Gavin Costello, Global Graduate Insight & Planning, Bord Bia - The Irish Food Board
This FoodAlert will examine the revival of high-fat yoghurts in the US, discuss a brand that’s currently winning in this space and explore some implications for Irish suppliers.
Over the decades health professionals have demonised dairy for its saturated fat content and, as such, created the market for low-fat dairy products. However, a growing body of research is rolling back the negatives about dairy fat, disproving its connection to risk of cardiovascular disease. It has also proven more positives beyond calcium, such as dairy’s role in reducing risk of Type 2 diabetes, and the role of protein in weight management, bone health and healthy ageing (NewNutrition Business, 2019)1.
The International Food Information Council Foundation’s 2019 Food and Health Survey has revealed that 80% of US consumers say they are limiting or avoiding sugar in their diets. Additionally, reducing sugar consumption is the biggest change people have made to their diets over the last decade. It has also reported that the percentage of people who follow a keto or high fat diet has doubled since 2018 to 6% (IFIC, 2019).
Peak, the new brand of ‘triple cream’ yoghurt is emphasising its low levels of added sugar, its high content of ‘healthy’ fats and its relevance to this growing keto diet to create a new niche in the US yoghurt market. In less than two years on the market Peak has achieved an annual run rate of about a half-million dollars in sales, with a new $650,000 middle round of financing and expectations for expansion (NewNutrition Business, 2019)2.
Peak ranges between 15 -17% milk fat depending on the flavour with the plain unsweetened yogurt deriving over 80% of calories from fat and just 4g total carb per 270 Cal serving. The flavoured variants derive over 70% of calories from fat and 11g total carb per serving. Peak also provides over 200 billion probiotic bacteria per serving (PeakYoghurt.com, 2019).
Traditionally, higher fat yoghurts have also contained higher levels of sugar and are both positioned and marketed as indulgent and not something healthy. Peak are driving innovation in this category by creating a range whose appeal is not restricted to just fans of the keto diet but also attracts consumers who are trying to reduce their sugar intake.
As outlined in the Bord Bia Consumer Lifestyle Trends, ‘health and wellbeing’ plays a vital role in the global industry. The health and wellness category is currently valued at €170bn in the US and has experienced year on year growth since 2013 (Euromonitor, 2019). Health and wellbeing has long been a key element of dairy’s consumer appeal, and is now a more important part of dairy strategy than ever before.
There are many opportunities for companies to build successful businesses on a health and nutrition connection as global consumers demand for ‘healthy’ products proves insatiable. Irish suppliers could capitalise on this to grow their business by exploring this space. Moreover, they could take some key learnings from this brand on how to best align with developing trends and how to be more innovative in terms of new product development which fill gaps in the market and that best meet demands of the consumers.
Sources:
- NewNutrition Business – ‘How dairy can make the most of its natural advantage’ – April 2019
- The International Food Information Council Foundation(IFIC) ‘2019 Food and Health Survey’. Retrieved 16th September 2019 from https://foodinsight.org/wp-content/uploads/2019/05/IFIC-Foundation-2019-Food-and-Health-Report-FINAL.pdf Retrieved 16th September 2019
- NewNutrition Business – ‘High-fat yoghurt targets keto trend’
- https://peakyogurt.com/
- https://www.bordbiaconsumerlifestyletrends.ie/
- Passport. (2019). ‘Health & wellness in the US’. Retrieved 16th September from http://www.portal.euromonitor.com/portal/Analysis/Tab
- Image retrieved from NewNutrition Business, https://www.new-nutrition.com/