The U.S. Market for Flavored Dairy Beverages

Published: January 1, 2002 - 217 Pages

Table of Contents

  • Executive Summary
    • Scope And Methodology
      • Market Parameters
      • Report Methodology
    • The Products
      • Two Categories Of Flavored Dairy Beverages
      • Many Available Package Types And Sizes
      • Single-Serve Packages Drive Innovation
      • Historical Overview
      • Dairy Industry Is Highly Regulated
    • Size And Growth Of The Market
      • 2001 Sales Near $2.0 Billion
      • Sales Approach $3 Billion By 2006
        • Table U.S. Sales Of Flavored Dairy Beverages, 1997-2006
      • Market Share By Product Category
        • Table U.S. Sales Of Flavored Dairy Beverages By Product Category, 2001 (In Millions Of Dollars)
      • Projected Category Growth Uneven
        • Table Projected U.S. Sales Of Flavored Dairy Beverages By Category, 2001-2006 (In Millions Of Dollars)
      • Factors Affecting Market Growth For Ready-To-Drink Beverages
      • Few Opportunities To Grow Flavorings
    • The Marketers
      • Leading Marketers
      • Just a Marketer
      • Consolidation And Acquisition Frenzy
      • Market Driven By Packaging Innovation
      • Marketing By Season
      • Advertising Is Minimal Compared To Other Beverage Segments
    • Distribution And Retail
      • Channels Of Distribution
      • Supermarkets Claim Largest Retail Share
        • Table Share Of U.S. Flavored Dairy Beverage Retail Sales By Outlet, 2000
      • Milk Is Quite Profitable
      • Alternative Distribution Channels
      • C-Stores And Vending Are Emerging Opportunities For Dairy
      • Impulse Channels For Mixes Barely Exist
    • The Consumer
      • Convenience And Nutrition Are Key With Consumers
      • Use Of Flavored Dairy Beverages
        • Table Percent Of Consumers Who Use Flavored Dairy Beverages By Product Type And Brand, April 2000-March 2001 (U.S. Adults)
  • The Products
    • Scope Of The Report
      • Consumer Products Segment
      • Evolution Of Category
      • Chocolate Milk Enters The Market
      • Flavored Milk Offerings Expand
    • Product Breakouts
      • Two Primary Product Categories
      • Ready-To-Drink Beverages
      • Flavorings
      • Flavored Milks And Shakes
      • Not Enough Flavors For Consumers
        • Table Favorite Milk Flavors Other Than Chocolate
      • Premium Flavors And Formulations
      • Coffee And Milk Combo Craze
      • Milk As An Ingredient, Sometimes With Carbonation
      • Adding Some Culture
      • Dairy And Juice Creates a Splash
      • Organic Segment Small Yet Solid
      • Old Fashioned Flavorings
      • Upscale Coffee Mixes
      • The Trendy Chai
      • Blender Beverages
      • Shakes For Breakfast
    • Packaging Dynamics
      • Single-Serve Packages Drive Innovation
      • Packaging As Marketing Tool
      • Multi-Packs To Generate Larger Sales
      • Stirrings Remain Mostly Unchanged
    • Government Regulations
      • Federal Regulations
      • Understanding Price Supports
      • Understanding Federal Milk Marketing Orders
      • If Those Are Orders, Then What's a Compact
      • Labeling Nomenclature
      • Milk's Claims To Fame
      • Nutrition Facts
      • Expiration Dates
      • State Regulations
  • The Market
    • Market Size And Growth
      • 2001 Sales For Total Market Close To $2.0 Billion
        • Table U.S. Sales Of Flavored Dairy Beverages, 1997-2001
      • Sales Difficult To Quantify For Ready-To-Drink Products
      • Milk Flavorings Much Easier
      • Ready-To-Drink Beverages At $1.4 Billion
      • Milk Flavorings At $527 Million
        • Table U.S. Sales Of Flavored Dairy Beverages By Category: Ready-To-Drink Beverages Vs. Flavorings, 1997-2001
      • Flavored Milk Sales Increase 10.1% Annually
        • Table U.S. Sales Of Ready-To-Drink Flavored Dairy Beverages: Flavored Milk Vs. Other Flavored Dairy Beverages, 1997-2001
      • Coffee-Milk Drinks Experience Phenomenal Growth
        • Table U.S. Sales Of Coffee-Milk Drinks, 1997-2001 (In Millions Of Dollars)
      • Drinkable Yogurt Finds Success In Kids Market
