Why Dairy Brands Need to Re-Think Packaging

dairy, cpg, grocery, milk, yogurt, butter, cows, farm
Just because all cows look similar to most people doesn’t mean dairy products should.

Starting at the top, I spend more time than is normal in grocery stores. I walk down the middle aisles of the store, stopping at random spots to just stare at different types of canned tuna. I was recently shopping for some sweetener, stevia to be exact, and I was looking at all my options. Liquid Stevia, Stevia in the Raw, Organic Stevia and then there was Truvia. I picked up the Truvia, and the packaging was a bit different. It was more of a rectangular shape than the other “square-like” package stevias. The design was simple, different shades of green on the top and a strawberry on a white background. Even though it was more expensive than the surrounding products, I bought it. The lesson: PACKAGE DESIGN IS EVERYTHING.

Product design can create breakthroughs in any category, take soap for example. Method was (and continues to be) a company going up against giants like Procter and Gamble, SC Johnson and Dial that was able to breakthrough with its unique design, making the bottle a statement piece at everyone’s sink with a focus on responsible ingredients. While the packaging was what got the product to stand out on the shelves, the environmental responsibility the soap represents is what really makes the point of differentiation. Since Method’s emergence, we have seen the larger players in this category create products to compete with Method.

Opportunities like this are still out there in grocery stores, I look specifically to the dairy section for the next breakthrough. (Now, I realize I’m about to sound like Andy Rooney, so please excuse me, but) why does every bottle of milk or container of sour cream need to have a cow and a grassy field on it? You know what message this sends to the consumer? That all milk is the same!

When it comes to dairy, all brands are treated equally.

Sometimes the cow looks like a cartoon, sometimes it’ll look like a half cow – half human. Sometimes the grassy field is a rolling one, sometimes it’s flat with a tree in the distance. Regardless of the type of cow or field on the bottle, the real question is why? Even a brand like Horizon, which owns 4.2% of the total organic product market still falls prey to this trap.

Think about the audience. For the most part, the consumers are mothers with children under the age of 18 buying the product. Is it really necessary to put a cartoon cow on your milk? Can’t we re-think what the gallon of milk looks like today?

We discovered from our own research study conducted in Q2 of 2015, 68% of Millennials purchase store brand dairy items (click here to download our study on millennial grocery shopping habits). Knowing that other generations tend to mirror the behavior of the Millennial, I’m going to make the assumption that this 68% doesn’t fluctuate much when you look at mothers older than 34.

So what does this mean? Well, when it comes to dairy, all brands are treated equally. Obviously, you’ll have your mothers that will always choose to buy organic dairy but regardless of that fact, if you are a dairy brand, why are you not doing everything you can (which right now wouldn’t take much effort) to stand out in the dairy aisle?

Another Missed Opportunity – Shamrock Farms

Take Shamrock Farms, one of the largest family-owned dairy processors in the country. They provide dairy products to most of the western United States.

A few points of differentiation Shamrock Farms have over their competitors is that they don’t use the growth hormone rBST and don’t use High Fructose Corn Syrup in their milk. But the brand really doesn’t take advantage of that. They do give small real estate on their packaging to the fact that they are rBST free but don’t take advantage of branding themselves as being “better dairy.” How do they choose to show off their unique product? They put a damn cartoon cow on the carton, just like everyone else.

Product Packaging Done Right

One brand that I think is doing it right is Noosa Yoghurt. Their packaging is very simple with black lettering and the product description is in the color associated with the specific ingredient. The container is different than most other yogurts (theirs is flatter) and it’s a clear container so you can actually see the product. This may not seem like anything groundbreaking but just do a quick Google image search for yogurt brands and you’ll see why Noosa stands out.

It’s only a matter of time before a company comes along and totally changes the way we look at dairy. If it can happen to the soap industry, it can happen to any industry.

Interview With Gluten-Free Flour Brand, Blends by Orly

gluten free, flour, cpg, grocery, brand
Orly Gottesman has figured out how to sell a niche product to an audience in need

At Food & Restaurant Marketing, we are obsessed with understanding the type of insights that allow brands to break through a crowded category like the gluten-free industry. This 3.2 billion dollar industry (Statista 2016) demands brands to take unique approaches to positioning their products. With almost 30% of all adults in the U.S. trying to avoid gluten, we wanted to talk with someone who is intimately involved with the industry to discover insights about this ever-growing audience and what drives them to consider gluten-free products.

