Keeping Dairy Contemporary

Value-added processing, unique culinary enhancements, cross-category product pairings, and promises of better everyday and planetary health drove sales in the $73.5 billion dairy sector for the 52-week period ending July 2, 2023, Circana reports. Dollar sales in multi-outlet retailers were up 15.1%, while unit sales dropped by 2.3%.

At $17.0 billion, milk was the largest dairy category, followed by natural cheese ($12.9 billion), and eggs ($10.6 billion), with dollars sales up 5.8%, 8.0%, and 43.3%, respectively. In descending order after eggs, butter/margarine, whipped toppings, cream cheese, cottage cheese, sour cream, cream/creamers, and yogurt all posted double-digit sales growth, per Circana. Cottage cheese, whipped toppings, and natural cheese posted unit growth. Here’s a look at highlights in three key dairy categories.

• Milking It. Better-for-you value-added milks—organic, grass-fed/pasture-raised, lactose-free, ultra-filtered, and A2/A2 varieties—continue to drive milk sales, per Circana. Organic A2/A2 Half & Half and A2/A2 Organic Non-Fat Milk Powder, both from Alexandre Family Farm, a producer of Regenerative Organic Certified products, are among the latest tummy-friendly milk innovations.

Chefs surveyed by the National Restaurant Association cited oat milk, nut milks, and seed milks as top-trending nonalcoholic beverages for 2023. Lattini Chocolate Sunflower Seed Milk is billed as an excellent source of calcium, vitamin B12, and vitamin E.

• Cheese, Please. Circana reports that processed cheese sales climbed by 8.2% for the 52 weeks ending July 2, 2023, just slightly faster than natural cheese sales grew, while sales of deli specialty cheeses were up 5.5%.

Saputo’s new Armstrong Mmmm … Bacon is a shredded cheese blend with real bacon bits that is suitable for use in making omelets, casseroles, and more. Savencia Cheese has expanded its Alouette line with a Brie for Grilling. The 4.5-ounce wheels are the same diameter as a hamburger bun, which makes it easy to cut slices for melting on top of a burger.

Flavored cheeses, including burrata, Cotija, hot pepper, smoked, and herbed varieties, are growing faster than the cheese category overall, per Circana. The Vermont Creamery created a Strawberry Spritz goat cheese variety sweetened with honey and blended with strawberry pieces. Carr Valley Cheese makes a port wine–soaked Boozin’ Billy cheese.

Crave Brothers offers heart-shaped fresh mozzarella cheese pieces packed in brine; it suggests using them on charcuterie boards or to top salads. Montchevre Goat Cheese Duos logs, which feature one flavor at the center core and one in the remaining cheese, come in varieties including Blueberry + Lemonade.

Although raw milk cheese is still a niche category, it represents a fast-emerging natural cheese category. Sweet Grass Dairy offers Asher Blue Raw Cow’s Milk Cheese. Raw Sharp Cheddar is available from Organic Valley.

Sales of dairy alternative cheeses declined by 5.7% for the 52-week period ending July 2, 2023, according to Circana. Kraft Heinz recently debuted vegan Kraft NotCheese Plant-Based Slices in provolone, cheddar, and American varieties. Kraft Heinz partnered with TheNotCompany, an innovator in the plant-based space, on the product. Vegan cheese company Seeductive Foods has launched Marinated Feta made from a blend of seed milks marinated in a combination of olive oil, herbs, and red pepper.

• Dairy and Nondairy Desserts. Whipped topping sales shot up by 22.9% for the 52 weeks ending July 2, 2023, reaching $1.9 billion, according to Circana. Sales of specialty dairy desserts were $1.1 billion in that period, up 5.3%, Circana reports.

Mochi, tiramisu, mini sundaes, cannoli, and panna cotta are among the fastest-growing dairy desserts on menus over the past four years, according to Datassential. Limited-edition ice cream flavors like Campfire Peanut Butter Cup from Tillamook are gaining popularity.

Blue Bell Creameries introduced Dr. Pepper Float, which features vanilla ice cream swirled together with Dr. Pepper flavored–sherbet. Hudsonville rolled out Strawberry Shortcake Ice Cream Bars.

Mochidoki offers Vegan Passion Fruit Mochi Ice Cream. Plant-based frozen dessert maker Craig’s Vegan introduced a lineup of single-serving plant-based products in five flavors, including Melrose Mint Chip and Killa’ Vanilla. And Häagen-Dazs made oat milk–based frozen desserts in three flavors available in the Canadian market this spring.ft