        • Table U.S. Sales Of Cultured Dairy Beverages, 1997-2001 (In Millions Of Dollars)
      • Dairy-Based Shelf-Stable Drink Sales Are Difficult To Measure
        • Table U.S. Sales Of Dairy-Based Shelf-Stable Beverages, 1997-2001 (In Millions Of Dollars)
      • Traditional Milk Flavoring Sales Show Minimal Activity
        • Table U.S. Sales Of Flavorings, 1997-2001 (In Millions Of Dollars)
      • Cocoa Mixes And Milk Flavorings Increase Only 2.0% Annually
        • Table U.S. Sales Of Cocoa Mixes And Milk Flavorings, 1997-2001 (In Millions Of Dollars)
      • Coffee And Chai Mixes Liven Up Flavoring Category
        • Table U.S. Sales Of Other Flavorings/Drink Mixes, 1997-2001 (In Millions Of Dollars)
    • Market Composition
      • Flavored Milk Accounts For Most Of Market
      • Traditional Supermarkets The Primary Sales Venue
      • Chocolate Rules
      • Sales By Season Only For Warm Drinks
      • The South Loves All Flavored Milk While The Midwest Loves Chocolate
      • Westerners Flavor Their Milk The Least
      • Hot Cocoa Mix Is a Toss Up
        • Table Regional Distribution Indices For Consumption Of Flavored Dairy Beverage: By Product Type, April 2000-March 2001 (U.S. Adults)
    • Factors To Market Growth
      • Convenient And Flavorful
      • Consumers Coming Back For Calcium
      • Milk Helps Kids Maintain Healthy Body Fat
      • Maturing In a Different Way
      • Coffee-Milks As Starter Coffee Drinks
      • Extended Shelflife (Esl) Presents Distribution Opportunities
      • Changing Channels
      • Esl Also Breeds Innovation In Flavors
      • Shelf-Stable Flavored Milk On The Horizon
      • Vending Becomes Sophisticated Meal Servers
      • Multi-Packs For Growth
      • Cultured Beverages Finally Catch On
      • Premium Opportunities For Flavorings
      • Other Opportunities For Growth
    • Projected Market Growth
      • Sales To Approach $3 Billion By 2006
        • Table Projected U.S. Sales Of Flavored Dairy Beverages, 2001-2006
      • Continued Healthy Increases For Ready-To-Drink Beverages
      • Flavorings Show Little Growth
        • Table Projected U.S. Sales Of Flavored Dairy Beverages By Category: Ready-To-Drink Beverages Vs. Flavorings, 2001-2006
      • Flavored Milk Shows Strongest Consistent Growth
        • Table Projected U.S. Sales Of Ready-To-Drink Flavored Dairy Beverages: Flavored Milk Vs. Other Flavored Dairy Beverages, 2001-2006
      • Coffee-Milk Initially Grows With Jakada
        • Table Projected U.S. Sales Of Coffee-Milk Drinks, 2000-2006
      • Single-Serve Containers For Cultured Dairy Beverages
        • Table Projected Sales Of Cultured Dairy Beverages, 2001-2006
      • Dairy-Based Shelf-Stable Drinks, Small, Yet Important Segment
        • Table Projected U.S. Sales Of Dairy-Based Shelf-Stable Beverages, 2001-2006
      • Traditional Flavorings Not Going Anywhere
        • Table Projected U.S. Sales Of Flavorings, 2001-2006
      • Cocoa Mixes And Flavorings Show Almost No Growth
        • Table Projected U.S. Sales Of Cocoa Mixes And Milk Flavorings, 2001-2006
      • Other Flavorings Offer Some Hope
        • Table Projected U.S. Sales Of Other Flavorings/Drink Mixes, 2001-2006
  • The Marketers
    • Marketer Diversity
      • All Types Of Marketers
      • Refrigerated Business Is Rather Regional
      • Shelf-Stable Products Benefit Nationally
      • Playing Both Fields
      • Manufacture Or Co-Pack?
      • Dairy Or Beverage Company
      • Soft Drink Companies Want In
        • Table U.S. Flavored Dairy Beverages: Selected Marketers Of Ready-To-Drink Products By Brand And Product Type (20 Marketers)
        • Table U.S. Flavored Dairy Beverages: Selected Marketers Of Flavoring Products By Brand And Product Type (9 Marketers)
    • Consolidation Of Industry
      • The Big Get Bigger
      • When Number-One And Number-Two Dairies Merge
      • Buying Beverage Businesses To Grow Product Portfolio
      • Acquired Similar Brands Create Dilemma
      • Flavorings Stay Still
    • Competitive Overview
      • Hershey Takes On Nesquik
      • Milk Gets Looney
      • Mickey Mouse Milk?
