Dairy Checkoff Helps Drive Sales Growth in 2021

Dairy Checkoff Helps Drive Sales Growth in 2021

Checkoff’s foodservice partners continued to increase sales of US dairy products and more domestic dairy products destined for the international market. Increased efforts have also been made to connect with the valued Gen Z consumer and the dairy sustainability journey has reached new levels.

These and other results are some of the main highlights for Dairy Management Inc. starting in 2021.

Despite a year of continued COVID-19 challenges, the dairy fund has fulfilled its mission of boosting sales and confidence, said President and CEO Barbara O’Brien, who took over from Tom Gallagher in October.

“We have not only adapted to the realities of the pandemic, we have used it as an opportunity to become even more consumer-centric and more efficient and collaborative,” said O’Brien. “We were more determined to tackle the challenges facing dairy products and found new growth opportunities in the dairy category.

“Through it all, we’ve been able to show that farmers are an essential part of the American food system. It was a year when the milk sample made every drop count. “

O’Brien noted the continued success of checkoff foodservice partnerships with globally recognized companies Domino’s, Taco Bell and McDonald’s. She said overall sales of dairy products at these chains have increased 3 to 6 percent this year.

Here are some highlights of the partnership from 2021:

Checkoff scientists at Taco Bell headquarters helped the chain launch the Mtn Dew Baja Blast Colada Freeze, which features a cream made from dairy products. The team also helped Taco Bell relaunch the Quesalupa, which uses seven times more cheese than the chain’s regular taco.

Domino’s has responded to consumer needs with a new cheese marinara and five-cheese dips accompanied by parmesan or garlic twists.

McDonald’s featured McFlurries in consumer promotions that increased sales of dairy products.

International sales growth

The partnership model that has worked so well at the national level has found more space internationally. Selling more dairy products in overseas markets is important to US dairy farmers, as 1 in 6 milk tankers make their way to the international market. Additionally, 96 percent of the world’s population lives outside of the United States, and people adopt a Western diet and have a taste for American cuisine, including cheese.

In June, DMI entered into a partnership with Alamar Foods Company, which owns 455 Domino’s stores in the MENAP region (Middle East, North Africa and Pakistan). DMI’s partnership will focus on approximately 300 locations in Saudi Arabia and the United Arab Emirates (UAE) with the aim of increasing cheese sales in the United States.

For Pizza Hut, the focus in Asia Pacific was on value promotions in support of takeout and delivery in key markets in the region including Japan, Korea and Indonesia. . To date, the growth of American cheese in Asia-Pacific has more than doubled since the partnership began. Additionally, Domino’s Japan has launched two American cheese dishes: the Jumbo Pizza and the Pizza Rice Bowl. This innovation combines a familiar Japanese dish with pizza toppings. Since the start of the DMI / Domino’s Japan partnership in 2019, the chain’s American cheese volume has doubled.

Further growth in sales of US dairy products internationally is being achieved through the American Dairy Export Board, founded by Checkoff. Through October, total US dairy exports rose 11 percent from the same period a year earlier and are holding steady at a record pace. The value of exports rose 17 percent to $ 6.48 billion in the same period, also a record pace.

Improved Generation Z, sustainability efforts

Checkoff’s teams at the national and local levels continued to work to reach Gen Z consumers (ages 10 to 23), who make up 20 percent of the population. They have a purchasing power of around $ 100 billion, which does not take into account the influence they have over their parents when it comes to products brought home.

That’s why the Levy kicked off a wave of the Undeniably Dairy campaign in October to create a deeper connection between Gen Z and dairy and give them new reasons to choose it over other products. ‘Reset Yourself with Dairy’ is a youth-centric initiative that uses a variety of media channels and marketing strategies, including games, social media influencers and digital content, as well as retail and college campus promotions. , to engage with Generation Z.

And America’s dairy sustainability efforts have been given a boost in many ways. First, levy-led efforts have finalized 5-year agreements, up to $ 10 million, with Nestlé and Starbucks to support research, on-farm pilot projects, and efforts to increase adoption. Volunteer for environmental practices and technologies on all farms through the US Dairy Net Zero Initiative. (NZI).

Additional funding from NZI – a $ 10 million grant from the Food and Agriculture Research Foundation (FFAR) – will enable the Dairy Soil and Water Regeneration Project to research feed production over the next six years. The Greener Cattle Initiative was also announced, a research program developed with FFAR and five partners to provide $ 5 million over five years to support research into mitigation of enteric methane from livestock.

More highlights of the 2021 direct debits

The farmer-founded Fuel Up to Play 60 program has been repositioned in a new way to help students and educators navigate the new school year. Fuel Up to Play 60 unveiled an easy-to-navigate website (www.FuelUpToPlay60.com), an educator dashboard, and an improved student app that allows teachers and parents to learn about and access the program. to resources focused on dairy nutrition and care of dairy farmers For the environment.

The National Dairy Council has led a variety of dairy-focused educational outreach efforts, which included farmers, with key opinion leaders heading to the United Nations Food Systems Summit (UNFSS) in September. The event brought together international stakeholders from across the food system with the aim of making food production and consumption more sustainable and will serve as a call to action to achieve the United Nations Sustainable Development Goals by 2030 .

National and local collection teams, along with dairy companies and other organizations, helped move 664 million pounds of dairy products through Feeding America’s network of 200 food banks in its most recent fiscal year (July 1, 2020 – June 30, 2021). This is an increase of 195 million pounds from the previous year for the monitoring partner, which seeks to distribute more than 900 million pounds of dairy products per year by 2025.

E-commerce milk sales were up 24% and cheese sales by 16% (through October compared to the previous year), fueled by Checkoff’s partnership activities with Amazon and Kroger.

Drinking milk partners Darigold, Kroger and Shamrock Rocking Protein launched or extended value-added products this year with support for samples.

More highlights and picking strategies are available at www.usdairy.com/for-farmers

Source: Dairy Management, Inc.


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