Dairy’s New Dynamics

With rising commodity costs cutting into profits, retailers are looking for innovative new products to lure even cost-conscious consumers to the dairy case. According to Progressive Grocer’s October 2008 "Dairy Operations Review," two-thirds are seeking foods/drinks that address consumer health concerns; 41% want more natural and organic products; 25% seek fresher products; and 12% want more functional items.

Grocers reported that healthy items equal healthy sales: 79% cited yogurt as the fastest…