of ingredients from specific countries are other routes to
adding value, and such strategies have successfully been
adopted in the milk, yogurt, cheese, and ice cream
categories to date.
The convenience and snacking trend is driven by an
emphasis on portability and portioning (single-serve for-
mats). Flavored milks in lidded on-the-go cups represent
a prime example of portability, as do spoon-free yogurts
and desserts and hand-held ice creams. Cheese snacks and
single-serve dessert formats are other sectors that make
full use of portioning. The development of 100-calorie
portions in the United States is another trend impacting
the market in both the convenience and the health-
and-wellness categories. These single-serve formats
allow consumers to monitor their calorie intake at the
same time as providing convenient, single-serve formats
for snacking.
In the lifestyle and ethics category, the organic revolu-
tion has been central to new product development (NPD)
(despite the recent downturn in the fortunes of the organic
sector owing to economic recession). The success of
organics is also very much linked with premiumization
issues, as consumers often consider organic foods to be of
better quality than standard lines and, in response to this,
many of the organic developments (particularly in the
yogurt and desserts, and ice cream sectors) now primarily
use premium ingredients as well as organic milk.
Fairtrade, most closely linked with sectors such as coffee
and chocolate, is also beginning to make its mark in a
much wider range of markets, and the dairy sector has
not escaped its attention. To date, most of the Fairtrade
developments have been found in the ice cream market,
where coffee, vanilla, and chocolate flavors are most pro-
minent, but there is scope for further development in
other dairy markets in the future. The Fairtrade move-
ment also tends to be closely linked to the organic industry
and, as a result, many of the Fairtrade ice cream products
appearing also contain organic ingredients.
New-Product Launches as an Indicator
of Trends
Reviewing recent product launches in the UK market,
one can see that health, convenience, and premiumization
remain the key trends. Health is the driving force behind
the yogurt category, which is increasingly being spear-
headed by functional brands. Numerous products have
been relaunched on a health platform in the last two
years, often highlighting calcium content (especially chil-
dren’s products), as well as promoting the versatility of
yogurt. However, although probiotic ingredients are now
par for the course, functional ingredients as a whole are
still an area of confusion for consumers and not all
guarantee success (as evidenced by Mu¨ller removing
omega-3 from its Vitality brand).
The luxury end of the yogurt market also continues to
witness high levels of innovation. Danone has attempted
to bridge the gap between functionality and luxury with
its Activia Intensely Creamy launch in 2008. Also at the
premium end, the Swiss dairy company Emmi launched
muesli yogurts in the market in 2007. This launch also
reflected another growing trend: positioning of yogurt as a
specific breakfast product.
Highlighting the origin or type of fruit/flavor has been a
marked feature of the market in recent years, for example,
Madagascan Vanilla, Senga Strawberry, and Champagne
Rhubarb. This development meets the growing consumer
demand for more authentic flavors and tastes and for
provenance in food. Several Lassi products have also been
launched in the market on this type of platform.
In the cheese sector, provenance has been a key trend
with growing demand for cheese produced from local
milk and with local ingredients. The health drive also
has impacted this area, though, with numerous lower-fat
cheese variants appearing. Dairy Crest and Lactalis have
introduced lighter Cheddar versions, within their
Cathedral City and Seriously ranges, respectively. The
UK reduced-fat Cheddar market was worth £56 million in
2008, according to TNS, and growing strongly, up by
36%. The key challenge that producers are trying to
address is how to improve the taste of lower-fat cheeses.
Children’s cheeses have also been a focus area, parti-
cularly healthier variants. Kerry Foods launched a light
version of its Cheestrings brand in 2007 and then
relaunched the full range in 2008 with a greater emphasis
on the nutritional aspects of the product. Kraft Foods
relaunched Dairylea Lunchables in 2007 with less fat
and reduced salt levels as well as its Philadelphia Light
snack brand. Dairylea Bites also no longer contains artifi-
cial colors, flavors, or preservatives.
Continental cheese has also been a growing area of
interest with British consumers becoming more adven-
turous with both their cooking and their eating habits.
Retailers have been reporting strong sales of Feta,
Emmental, Parmesan, Mozzarella, and goat’s cheese,
and new products are appearing in these sectors.
Cheese with added fruit (e.g., Wenslydale with
cranberries, Stilton with apricots) continues to emerge,
while several smoked cheeses have appeared on the
market. A general trend toward more premium and
mature varieties, such as the vintage Cheddar, and strong
flavors has also been witnessed indicating that taste has
become a key area of focus with a more adventurous
consumer base emerging in this area.
Convenience also continues to remain a key issue
influencing development of the UK cheese market, with
mini portions and lunchtime snack products being a focus,
along with presliced, resealable, and grated formats to
42 Additives in Dairy Foods |Consumer Perceptions of Additives in Dairy Products