing or innovation team would benefit from a custom Future of Dairy briefing or if you re interested in joining one of our work teams, please contact Rebecca MacKay at rebecca.mackay@rosedmi.com. Thank you for your continued interest in the Future of Dairy. John Stephens & Rebecca MacKay

3 Continuously Delight Kids Making dairy products a tasty, fun treat for kids so they continue to consume dairy into adulthood Generate pre-competitive product, packaging and communication platform ideas based on concepts with the greatest consumer acceptance. Parents roles in food choices have changed, and decisions are made through negotiation and collaboration. Products must be ones kids ask for and Mom feels good about or that Mom chooses and kids like. Identified 11 priority demand moments (similar to a needstate but with additional defining factors) and prioritized five that aligned most closely with dairy to explore innovation opportunities. Conducted ideation session in the delightful snacks demand moment, including an initial consumer screen of potential product, packaging and communication platform thought starters. Package concepts created during the ideation sessions to be distributed to industry. What products can Mom, Dad and kids agree on? How can we leverage moms willingness to extend limitless permission with dairy by making products that are more yummy and fun for kids? Visit USDairy.com for more information on the Future of Dairy.

4 Powered by Dairy Making dairy the go-to food/beverage for people who want more physical or mental energy Identify potential emerging opportunities in the energy space that dairy can leverage with consumers. Dairy can leverage its inherent benefits in the growing energy category specifically in yogurt-based and low-fat milk products. Completed initial discovery into energy-focused categories to learn which consumer energy needs dairy can address and why consumers have these needs. Uncover how different consumer groups identify energy by age, gender, occasion, lifestyles and other ways to satisfy their physical and emotional energy needs. Address consumer perceptions of dairy versus competition and determine ways dairy can offer better solutions. What could a dairy-based beverage or food that enhances mental energy look like? Contact Rebecca MacKay at Rebecca.mackay@rosedmi.com for a custom Future of Dairy briefing.

5 Grazing on Dairy As people move from the three-meal-a-day norm to more snacking, make dairy the tasty, healthy and satisfying snack of choice Uncover underlying drivers and behaviors for snacking within key needstates, like nutrition and fun munching, to identify platforms for product development and communications. Consumers choose their nutritious snacks for satiation but still want taste, convenience and variety. Unlike yogurt, cheese and dairy-enhanced beverages are not always in this healthy consideration set, according to consumers. Established an understanding of what consumers of healthy snacks seek for morning energy and naturally nutritious needstates and how dairy can be positioned against those drivers. Evaluate possible innovation tour in 2014 with focus group findings to discover potential product concepts/platforms. Consumers seek more protein in their diets but are confused about sources and serving recommendations. Find ways to educate consumers on dairy s protein content in products besides yogurt, like cheese and dairy beverages. Consider pairing dairy snacks with other popular snack items or incorporating a broader flavor base such as sweet morning snacks and savory or salty afternoon snacks. Visit USDairy.com for more information on the Future of Dairy.

6 Fit for Life With Dairy Making dairy a go-to choice for a healthier and more active life now and in the future Explore how existing or new food/beverage products can provide a combination of benefits to the overweight and aging populations who are managing chronic conditions and weight while seeking to live longer, more active lives. Boomers are concerned with digestive health, weight management and energy needs that can be addressed with existing and innovative dairy offerings. Younger generations also are looking to stay fit and healthy, and ward off disease. Dairy-based foods and beverages with the right products and messaging can be a vehicle to achieve their goals. Completed focus group research to prioritize consumer nutrient needs that dairy can address. Findings include: Protein and fiber were most-sought-after nutrients. Yogurt and high-fiber foods were perceived to have digestive benefits. Cheese, milk and yogurt are viewed as satiating and satisfying parts of a healthy diet, yet concern for fat content and calories are trade-offs. Conduct quantitative research to assess the relative size of the benefits consumers seek. Develop platforms for ideation based on findings related to day parts, benefits and current behaviors. Are trade-offs necessary when eating healthy? What fusions of benefits can dairy products provide?

7 Dairy Beverage Reinvented Reinventing and repositioning fluid milk or dairy-based beverages to meet emerging needs Focus on emerging trends and the needs of consumer groups to uncover beverage opportunities and deliver pre-competitive, consumer-tested concepts for activation in the marketplace. Fluid milk and milk-based beverages can leverage emerging consumer trends and needstates to facilitate consumption growth. Performed concept screening to identify compelling beverage ideas with the potential to grow consumption. Packaging for today and Trading up to premium concepts were perceived as strongest. Fruit-focused and healthy smoothies received above-average feedback in sales potential. Market/targeting opportunities exist within demographic segments. Identify target for new product ideas by understanding trends, needs and occasions for millennials, acculturated Hispanics and baby boomers. Understand sales and purchasing dynamics of beverage segments that offer opportunity for expanded dairy usage. Identify white spaces to develop compelling dairy concepts. Stretch thinking from operating in the milk category to competing in the beverage business. Which subcategories (e.g., RTD meal substitutes, smoothies, energy and relaxation, etc.) offer the best opportunities to pair dairy ingredients with another beverage?