Oikos’ new packaging
Danone North America
Oikos Greek Yogurt will start this summer with a new look and formula as Danone aims to revitalize the North American category.
As of last year, the total U.S. market was $ 10.1 billion, according to Euromonitor International. With more than a third of the total market share, Danone is the best yogurt producer. Chobani, which helped make Greek yogurt home, but later spread to other food categories, ranks far second with 19.1% of the market. (Chobani plans to go public in later this year.)
“The category itself, the previous pandemic, has been relatively flat for several years. Some accelerations have been observed during the pandemic, such as average single-digit growth rates, but I don’t think it has accelerated,” he said. it’s fair to say. to the extent that some of our other segments have done, ”said Shane Grant, CEO of Danone North America.
Grant took the reins in that department last year after working as head of the Coca-Cola carbonated beverage business department. Since the French company acquired WhiteWave in 2017, North America has become an increasingly important part of Danone’s overall business, nearly doubling its business in the United States.
Danone’s strong impact on the U.S. yogurt consumer is largely due to its success in the health category with Activia probiotic yogurt and plant-based yogurt, which is currently the fastest growing part of yogurt. . Danone sells non-dairy yogurt under the Silk brand.
However, growth in Greek yogurt, the largest segment of the yogurt category, has slowed significantly, although sales have increased due to the pandemic. For the 52 weeks ended May 29, U.S. retail sales of Greek yogurt accounted for 4.6 percent, according to Nielsen. Two years ago, sales of Greek yogurt fell 7.4 percent in the same period.
“The Greeks, while this is very consistent, have not been at least one of the real engines of yogurt growth in the last few years, and that’s something we’ve seen, enough excitement by millennial consumers. did not do with. ”Grant said.
Through several feedback from consumers, Danone Oikos has embarked on a remodeling of blended nonfat yogurt with 50% more fruit and creamy flavors. He also cut off the bottom in favor of mixing the fruit across the yogurt. The new packaging has a white background with bold letters.
Oikos-mixed yogurt began hitting grocery store shelves in June. It will go on sale nationwide by Danone by July with great marketing momentum.
And time is not a coincidence either. Grant noted that a “good portion” of yogurt consumption goes to consumers who take yogurt glasses with them when they leave home. During the pandemic, these cases almost disappeared, but were replaced by breakfast, as many consumers worked remotely and in recent years began making their own breakfast. But now buyers are becoming more mobile as states lift restrictions and many employers are preparing to recall their workforce to the office.
Rebranding and reform is Danone’s third step in strengthening the Oikos brand, as part of its strategy to revive demand for yogurt. It was reinvested in Oikos Triple Zero, which contains zero fat, zero percent added sugar and no artificial sweeteners. Last year, he launched the Oikos Pro, which contains 20 grams of protein.
“We saw an opportunity here – because the Greek is big, the biggest component of yogurt – that we think is in the market to take action that could restore a component of the yogurt market,” Grant said.
.
