- 2013 saw a continued trend towards soft spreadable cheeses and more international-style soft cheeses. These types of cheeses are consumed more when entertaining or for light snacking, as opposed to hard cheeses, which are generally used for lunchtime sandwiches or in main meal cooking. As a result of the trend towards snacking, Fonterra Brands (NZ) Ltd introduced a range of hard cheese snack varieties such as Mainland Sticks and Mainland Cheese & Crackers in 2013.
- There were no real significant value share changes among companies within cheese over 2012-2013.
- The main trends within cheese over the forecast period will be natural trends (ie unprocessed over processed), smaller pack sizes (snack packs and lower volume blocks), a stronger variety of speciality cheeses (including goat and sheep products), and more cheeses marketed for cooking.
Drinking Milk Products
- 2013 was an innovative year in terms of new packaging in the dairy industry, particularly for fresh/pasteurised milk products. Fonterra Brands (NZ) Ltd introduced a light-proof bottle throughout its Anchor-branded milk range in 2013, which was trademarked by the company. The bottle consists of three layers to stop light penetrating the liquid, keeping it fresher and protecting the nutrients within the milk for longer. This was seen as a great innovation, particularly in the highly competitive fresh/pasteurised milk environment, where it is hard to differentiate between brands of milk. Fonterra Brands (NZ) Ltd embarked on a strong marketing and educational campaign to support the light-proof bottle using the slogan “If milk was meant to see the light, cows would be see-through”. Interestingly, prices of Anchor milk remained the same when the added-value packaging was launched.
- Fonterra Brands (NZ) Ltd led the category with a value share of 34% in 2013, up slightly on 2012. The company remained strong due to being owned by Fonterra, one of the largest dairy co-operatives in the world. Therefore, Fonterra Brands (NZ) Ltd is a significant driver of category growth within New Zealand. The most innovative development in 2013 was the introduction of the Anchor Light-Proof bottle, which was advertised on New Zealand television. Anchor was also the key brand sponsoring the Fonterra Milk for Schools programme. Furthermore, during 2013 Primo Extremo was rebranded Anchor Fast Start. Fonterra Brands (NZ) Ltd also possesses the flavoured milk drink range, Anchor Calci-Yum, which targets children. Anchor held a 32% brand share in 2013, up slightly on 2012 due to strong activity during the year, and remained the top-ranked drinking milk brand. Other brands under the company’s banner included Primo, which had a value share of just over 1%. The brand lost some share due to the rebranding of Primo Extremo in 2013. The most interesting new product development for the Primo brand in 2013 was the launch of the co-branded Primo Pineapple Lumps. Fonterra Brands (NZ) Ltd joined with Cadbury Confectionery Ltd’s Pascall Pineapple Lumps brand to create a new flavour variant within its flavoured milk drinks range. The product was expected to be sold for a limited time, but proved so popular that it remained in the Primo range over the 2013 summer period.
- One of the trends expected over the forecast period is health and wellness, as seen through low-fat, fortified/functional and non-dairy products (for consumers who are lactose intolerant). In addition, the development of more products targeting children is expected. Manufacturers are likely to encourage parents to choose drinking milk products over soft drinks as a healthier alternative.
Yoghurt and Sour Milk Drinks
- 2013 saw a strong surge in the entry of premium, dessert-style yoghurts, which drove value growth in the category. In particular, smaller domestic companies were innovative in the development of such products, such as Epicurean Dairy Holdings Ltd through its The Collective brand, and Hauraki Dairy Ltd with its Piako brand. Gourmet yoghurts included flavours such as Russian Fudge, Blood(y) Orange and Coconut, Bush Honey, and Apple and Blueberry.
- Fonterra Brands (NZ) Ltd led the category in 2013 with a value share of 45%, down one percentage point on 2012. Fresh ‘n’ Fruity remained the strongest brand in the category, ranking first with a value share of 40% in 2013. The Fresh ‘n’ Fruity brand remained a more mainstream offering, which competed directly with Meadow Fresh, both applying price discounts during the year. Although the brand is strong, the brand’s share has declined since 2011 when it held 41%. The brand demonstrated little development in terms of premiumisation and packaging over the second half of the review period, with only flavour innovation taking place.
- A number of trends are expected within yoghurt, which has seen strong innovation from smaller domestic players. Trends include fortified/functional yoghurts (probiotic and prebiotic), premium positioning, dessert-style yoghurts, hybrid drinking/pourable yoghurts, and the development of packaging through the use of tubes and pouches, which may be targeted towards children.
- 2013 was a year of rebranding for Fonterra Brands (NZ) Ltd throughout its dairy portfolio. Most smaller brands were rebranded to the well-known and iconic Anchor brand. This included Country Goodness sour cream products, Country Goodness cottage cheese products and the Swiss Maid chilled-dairy desserts and custards falling under the Anchor portfolio.
- Fonterra Brands (NZ) Ltd continued to lead the category with a current value share of 40% in 2013, remaining unchanged from 2012. The company concentrated on rebranding its other dairy range of products to uniformly represent the Anchor brand, an iconic and well-known brand in New Zealand. This saw the Anchor brand jump from a 22% value share in 2012 to 34% in 2013, dominating other dairy products. Consequently, the Country Goodness brand dropped from a brand share of 16% in 2012 down to 5% in 2013, not experiencing a full year of sales. The Anchor brand was ranked first in chilled dairy-based desserts and cream, and is likely to lead fromage frais/quark after the completion of rebranding.
- It is expected that the main focus within other dairy over the forecast period will be health and wellness trends, particularly the provision of low-fat products. Private label offerings are expected to make in-roads in some categories, while it is expected that other categories will grow further due to the influence of European cuisine. Growth categories are expected to include fromage frais and quark (development beyond cottage cheese) and shelf-stable, soy-based and chilled snack categories, which remained in their infancy within New Zealand during 2013.
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Discover the latest market trends and uncover sources of future market growth for the Dairy industry in New Zealand with research from Euromonitor's team of in-country analysts.
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The Dairy in New Zealand market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Dairy in New Zealand?
- What are the major brands in New Zealand?
- How has the economic downturn impacted sales performance given its staple food status?
- Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
- How are volatile farmgate prices for milk impacting retail prices and sales performance?
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This industry report originates from Passport, our Packaged Food market research database.
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