But in the yogurts and dairy desserts market it is the latter which is driving the overall 7% growth. The 13% growth in the desserts sector has been driven by numerous promotions involving discounts on the normal price of the product. Müllerice, in particular, has performed well, increasing sales by 32%. Müllerlight also launched a Summer Fruits and Tropical Fruits mousse into the desserts sector in March. This was followed by a chocolate yogurt in July, which has been one of the most successful new product launches from Müller so far. The chocolate yogurt is already taking a 3% market share and has gained high distribution in all the major retailers. The Müller brand continues to dominate the top 20 dairy products, with Müller Corners, Müllerlight and Müllerice all experiencing double-digit growth. A constant stream of new products and flavours has had the effect of adding sales to the brand rather than causing consumers to switch to the new flavours. Müller is the biggest manufacturer behind own label with a 25 per cent share of the market. The company also benefits from heavily promoting its products, with price cutting offers such as the long-running three for 99p offer. This has been a unique offer, not only because it has been running for the past two years, but also because it allows consumers to purchase any product from the Müller Corner and Müllerlight range. Müller has coupled these promotions with high profile advertising campaigns running throughout the year, which have also helped its growth figures. The pleasure-pain theory' adverts have been aimed at young women, while the various There's Love and There's Müller Love' themes introduced this year target men and young mothers. The adverts focus on the indulgent nature of the Müller products, rather than low fat or healthy benefits. Growth in the children's sector has mainly come from normal yogurts and portable products. Although portable products are the smallest sector in the children's market, holding a 12% share, they have experienced growth of more than 12%. Portable products add the novelty factor of being served in a tube or pouch without the need for a spoon. Yoplait dominates the portable sector, as specialist manufacturing techniques make it difficult for other manufacturers to enter the market. Petit Filous Frubes remain the bestselling product, experiencing 7% growth mainly driven by the newer chocolate variant. Munch Bunch Squeezy Pot Shots, Choobs and Yo to Go are the main competitors in this area. Fashion-driven licensed products are also providing growth in the children's sector. Finding a television character that will stay popular for the long haul is the key to success, as new products tend to cannibalise sales. The popularity of Bob the Builder and Tweenies this year saw a massive increase in sales of their branded yogurts and fromage frais, while sales for Thomas the Tank Engine, Star Wars and Disney have been declining. Character branding appeals to the children's sector as it holds kids' interest in the products. This is especially important for the dairy market where the short attention spans of children are suited to the short shelf life of the chilled products. This is also good for parents as it encourages children to eat yogurts and fromage frais instead of sugary or fatty snacks. However, even young children can be subject to peer pressure and if a product doesn't match these expectations, the likelihood is that it won't be eaten. As the number of character branded products grows, retailers are being forced to reduce the number of character lines they stock to focus on the big sellers. Despite this, sales are increasing in most stores. Unlike most of the yogurts and dairy desserts market, branded products sell well due to the popularity of the character at the time, rather than relying on in-store promotions and price cuts. Rowntree has expanded its children's brand portfolio with Swirly yogurt desserts and Fruity Centre fromage frais, launched in April. The range also includes a drinking yogurt, which is just behind Yop in the top five. These product launches have resulted in a massive increase in the value of the Rowntree brand in the dairy sector. The Müller children's range, Yogz, has also been performing well, with sales increasing by 36%. New products in the adult sector have driven growth, although the sector as a whole has remained fairly static. Launched in January, Müller Corners with Kellogg's cereals have performed well. Three variants are available ­ Crunchy Nut Corn Flakes, which is aimed at adults, and Frosties and Coco Pops, which are aimed at children. These new extensions have taken advantage of the growing perception of yogurt as a suitable breakfast food, and that it is a convenient snack to eat on the go for those of us who are too busy for breakfast. Since its launch in February Yoplait Best There Is has achieved more than £3m of sales. This was the first product from Yoplait to be launched in the adult sector. The light yogurt sector is