A2B-Lancaster Farming, Saturday, June 22,1985
Powerhouse firms show their faith in dairy products
BY JAMES H. EVERHART
LANCASTER Although dairy
purists may recoil in disgust, the
dairy products of the 1980 s are
clearly the “nutritious snack
foods” that are taking America by
storm.
As more and more consumers
demand convenience foods that
have “natural, nutritious” labels,
the giant food companies are
rediscovering dairy products.
It’s no coincidence that huge
conglomerates like Hershey
Foods, General Mills, General
Foods and Pillsbury are making
strong moves to add dairy-related
snack foods to their lineups.
It all indicates a lot of high-level
confidence in the dairy industry,
though producers most likely won’t
reap the benefits for five years, at
the earliest.
Part of the confidence is well
founded. General Foods, for in
stance, is broadening and ex
panding its offerings of “Pudding
Pops,” the dairy-based “pudding
on a stick” that has become one of
that firm’s most successful new
products ever.
After some disappointing test
marketing and initial consumer
response, “Pudding Pops” went on
to record $lOO million in sales their
first year, an enormous success.
And though dieticians may turn
up their noses, the performance of
“Pudding Pops” has done a great
deal to increase the viability of
other milk-related products, and
boost milk as an important
element in the arena of “natural,
nutritious” ingredients, dairy
promotion experts say.
Perhaps the biggest success of
late has been Hershey Foods’ new
Chocolate Milk, which has been in
nationwide distribution for a little
more than a year.
Originally test-marketed in the
Lancaster area, Hershey’s
Chocolate Milk has exploded the
myth that a milk product cannot be
sold nationwide.
The product is manufactured
according to strict Hershey
standards in a network of 70
dairies around the country.
And though now being
challenged by archnval Nestles,
the Hershey brand has become the
top-selling chocolate milk in the
country, according to Dennis
Eshleman, Category Development
Manager for Hershey.
The product is positioned to seize
Hershey Foods , General Mills , General Foods
on several deficiencies that the
public has perceived in chocolate
milk over the past few years,
Eshelman said.
First, chocolate milk products
have become relatively in
consistent over the past few years,
as manufacturers tried to im
plement economies that allowed
them to compete successfully for
school lunch programs, experts
said.
More importantly, said
Eshleman, consumers noted that
much of today’s chocolate milk is
not as chocolatey as it once was.
In both instances, Hershey, with
its quality image and reputation
for chocolate manufacture, was
the perfect company to counter the
negative public perceptions of the
product.
The firm combined the right
product with superb packaging
and marketing, which earned the
company an “Effie” award, the
American Marketing Association’s
version of the “Oscar.”
And though the firm won’t
release sales figures, Eshleman
said it will soon be promoting the
product as a “very good alter
native” to soda.
Hershey’s aggressive campaign
to promote the product “has
dramatically expanded the
category,” or has resulted in
significant increases in sales of
both chocolate and regular milk.
Hershey sees great potential in
other milk products as well, says
Eshleman, who notes that, in the
past, “milk is something that has
been undermarketed.”
For instance, in' some of the
areas where the products were
introduced, he said, the Hershey
commercials were the first milk
ads that many consumers had ever
seen
Even now, he said, several states
prohibit the kind of promotional
devices especially couponing
that are common throughout the
beverage industry.
Nevertheless, he said, he expects
to see more “national consumer
products companies” enter the
field with milk or dairy-based
products, as companies see the
profits to be earned.
General Foods will certainly be
one of the most important entrants
in the sweepstakes, with several
new Pudding Pop flavors and more
intense marketing of its Dover
Farms frozen whipped cream.
Others include General Mills,
which will expand its production of
Yoplait yogurt with a new plant in
Hazleton, and Pillsbury, which
hopes to expand and lock up the
“super premium” ice cream
market with Haagen-Dazs.
Meanwhile, both private com
panies and industry-funded
researchers attempt to develop
striking new dairy products that, it
is hoped, will capture the public’s
imagination.
The newly established product
development laboratory of Dairy
Research Inc. (nicknamed
DRINC), is working on a number
of projects, including a high
calcium milk, an effervescent
milk-based beverage and a low
calorie, low-cholesterol butter.
The DRINC research is directed
mainly at the following a variety of
leads, and turning over the
developments, when they occur, to
the major manufacturers, for a
share of later profits.
The basic assumption, says
DRINC President Anthony J.