      • Chugs Go National
      • Dean Foods Leads As Top Ready-To-Drink Marketer
        • Table U.S. Supermarket Sales Of Flavored Milk/Eggnog/Buttermilk: Top Three Marketer Sales And Shares, 2000
        • Table U.S. Supermarket Sales Of Flavored Milk/Eggnog/Buttermilk: Top Ten Brands Sales And Shares, 2000
      • Yoo-Hoo On First
      • Latte And Cappuccino Craze
      • Chai Tea Time
      • Cultured Beverages Catch On
        • Table U.S. Supermarket Sales Of Cultured Dairy Beverages: Top Five Brands Sales And Shares, 2000
      • Adding Carbonation
      • Specialty Milks
      • Flavoring Marketers Hold Onto Business
        • Table U.S. Supermarket Sales Of Milk Flavoring/Cocoa Mixes: Top Three Marketer Sales And Shares, 2000
        • Table U.S. Supermarket Sales Of Milk Flavoring: Top Three Brands Sales And Shares, 2000
        • Table U.S. Supermarket Sales Of Cocoa Mixes: Top Five Brands Sales And Shares, 2000
    • Competitive Profile: Austin, Nichols & Co., Inc. New York, New York
      • Company Overview
      • Pernod Ricard Adopts Yoo-Hoo
      • Updating An Image To Boost Sales
      • Cadbury Schweppes Is Potential New Home
    • Competitive Profile: Bravo! Foods International Corp. North Palm Beach, Florida
      • Company Overview
      • What's Up Doc?
      • Two Features To Business Model
      • It's a Looney Business
    • Competitive Profile: The Coca-Cola Co. Atlanta, Georgia
      • Company Overview
      • Reshaping Its Business
      • Project Mother
      • Coffee For Mom (And Dad)
    • Competitive Profile: Dairy Farmers Of America Kansas City, Missouri
      • Company Overview
      • Leading Milk Marketer
      • Manufacturing Product For Top Brands
      • The Borden Business
      • Goodbye To Suiza Venture
      • Hello To Yo-J
    • Competitive Profile: The Dannon Co., Inc. Tarrytown, New York
      • Company Overview
      • U.S. Operations
      • Dedicated To Research
      • Investing In Others
    • Competitive Profile: Dean Foods Co. Franklin Park, Illinois
      • Company Overview
      • Milk Chugs For Everyone
      • Investment In Soy Could Be a Problem
      • Getting To Number-One
        • Table Dean Foods-Owned U.S. Manufacturing Facilities, 2000
    • Competitive Profile: Hershey Foods Corp. Hershey, Pennsylvania
      • Company Overview
      • Battling Mars
      • Hershey, Pennsylvania-It's All About Chocolate
      • Hershey's Affection Towards Milk
    • Competitive Profile: Lifeway Foods, Inc. Morton Grove, Illinois
      • Company Overview
      • Kefir Culture Differences From Yogurt
      • Growing Here And Abroad
    • Competitive Profile: Nestle Usa Glendale, California
      • Company Overview
      • History Built On Dairy
      • The Beverage Division
      • Leader In Beverage Branding
      • New Name, Same Bunny
      • Disney Alliance
    • Competitive Profile: Parmalat Usa Wallington, New Jersey
      • Company Overview
      • Parmalat's U.S. Origins
      • Flavors For Preference
      • Broadening The Product Mix
    • Competitive Profile: Pepsi Co, Inc. Purchase, New York
      • Company Overview
      • Merging And Diverging Brands
      • Moving From Beverage To Food Company
      • Association With Milk Dates Back To Laverne
      • Global Outlook
    • Competitive Profile: Suiza Foods Corp. Dallas, Texas
      • Company Overview
        • Table Suiza Foods-Owned U.S. Manufacturing Facilities, 2000
      • Thinking Nationally, Acting Locally
      • Getting Bigger
    • Competitive Profile: Westfarm Foods Seattle, Washington
      • Company Overview
        • Table Source Of Milk Processed By Westfarm Foods (Number Of Farms): California, Oregon, Idaho, Washington
      • Full Line Of Dairy Products
        • Table Westfarm Food's Key Product Categories (Volume Manufactured During Fiscal Year Ending March 31, 2001)
      • Strategic Brand Partnerships
      • Investing In Technology To Be Competitive
      • Introducing Darigo
    • Marketing And New Products
      • Packaging Drives Innovation
      • Seasonal Products
      • Something For Everyone
        • Table U.S. Flavored Dairy Beverages: Select New Ready-To-Drink Product Introductions, 1999-2001: Part A
        • Table U.S. Flavored Dairy Beverages: Select New Ready-To-Drink Product Introductions, 1999-2001: Part B
        • Table U.S. Flavored Dairy Beverages: Select New Flavoring Product Introductions, 1999-2001
    • Advertising And Promotion
      • Flavored Dairy Beverages Are Out-Advertised
      • Promoting Dairy As Fun
      • Playing Tough
      • Playing Soccer
      • Generic Flavored Milk Campaign
      • Coffee Is Cool
      • Shaking Convenience
      • Samples Of Promotional Materials
  • Distribution And Retail
    • Distribution Overview
