ROSEMONT, 111.—Dairy pro
ducers and fluid milk processors
are working together to expand
fluid milk sales through conven
ience stores and vending ma
chines, where today’s consumers
buy more than one-third of their
beverages, but only 3 percent of
their milk.
The producer- and processor
funded Fluid Milk Strategic
Thinking Initiative (FMSTI) com
missioned independent studies
concluding that both of these dis
tribution channels can be used to
increase fluid milk sales.
To accomplish this, the studies
suggested the dairy industry must
improve packaging, product varie
ty, sales support and effectively
educate convenience store and
vending operators about the high
profit potential of milk.
One of the FMSTI studies
shows that milk traditionally has
ben successful in bringing cus
tomers into convenience stores,
and that consumers who purchase
milk spend more money overall in
the store. But stores miss out on
additional sales when they don’t
restock milk in a timely manner.
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“The industry must work to
show these outlets the true sales
potential of milk, then provide
stores with the right incentives,”
said Linda Racicot, executive vice
president of domestic marketing
for Dairy Management Inc.™,
(DMI) which manages the nation
al dairy producer checkoff.
“We need to capitalize on
milk’s advantages over soft
drinks,’’ added'David Weitzer, a
Poolesvillc, Md., dairy producer
and DMI board member. “We
need to communicate to c-stores
and vending machine operators
that milk has two major things go
ing for it—kids really like flavor
ed milk, and milk packs a nutri
tional punch with proteins, vita
mins and minerals.”
FMSTI research indicates the
dairy industry can sell more milk
through these outlets it if makes
changes in four areas:
• Improved product offerings
including consumer-friendly
packaging (easier-to-handle) car
tons, more attractive graphics) and
multiple flavors for kids.
• Increased education about
milk’s high profit potential, the
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popularity of single-serve contain
ers, which offer higher margins,
and the importance of stocking
adequate suppliles.
• Improved sales support
through in-store promotion, ad
vertising and merchandising pro
grams, including signage and tray
s that highlight the dairy proces
sor’s logo.
• Food partnerships bund
ling of milk with complementary
foods, such as cookies; the dairy
industry aims to partner with a
cookie manufacturer to test mar
ket a milk-and-sweet-snack vend
ing machine later this year.
“Innovations like these will go
a long way toward making milk
more convenient and attractive to
consumers," DMTs Racicot said.
“By working closely with conven
ience stores and vending machine
operators, producers and proces
sors can accomplish this efficient
ly and effectively.”
The Fluid Milk Strategic Think-
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ing Initiative (FMSTI) is a co
operative effort of the Milk Pro
cessor Education Program (Milk-
PEP) and Dairy Management Inc.
(DMI). It was founded in 1995 to
explore ideas and make recom
mendations for increasing milk’s
competitive position among other
beverages, thus leading to increas
ed sales.
Its first phase addressed the ap
pearance of skim milk, labeling
terms, and packaging, die results
of which can be seen in recendy
introduced products from proces
sors across the country. The sec
ond phase is addressing milk’s
availability in underutilized chan-
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nels of distribution.
FMSTI is part of the overall
integrated $lB7 million fluid milk
marketing partnership between
DMI and MiIkPEP, designed to
address consumer barriers to in
crease consumption of fluid milk.
Dairy Management Inc.™ is the
nonprofit domestic and interna
tional planning and management
organization responsible for in
creasing demand for U.S.-pro
duced dairy produced dairy prod
ucts on behalf of America’s dairy
fanners. DMI manages the Ameri
can Dairy Association 0 , National
Dairy Council® and U.S. Dairy
Export Council®.
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