Chilled yoghurts are coming into their own as convenient, healthy snacks. Household penetration of premium products has doubled in the past year, while virtually fat-free is also experiencing growth. Helen Gregory reports
Yoghurts have a lot going for them: the obesity debate puts low-fat or fat-free variants in a favourable light, and they’re probably one of the most convenient products, particularly in tube or drink form. However, the challenge is to get shoppers swapping sweets and chocolate for a dose of dairy, as Müller reckons only 1% of snacks feature one of its pots.
And while manufacturers try to crack the snack issue, they’re also keen to get consumers trading up; shoppers might fork out for posh crisps such as Walkers Sensations, but they’re not completely sold on premium yoghurts.
Says Müller MD Andrew Harrison: “It wasn’t that long ago that yoghurt was considered dull and worthy. It’s taken time for the premium products to get into people’s consciousness.”
Müller’s Short Life Dairy Product report [ACNielsen 52 w/e December 25, 2004] shows that the premium yoghurt market is worth £24m and penetration has risen from 8.5% of households to 17% last year.
And as premium products grow, so too do virtually fat-free versions - both at the expense of standard lines.
Healthier kids are a good incentive and handheld products are adding value to the sector as parents look for virtuous snacks for their children.
Gerry Roads, marketing director at Yoplait Dairy Crest, explains: “Parents are drawn to the category over concerns that children aren’t getting enough calcium.”
The total chilled yoghurt and pot desserts market is worth £1.5bn, up 5.3% year-on-year [TNS 52 w/e January 30, 2005], with chilled yoghurts up 7.5% to £852m.
Although branded products represent nearly two-thirds of the market - with Müllerlight and Müller Fruit Corner in the top spots - own label is increasing its share, growing by 8.3% in value.
Yoghurt drinks are showing the biggest rise - up 67.6% to £199m [ACNielsen 52 w/e December 25, 2004]. Women are already converts, and it’s the wider population who are the manufacturers’ next target,
as kids and men are encouraged to knock back probiotics and guzzle low-fat yoghurts.
But the sector needs to keep a check on the large number of new products, warns Steve Dixon, Nisachill/freeze’s buying controller: “We need to watch we don’t get carried along with all the media hype, only to find the market goes stale due to overkill by too many people chasing market share.”
Chilled pot desserts are also attracting more interest, and the sector is up 1.4% to £459m. It’s a big opportunity for indulgent branded products, and Gü Chocolate Puds has met the challenge with its range of chocolate products such as Little Pots Au Chocolat.
The two-year-old company says UK consumers now demand more quality and are moving away from mass-produced products. MD James
Averdieck reckons Gü has moved the market on in terms of indulgent desserts. “It’s another level of quality that didn’t exist before.”
And, although ambient desserts might not have the sexiness of some of their chilled counterparts, Del Monte’s Fruit Express and its Fruitini Juice and Fooly products are attracting consumers who are making time for desserts at breakfast and lunch too.
Yoghurts have a lot going for them: the obesity debate puts low-fat or fat-free variants in a favourable light, and they’re probably one of the most convenient products, particularly in tube or drink form. However, the challenge is to get shoppers swapping sweets and chocolate for a dose of dairy, as Müller reckons only 1% of snacks feature one of its pots.
And while manufacturers try to crack the snack issue, they’re also keen to get consumers trading up; shoppers might fork out for posh crisps such as Walkers Sensations, but they’re not completely sold on premium yoghurts.
Says Müller MD Andrew Harrison: “It wasn’t that long ago that yoghurt was considered dull and worthy. It’s taken time for the premium products to get into people’s consciousness.”
Müller’s Short Life Dairy Product report [ACNielsen 52 w/e December 25, 2004] shows that the premium yoghurt market is worth £24m and penetration has risen from 8.5% of households to 17% last year.
And as premium products grow, so too do virtually fat-free versions - both at the expense of standard lines.
Healthier kids are a good incentive and handheld products are adding value to the sector as parents look for virtuous snacks for their children.
Gerry Roads, marketing director at Yoplait Dairy Crest, explains: “Parents are drawn to the category over concerns that children aren’t getting enough calcium.”
The total chilled yoghurt and pot desserts market is worth £1.5bn, up 5.3% year-on-year [TNS 52 w/e January 30, 2005], with chilled yoghurts up 7.5% to £852m.
Although branded products represent nearly two-thirds of the market - with Müllerlight and Müller Fruit Corner in the top spots - own label is increasing its share, growing by 8.3% in value.
Yoghurt drinks are showing the biggest rise - up 67.6% to £199m [ACNielsen 52 w/e December 25, 2004]. Women are already converts, and it’s the wider population who are the manufacturers’ next target,
as kids and men are encouraged to knock back probiotics and guzzle low-fat yoghurts.
But the sector needs to keep a check on the large number of new products, warns Steve Dixon, Nisachill/freeze’s buying controller: “We need to watch we don’t get carried along with all the media hype, only to find the market goes stale due to overkill by too many people chasing market share.”
Chilled pot desserts are also attracting more interest, and the sector is up 1.4% to £459m. It’s a big opportunity for indulgent branded products, and Gü Chocolate Puds has met the challenge with its range of chocolate products such as Little Pots Au Chocolat.
The two-year-old company says UK consumers now demand more quality and are moving away from mass-produced products. MD James
Averdieck reckons Gü has moved the market on in terms of indulgent desserts. “It’s another level of quality that didn’t exist before.”
And, although ambient desserts might not have the sexiness of some of their chilled counterparts, Del Monte’s Fruit Express and its Fruitini Juice and Fooly products are attracting consumers who are making time for desserts at breakfast and lunch too.
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