experiencing a 1% value decline, although volumes are up by more than 1%. While some manufacturers have experienced a decline, Weight Watchers and Müller have been driving value growth, both experiencing a sales increase of 16 per cent each. The Weight Watchers from Heinz range benefited from a relaunch in January this year that included new packaging and flavours such as mango and guava, lemon and lime, and orange and nectarine. Own label light products have been among the worst affected by the decline in the sector, experiencing a value decline of more than 26 per cent. The light products sector has been affected by cannibalisation from the organic and functional sectors. While the yogurt and dairy desserts market is considered by consumers as a healthy sector on the whole, functional products are given extra appeal due to the added benefits they provide. Increasing consumer awareness of such benefits and the high price point they demand have driven the value increase in the two sectors. The organic sector has experienced a 26% increase, with Yeo Valley dominating this sector. It holds a 73% share. Petits Filous and Müller both entered the organic market this year, but it remains to be seen whether consumers will take to these as organic foods. Both manufacturers have commented that they are filling a gap in the market and increasing the choice for consumers who want organic products, but under a big brand name that they trust. However, traditional organic manufacturers have voiced concerns that when the manufacturing processes are taken away from farms into mass production alongside conventional products, corners may be cut resulting in food that cannot claim to be completely organic. Although still a niche sector, taking only 1.5 per cent share of the market, a trend towards healthier eating has encouraged the 265% value increase in the functional sector. New product development has had a hand in its growth, especially from manufacturers such as Danone and Müller. Danone Bio Activia and Müller Vitality were launched towards the end of last year and have both experienced impressive growth this year. Thanks to Activia, the Danone Bio range is now just outside the top 10 ranking, with overall sales of almost £13m. Actimel, the healthy probiotic yogurt drink from Danone, has achieved 76% growth to overtake last year's leader, Yakult. Benecol cholesterol-lowering functional yogurts have grown by 66% and are now worth more than £4m. Benecol Light cream cheese spread has also performed well, adding almost £2m to the value of the brand this year. The Johnson & Johnson owned company McNeil Consumer Nutritionals expanded the Benecol range into snack bars in January and 750ml milk cartons in October 2001. While sales of the standard Benecol and Benecol Light spreads have been declining, Benecol Olive Spread, launched last year, has performed well, notching up sales of more than £3m. Introduced at the end of last year, and The Grocer star product in 2000, Flora Pro-Active from Van den Bergh has made it straight into the top 20. A similar idea to Benecol, Flora Pro-Active claims to reduce cholesterol levels as part of a healthy diet. The popularity of the traditional Flora brand has helped Pro-Active to achieve sales almost double those for its rival Benecol. The launch was supported by a £10m media spend including adverts featuring Sir Steve Redgrave and showing that even the fittest of people can have a need to reduce their cholesterol levels. Yellow fats is the only sector not to achieve value growth in the dairy market, although there has been some activity this year. The launch of Flora Pro-Active has proved that products offering additional benefits can increase market value through premium pricing. Usage occasions for yellow fats are limited, as there is not much room to expand into other meal occasions. Spreadable variants have proved popular. Lurpak Spreadable is the bestselling brand with growth of 12%. This has been to the detriment of the original Lurpak brand which has declined, although growth in the spreadable version is more than enough to balance this. The same is true of Anchor, whose spreadable version is growing by 16%. Lurpak has further extended its range with the launch in September of Lurpak Lighter Spreadable, a spread which contains 25% less fat than traditional butter. Accompanying this launch has been an advertising campaign featuring the long running, animated trombone-playing Douglas, this time attempting to fly. The two brands have been competing head on, with Lurpak taking Anchor customers. There was surprise, then, at the announcement by manufacturers Arla Foods and New Zealand Milk that they were to merge their yellow fats operations. The new company will be called Arla Foods Fonterra, which it is hoped will be in a position to take on the likes of Flora and start focusing on wider market issues rather than competing against each other. This decision may result in further consolidation in the yellow fats market in the future. {{P&P }}