      • Retail Distribution Methods
      • Perishable Preferences
      • Direct Delivery Advantages
      • The Cost Of Face-To-Face Business
      • Cutting Costs With Carts
      • Advantages Of Warehouse Delivery
      • Refrigerated Warehousing
      • Acquisitions Result In Enhanced Distribution Efforts
      • Non-Perishable Distribution
      • Leaving The Warehouse
      • Technologies For Refrigerated Fleets
      • Computerizing Distribution For Dairies
      • Smaller Marketers Work Through Brokers
    • Retail Overview
      • Traditional Supermarkets Account For 73.1% Of Retail Sales
        • Table Share Of U.S. Flavored Dairy Beverage Retail Sales By Outlet, 2000
      • Receiving Product
      • Milk Crates Are The Enemy
      • Retailers Profit From Milk
      • Dairy Case Vs. Beverage Cooler
      • Competing With Soft Drinks
      • Secondary Merchandising Creates Incremental Growth
      • Merchandising For Mixes
      • Value-Added Pricing
        • Table U.S. Flavored Dairy Beverages: Suggested Retail Price Of Selected Ready-To-Drink Products
        • Table U.S. Flavored Dairy Beverages: Suggested Retail Price Of Selected Flavoring Products
      • Private Label Pricing
        • Table U.S. Flavored Dairy Beverages: Private Label Vs. Branded
        • Table U.S. Flavored Dairy Beverages: Private Label Vs. Branded
        • Table U.S. Flavored Dairy Beverages: Private Label Vs. Branded
        • Table U.S. Flavored Dairy Beverages: Private Label Vs. Branded
    • Alternative Distribution Channels
      • The Increasingly Popular Warehouse Club Store
      • Membership Benefits
      • Multi-Packs And Family-Size Products
        • Table U.S. Flavored Dairy Beverages: Suggested Club-Store Prices Of Selected Products
      • Milk Means Business For C-Stores
      • C-Stores Are For Impulse Beverages
      • Vending Improves Availability
      • Dairies Evaluate Vending Machines
      • Vending Machine Options
      • Impulse Channels For Mixes
  • The Consumer
    • Consumer Attitudes
      • Consumers Want Convenience
      • Consumers Turn Away From Soft Drinks
      • Milk Consumption Is Up
    • Consumer Use And Demographics
      • Simmons Consumer Survey
      • Simmons Data On Flavored Dairy Beverages
        • Table Percent Of Consumers Who Use Flavored Dairy Beverages By Product Type And Brand, April 2000-March 2001
      • Purchasers Of Chocolate And Other Flavored Milk
        • Table Demographic Characteristics Favoring Purchase Of Flavored Milk: Ready-To-Drink Chocolate Milk Vs. Other Flavored Milk April 2000-March 2001 (U.S. Adults)
      • Milk Makes Coffee Popular With Younger Consumers
        • Table Demographic Characteristics Favoring Purchase Of Coffee-Milk Products: Brewed Espresso/Cappuccino Vs. Coffee-Milk Mix April 2000-March 2001
      • Purchasers Of Milk Flavorings Tend To Be Homemakers
        • Table Demographic Characteristics Favoring Purchase Of Milk Flavorings April 2000-March 2001 (U.S. Adults)
        • Table Demographic Characteristics Favoring Purchase Of Milk Flavorings Powdered Vs. Syrup April 2000-March 2001
      • Differences By Brand
        • Table Demographic Characteristics Favoring Purchase Of Milk Flavorings By Brand April 2000-March 2001
      • Hot Cocoa Mix Demographics As Boring As Category
        • Table Demographic Characteristics Favoring Purchase Of Hot Cocoa Mix April 2000-March 2001
        • Table Demographic Characteristics Favoring Purchase Of Hot Cocoa Mix By Brand April 2000-March 2001
  • Addresses Of Selected Marketers

Abstract

The flavored dairy beverage business is poised for unprecedented growth in a category that previously positioned milk as a commodity rather than a drink. This new report from Packaged Facts provides historical data as well as market growth projections fn the flavored dairy beverage business, which encompasses refrigerated and shelf-stable flavored milks and milkshakes, coffee-milk drinks, dairy-based drinks, yogurt beverages, smoothies, milk flavorings, hot cocoa mixes. Learn how you can become part of this $2.2 billion beverage segment, which is predicted to show double-digit growth during the next decade. This report details innovations in flavors, packages, and manufacturing, which are just some of the driving forces behind new product development. Learn how single-serve bottles, licensed characters, cool flavors, carbonation, and old-fashioned wholesomeness are making milk and milk-based beverages the drink of choice for today's healthy lifestyle-seeking, grab-and-go consumer. The report also includes profiles of the top players in the flavored dairy beverage business, demographic data and brand share information.

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