OMEGA-3 AND FATTY ACIDS | PERRY’S ICE CREAM | HEAT EXCHANGERS, HOMOGENIZERS
February 2011
Innovative Ideas for Dairy Processors
Milk & Beverage
OUTLOOK
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February 2011 Vol. 112, No. 2
S P E C I A L F E AT U R E S
Milk, Juice and Tea Outlook
On our cover: The industry knows the benefits of milk, but do consumers? Milk has a short ingredient statement (see page 48). A diet high in dairy products could reduce the risk of diabetes (see page 38). And processors constantly improve the beverage, with added calcium, for example (see page 28). This month, we focus on milk.
Features News & Trends 10 Newsline What’s on America’s plate; Kraft promotes recycling of cheese packaging; trade pact with South Korea would benefit the dairy industry.
Perry’s Ice Cream Perry’s Ice Cream of Akron, N.Y., has invested in its plant, advertised more heavily, entered new markets, created new products, sought and captured private label business (both domestically and internationally) and developed its distribution business. Has it all worked? In a year when ice cream sales declined about 4%, Perry’s revenues were up 8%. p. 51
New Products & Marketing 22 New Product Review Cheese
26
Departments 8 16 20 72 76 81 85 86
Today’s milk and non-dairy beverage processors cater to the Every Consumer with drinks that deliver nutrition, taste and functionality. Processors market dairy beverages as workout aids, develop lactose-reduced products and more drinkable yogurts and boost the health profile with probiotics. Today’s processors formulate juices and ready-to-drink teas that cater to the consumer looking for the ultimate drinking experience. p. 28
Ingredient Technology 38
44
Dairy Market Trends Some milk products are gaining share.
Editorial People Supplier News Equipment Showcase Buyers Mart Classified Ads Index of Advertisers Inside Perspective
Friendly Fats These fatty acids wear a healthy and wellness halo.
REPORTS
51
Lab Talk Working with nuts and inclusions.
46
Tharp & Young
60 New Equipment Lands New
How to make better frozen novelties
48
Culturally Speaking Cheese, milk and butter have a clean-label advantage.
The Data-driven Company Perry’s Ice Cream analyzes sales, demographics and return-oninvestment before it makes a move.
Customers 66 Behind The Scenes 68 Beyond the Filler 70
Packaging Points
Tom Gallagher of Dairy Management Inc. looks out for the industry. DAIRY FOODS Volume 112, Issue 2 (ISSN 0888-0050) is published 12 times annually, monthly, by BNP Media II, L.L.C., 2401 W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) 362-3700, Fax: (248) 362-0317. No charge for subscriptions to qualified individuals. Annual rate for subscriptions to nonqualified individuals in the U.S.A.: $178.00 USD. Annual rate for subscriptions to nonqualified individuals in Canada: $216.00 USD (includes GST & postage); all other countries: $228.00 (int’l mail) payable in U.S. funds. Printed in the U.S.A. Copyright 2011, by BNP Media II, L.L.C. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations. Periodicals Postage Paid at Troy, MI and at additional mailing offices. POSTMASTER: Send address changes to: DAIRY FOODS, P.O. Box 2144, Skokie, IL 60076. Change of address: Send old address label along with new address to DAIRY FOODS, P.O. Box 2144, Skokie, IL 60076. Canada Post: Publications Mail Agreement #40612608. GST account: 131263923. Send returns (Canada) to Pitney Bowes, P.O. Box 25542, London, ON, N6C 6B2. For single copies or back issues: contact Ann Kalb at (248) 244-6499 or
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Dairy Foods | February 2011
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From the Editor’s Desk
DST (Dairy Savings Time)
S
aving permeates this edition of Dairy Foods. You’ll find news articles and features about saving energy and saving the Earth (through recycling) throughout this issue. Saving our health, by eating better foods, kept popping up in the news last month. And saving (or salvaging) milk as a beverage was a theme at the just-concluded Dairy Forum. Let’s start with sustainability. Kraft has ramped up its partnership with TerraCycle, an organization that recycles plastics and other products (including electronics). Not only does TerraCycle keep material out of landfills, but also it recycles the plastic into new products (like fences and tote bags). By sending Kraft wrappers to TerraCycle, consumers can earn money for schools or charities. (Other Kraft brands, including Capri Sun, have been participating since 2008.) Like Box Tops for Education or Upromise, this program can drive (or cement) preferences to Kraft brands. Read more on page 12. In his Packaging Points column (page 70), Mike Richmond writes, “We are also seeing more companies across the packaging value chain make strong statements toward packaging waste reduction and zero