Luksas, is that concepts or
products that were not technically
feasible just a few years ago are
now waiting to be developed.
Ice cream manufacturers have
always been more aggressive than
any other part of the dairy industry
in developing new products.
Not surprisingly, they’re getting
in on the act too, with a $l2 million
advertising campaign.
“People take ice cream for
granted,” said John Speer, of the
International Association of Ice
Cream Manufacturers. And his
group wants “a whole array of
products” for consumers to choose
from.
That "whole array" includes
everything from water ices and
sherbets to premium, super
premium and "designer” ice
creams, he said. And the in
dications are that consumers will
be very selective about their ice
cream choices, a process which, he
stud, will only upgrade the entire
Overall, as the dairy industry ABS exec earns NAMA award
struggles to find its way in the
rough-and-tumble world of the
Eighties, it must be conscious of
the difficulties of introducing new
products, says Phil Keeney,
professor of food science at Penn
State
Companies that market new
products nationwide have to go
through extensive research,
testing and marketing, just to get
the product off the ground.
He cited years of research, in
cluding idea generation, focus
groups, pilot projects, test
marketing, and further develop
ment that goes into the process of
readying a new product for the
market.
After that, there’s the process of
creating, expanding or revising
production lines and refining the
manufacturing process to produce
the product on a large scale.
It all takes millions and millions
of dollars, requiring the capital,
research and marketing skill of a
major consumer products com
pany.
That’s why, he says, the best to help the farmer,” he said. “You
opportunities for immediate im- develop them to meet a consumer
provement lie with “improving the need or desire.”
Farm Calendar
Saturday, June 22
National Holstein Centennial Sale,
Syracuse.
Beaver/Lawrence County dairy
princess contest; Bigland
Grange, Rochester.
Crawford County dairy princess
pageant, George and Dons
Brown Farm, Cambridge
Springs.
Susquehanna County dairy prin
cess pageant, Montrose Fire
Hall, Montrose.
Warren County dairy princess
pageant, Warren County 4-H
Center, Pittsfield.
Sunday, June 23
National Holstein Convention,
June 23-26, Hartford, Conn.
Pa. Flying Farmers meet at 1 p.m.
at Rover Airport between
Fontana and Campbelltown on
Route 322.
Ephrata Young Farmer picnic,
Ephrata Community Park;
12:30 p.m. Contact Harry
Becker, 733-7589
Monday, June 24
4-H Leadership Congress, Penn
State University; Continues
through June 27.
DEFOREST, WI. - Robert E.
Walton, President and General
Manager of American Breeders
Service, has received the National
Award for Agricultural Ex
cellence.
The award program, ad
ministered by the National Agn-
Marketing Association, was
presented during NAMA’s recent
conference in Orlando, Florida.
Walton was honored for
achievements in the agribusiness
area. His contributions as a
geneticist in the development of
breeding programs designed to
improve milk production in dairy
cattle were specifically cited.
iU 1
t
attractiveness of existing
products,” or having dairy
products added to new or existing
brands not generally considered
dairy products.
Most importantly, however, he
said, the industry must be much
more consumer-oriented in its
promotional efforts.
‘‘You don’t develop new products
, Tuesday, June 25
Farmer’s Field Day, Rodale
Research Center, Kutztown,
9:30 a.m. and 1 p.m.
Thursday, June 27
Eastern Region Jr. Angus Show,
York; Continues through
Saturday.
Friday, June 28
Erie County dairy princess
pageant, Mill Creek Mall, Erie.
Wyommg/Lacawana County dairy
princess pageant, Marks Ole
House Restaurant, Tunkhan
nock.
-Saturday, June 29
Bedford County Beef Preview
Show, Bedford Fairgrounds
Phone Bedford Extension, 814-
623-5148.
Berks Wool Pull, Reading Fair
Livestock Building, 7 a.m to 3
p.m.
Wednesday, July 3
Lancaster Conservation District
monthly board meeting at 7:30
p.m at the Farm and Home
Center
In addition, as head of ABS, he is
credited with having guided the
company through a period of
impressive business growth both
domestically and in foreign
markets.
Walton earned B.S. and M.S.
degrees from Oklahoma State
University and a Ph.D. degree in
Animal Breeding from lowa State.
He also holds a certificate from
Harvard Business School for
Management Development. He
was named President of ABS in
1968 and has received numerous
honors for his contributions to the
livestock and dairy industries.