Blends by Orly

Orly Gottesman, a Le Cordon Bleu graduate, discovered her passion for baking while at culinary school. During that same time, Orly’s husband Josh discovered he had celiac disease. Josh, who grew up in the baking and restaurant business, thought his life was over. He’d never be able to enjoy a bagel again. Orly saw an opportunity to focus her studies on gluten-free and worked with the head chef of the baking program to conduct an independent study around gluten-free baking.

From there, Orly set out to create the highest quality gluten-free flour blends for those that love baking. Blends by Orly launched in August 2014 and since that time, Orly has been navigating her brand through a rapidly growing industry.

I recently sat down with Orly over Skype to learn more about her business and customers.

AB: What have you learned about your current audience that made you take a different look at how you thought about your brand?

OG: First, we learned that this is a very female-focused product. For a demo, we would bake a whole bunch of product, mostly cookies. Women would love them and say, “oh wow that’s a really great idea to make cookies with this blend.” Men would come over and say, “where can I buy these?” Then we’d tell them that actually the product is the flour and you actually have to bake them. They’d look at me and say, “oh, I don’t bake.” Even a man who had three children with celiac walked up to me, loved the cookies and said, “not for me.”

I find that I’m wasting my time talking to men. Even the buyers at supermarkets, the female buyers always get it more than the male buyers, unless they are a chef.

The other key element I’ve found is that the blends don’t sell as well in cities or densely populated areas like Manhattan. Kitchens are tiny and people generally won’t bake if they feel like they don’t have enough space in their kitchen. We sell much better in suburban areas. People that do a lot of cooking and entertaining are really our sweet spot in terms of a target audience. Also, it’s a higher priced product, so it’s a given that we are seeing higher income customers interested in our product.

AB: How large is the gluten-free business and how many people suffer from celiac disease?

OG: 1% of the total population suffer from celiac disease. Many of my customers actually don’t have celiac disease. They do, though, find themselves sensitive to gluten or have other autoimmune diseases. Gluten can cause inflammation, so many people get off gluten to support an anti-inflammatory diet. The good thing about my blends is that they provide options for dietary restrictions like a sugar-free, gluten-free diet.

AB: Any opportunities or feedback from your customers on new products?

OG: I have recently launched a kosher baking mix for Challah in three different flavors: traditional, chocolate chip, and poppyseed & onion. That was very specific and the opportunity was clear in terms of bringing a new product to the market that doesn’t exist.

I’m also thinking a lot about distributing a pre-baked gluten free bread product. Blends are great for a very specific audience. If I’m going to expand, I think it’ll have to be with ready-made products. I don’t want to come out with just another cake mix.

AB: How are you attracting the audience that is considering a gluten-free diet?

OG: We are beginning to send nutritionists promotional material. Nutritionists are the first ones a doctor sends them to if they need to alter their diet. For example, I was diagnosed with hypoglycemia and I learned I was eating too much sugar and gluten. These nutritionists will recommend easing up on the gluten. They aren’t going to recommend trying a gluten- free brownie mix. They’re going to recommend finding a wholesome gluten-free flour like one of my blends. Some of the specialty markets we are in will have nutritionists on site, so we talk to them and let them know about our product. We’re starting to consider the right time to put together a plan for marketing.

AB: What was your initial strategy for distribution and how has that changed over time?

OG: Starting out it was “the chicken or the egg” scenario. We started out doing all the distribution ourselves. Obviously, you’re not going to find a distributor to take you on initially if you don’t have accounts, and then a lot of stores don’t want to take you unless you have a distributor. Our initial strategy was to just pound the pavement and go to stores that would allow us to distribute directly to them. It was truly door to door sales and cold calling.

Once we had enough stores with our product, we then decided to go to the distributors and show them what we accomplished and why we are a great product that people need. We got a distributor on board with us and focused only on New York and New Jersey. We took this same model of starting out by self-distributing in Chicago and then moved to a local distributor there as well as on the West Coast. But it’s a very long process.

AB: What’s the biggest challenge you are facing right now with distribution?

OG: We realized we really need brokers. We were a little late in the game here, but we’re learning fast that the brokers are the ones who get your product moving off the shelves and keep the orders coming.

If you’re interested in learning more about Blends by Orly, please check out her website where you can learn more about her gluten-free flour blends and order product: http://blendsbyorly.com/