waste on packaging.” He lays out 10 points that processors need to consider as they convert to sustainable packaging. Besides the material itself, package design, graphics and brand-building come into play. Sustainable packaging “is not a fad but a legitimate trend,” he writes. Dairy processors strive to be efficient in their production. By doing the job right the first time, they eliminate product waste and rework. There is a green aspect to being efficient. Still, employees generate waste when they bring their own packaging to work. Lunch bags, sandwich wrappers and beverage containers will end up in the landfill unless they are somehow diverted. Perry’s Ice Cream created a recycling center in its cafeteria to collect soda bottles. The Akron, N.Y.-based company donates bottle-deposit proceeds to a different local charity at the end of each quarter. Over the past 10 years, this program has supported local organizations such as fire companies, the food pantry and youth organizations such as 4H and the boy and girl scouts. Read more about Perry’s in our series of articles, beginning on page 51. Logistics ace Don Wilson considers greenhouse gas emissions from dairy processors’ fleets. “Economically sustainable distribution, logistics and manufacturing are part of the continuously changing bottom-line challenge that must be met for any dairy or ice cream company to be profitable,” he writes. See Wilson’s “Beyond the Filler” column on page 68. From waste to waist Walmart, the nation’s largest grocer, said it would reformulate thousands of packaged food items by 2015 by reducing sodium 25% and added sugars 10%, and by removing all remaining industrially produced trans-fats. In making the announcement in January, the Bentonville, Ark.-based retailer said it will work with suppliers to improve the nutritional quality of national food brands and its Great Value 8
Dairy Foods | February 2011
Jim Carper
private brand. First Lady Michelle Obama, who has her own campaign (Let’s Move) to eliminate childhood obesity, joined Walmart as it made the announcement. Talk about a halo effect. Five key elements of the program are making healthier choices more affordable; reducing or eliminating the price premium on key “better-for-you” items, such as reduced sodium, sugar or fat products; developing criteria for a front-of-package seal to help consumers instantly identify truly healthier food options; providing solutions to address food deserts by building stores in underserved communities; and increasing charitable support for nutrition programs that help educate consumers about healthier food solutions and choices. Less than one week after Walmart’s news, major food and beverage manufacturers and retailers unveiled Nutrition Keys, their own voluntary front-of-pack nutrition labeling system. Four icons will show calories, saturated fat, sodium and sugars. Labels might also show information about “nutrients to encourage” that are important for a healthy diet but are under-consumed by the general population. These include potassium, fiber, vitamins A, C and D, calcium, iron and protein. The scientific community continues to explore the composition of foods and how dairy products contribute to health. In “Friendly Fats,” product development editor Donna Berry writes, “Harvard scientists recently found that a monounsaturated fatty acid found in dairy fat, one naturally occurring in the trans-configuration, may help prevent the onset of type 2 diabetes. The compound is trans-palmitoleic acid, and its prevalence in milk, cheese, yogurt and butter may help explain other recent research suggesting that high-dairy diets reduce the risk of diabetes.” Berry convened a roundtable of suppliers of fatty-acid ingredients. Turn to page 38 for the full report. Saving milk To get Americans to drink more, processors need to divert us away from bottled and tap water, carbonated beverages, teas, juices and energy drinks. Breakfast and lunch are the most common milkdrinking occasions, so the industry needs to find (or create) other occasions. Chocolate milk is touted as an effective post-workout recovery drink. It makes sense then to sell milk at health clubs. The industry needs to develop innovate products, too. Who’s up for creating a creamy, indulgent milk-based beverage to be consumed in the evening? All of these ideas were presented at the Dairy Forum in Miami last month. Already, 2011 is proving to be an exciting year for food and beverages, especially dairy. I haven’t mentioned the government’s new dietary guidelines, which were released after our deadline. (We’ll get to them next month.) No doubt you are expending (not saving) energy when it comes to innovation. Tell me what’s new at your company. 䡲 Jim Carper is chief editor of Dairy Foods. Phone: 847-405-4009. Email:
[email protected].
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