Page 40 - Retail World March 2021

DAIRY CASE A CASE FOR PLANT- BASED MILKS The sustainable, ethical and wellbeing benefits of plant-based milks are said to be the category’s key drivers, according to Califia Farms Australian Marketing Manager Gemma Goorjian, who adds, however, that many consumers are also just looking to try new products that they may like the taste of. As more plant-based milks and products enter the market to meet demand, Ms Goorjian says the key challenge for this category is fridge space. “More space allocation for refrigerated alternative milks will allow greater choice for consumers,” she said. Ms Goorjian also advises retailers to keep having open conversations with their trusted supply partners “so we can work together to achieve the best result for customers”. Plant and planet-based ‘benefits’ Califia Farms’ plant-based milks and cold brew coffees continue to perform “strongly” in the dairy case, due to more people turning to plant-based diets or trying out products in the category, according to Ms Goorjian. She describes Califia Farm’s products as “delicious, nutritious and convenient” as well as good for the planet, adding that the brand works closely with its retailers to see what the “most effective and meaningful way” to reach its customers is. “That may be in-store with an appealing POS design that jumps out on shelf,” she said, “or it may be a form of online advertising, now that shopping online is a popular way to purchase supermarket items.” TO PAGE 40 A COMMITMENT TO ORGANIC 38 RETAIL WORLD MAR, 2021 The Organic Milk Company is promoted as a collaboration of the largest network of organic dairy farmers in Australia. According to General Manager Ryan Reynolds, the company made the move towards ethical, certified organic farming practices to deliver Australian families fresh milk and dairy products that are free from genetically modified ingredients, chemicals, pesticides, added hormones and antibiotics. He says the journey began in 2015 after the directors of Australian Consolidated Milk (ACM) noted the growing demand for organic milk products. “After identifying the opportunity, a recruitment and conversion program commenced to take the milk pool from zero in 2015 to what is now the largest in Australia today,” Mr Reynolds said. “This program has provided farmers a full solution from soil management, herd health, organic feed supply, financial assistance and administration to certification.” In 2019, ACM commissioned the construction of a modern processing facility with specialised systems that effectively process organic milk for the retail and ingredients market. “This investment has been key to delivering high quality, cost competitive products, and signals a long-term commitment to the organic dairy industry in Australia,” Mr Reynolds said. With the trend towards plant-based products, he points to The Organic Milk Company observing demand from consumers for higher levels of transparency points among dairy brands around sustainability practices and animal welfare. “Our business has strong environmental management programs in place,” he said, “with a pipeline of initiatives in development to further improve carbon footprint. “The organic farming system has relatively low levels of intensity on the land, with a focus on regenerative crops and self-sufficiency, to supply water and feed for the dairy operation. Our communication strategy will work to explain these initiatives to consumers seeking transparency in their food choices.” Mr Reynolds cites “varying degrees” of shelf ready compliance within the category: very strong support among retailers for spreads, but less so for cheese. “To ensure the highest levels of availability and reduce the amount of effort to merchandise, we’ve converted our entire range to shelf ready cartons, to improve the on-shelf presence and create clear signposts for our offering in the categories we play in,” he said. Looking ahead, The Organic Milk Company believes the impact of Covid-19 will produce a “long term and sustained change” in consumer preferences for local products. “There’s an opportunity for brands and retailers that can leverage localised product offers and demonstrate transparency through the supply chain.” “We think there’s an opportunity for brands and retailers that can leverage localised product offers and demonstrate transparency through the supply chain, which will create greater trust and loyalty with customers,” Mr Reynolds said. Organic cheddar cheese is a key priority for the company. “In the US and Europe, organic cheese contributes up to 15 per cent of the cheese category sales versus less than one per cent in Australia,” Mr Reynolds said. “With great quality, consistent supply and a strong value proposition, we feel very strongly about the cheese category and the opportunity for organic offers. “As the largest organic dairy business in Australia, our category approach is to directly drive the segments where we have manufacturing capability, and also be an integral supply partner to brands in the broader dairy category.”