Word: yogurts
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Food-marketing expert Balzer says yogurt's appeal is its convenience. "Yogurt has this wonderful halo of health, but the ease is what drives the category. In the mid-'80s, pizza was the food of the day. Today it's yogurt," he says. "Clearly it's a structural change in the way we're eating." Yoplait's goal, says Waldron, is to get yogurt into more meals and snacks during the day, on more days of the week...
...category's growth is also being propelled by studies that suggest the nutritional benefits of eating dairy products as part of a low-calorie diet. And yogurt, as a predigested, cultured dairy product, can be an alternative source of calcium for people who are lactose intolerant. Nonfat and low-fat dairy foods contain seven nutrients of which American diets generally fall short: calcium, potassium, fiber, magnesium and vitamins A, C and E. Three servings of yogurt daily help prevent osteoporosis and contribute to weight loss. Of course, not every yogurt product is as healthy as its image. An average...
Dannon believes that healthy yogurt can fit comfortably under the convenience umbrella, and it is spending $60 million in advertising to educate consumers about the health and digestive benefits of probiotics--and make them more aware of Dannon's Activia and probiotic drink DanActive. Dairy groups in Europe, where probiotics are well established, see the segment as a major driver of growth over the next few years. "Yoplait will understand the success of Activia and follow soon," says Dannon CEO Juan Carlos Dalto. It's not every CEO who invites competition, but here's his logic: "You don't need...
...Organic-yogurt sales are limited only by the growth in organic-milk production, which is climbing 20% to 30% annually. "It's the 10,000-lb. cow in my life," says Hirshberg. To find enough organic milk, Stonyfield Farm subsidizes farmers as they convert to organic production and offers price guarantees on the milk it buys. "Conventional-milk pricing has fallen to levels not seen since the 1970s," says Hirshberg. "It's a disastrous situation for farmers with a cost structure based on 2006 energy costs." The only silver lining, he says, is that it has helped some dairy farmers...
...could buy its way in. The obvious target would be Horizon, the No. 2 brand in organic dairy products. But Waldron appears content to enjoy Yoplait's spot as the nation's No. 1 brand. He would say only that he is watching for the day when "emerging yogurt segments will have more mass appeal...