Peter Wennström was invited to present on “Marketing opportunities in mass market dairy looking at strategies for both Europe and Emerging markets” at the Gira Dairy Club international meeting in Geneva last month.

Innovation Opportunity
From Peter’s presentation, the key opportunity for developed markets in mass market dairy is to leverage what the consumer already knows about the nutritional goodness (benefits) of milk.

Dairy is still considered the GOLD STANDARD nutritional food for children in most European markets. The Category Essence of milk is still Natural and Healthy and after a long focus on low fat and carbohydrates and the trends are moving back to protein and full fat in a natural diet.

The opportunity, he states, lies in leveraging the above and innovating with Dairy Based Solutions in Early Mass market. Similarly, the need to keep loyalty of traditional mass market consumers is vital.

Peter gave an excellent example of mass market dairies making the most of opportunities in this category:

Here is one example from Avonmore Milk. We have a full case study on Avonmore Milk. If you are interested in having us walk you through it, please contact us.

You can find the full presentation on Mature Market Opportunities, including the 5 Rules for Market Entry Strategy, in the below presentation.

Opportunities in Emerging Market Dairy Presentation.

GIRA Dairy Club
Gira Dairy Club also presented their 2011 Global Study; a comprehensive analysis and forecasting report on world milk production including the cheese, butter, SMP, WMP and technical ingredients sectors. The findings from the report (summarized below) confirm growing opportunities in dairy, and specifically emerging markets – check out our BRIC Innovation Paper for more insight into breaking innovation barriers in BRIC markets.

About the report
The GDC is a global study with unique overviews and insights into dairy products, markets & operators worldwide. Comprising 20 individual Country Reports and a World Synthesis and Presentation. Among the key messages from their presentation:

The growth of demand for drinking milk, essentially for the children of Asia’s new middle classes, is creating a need that the world’s dairy industry is ill equipped to supply

Many ex-poor, now rapidly developing economies, have far higher milk prices than in the EU and the US

Pent-up Indian demand for butter and powder could radically change the shape of world dairy markets

The size and growth of the dairy companies themselves – the Top 20 control 20% of the world’s milk – will increasingly drive world markets. Dairies have always been price-takers – this is about to change

Worldwide milk and dairy commodity prices are increasingly moving together, requiring a completely new management approach in every country and in every part of the supply chain.

Ever higher and more volatile price cycles make milk valorization a key issue for dairies’ survival

 
For more information about Gira Dairy Club and the Global and Country Reports click HERE or contact us.