Added Value in Dairy Drinks, Milk and Cream - UK - May 2015
"The dairy drinks, milk and cream market faces challenges on several fronts at present, including for example, the maturity of the white milk segment, the ongoing grocery retailer milk price wars, concerns over sugar (flavoured milk) and the macro trend towards healthier products (cream)."
This report covers the following issues:
- Time to launch a 'fair pay' standard for British milk?
- Placing standard white milk under retailers' economy ranges could help them build category value
- Flavoured milks must combat health concerns to stem decline
The dairy drinks, milk and cream market faces challenges on several fronts at present, including for example, the maturity of the white milk segment, the ongoing grocery retailer milk price wars, concerns over sugar (flavoured milk) and the macro trend towards healthier products (cream).
Research for this report identifies ways in which operators can seek to build value back into the market, with fortified milks, chocolate confectionery-branded flavoured creams and more subtly flavoured milks proving popular with users.
Building value is vital, particularly given the structural changes in the market which could further commoditise the market. 2015 is an important year in terms of the structure of the market, with the ending of EU milk quotas and major consolidation in the form of Müller Wiseman’s proposed purchase of Dairy Crest’s Dairies division currently going through the regulatory process.
This report examines the UK retail market for milk and cream, including products sold via doorstep delivery as well as through retail outlets. Sales of milk within the catering and industrial sectors, as well as welfare milk supplies, unless otherwise stated, are excluded.
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