Aisle Reinvention Could Increase Overall Dairy Department Sales by $1 Billion

FOR IMMEDIATE RELEASE — October 13, 2009

Rosemont, Ill. — 2009 Worldwide Food Expo audiences will get a first look at the “Dairy Department of the Future” in a presentation showcasing results of a three-year, dairy farmer-funded project that will help shape the future of the retail dairy aisle. Dairy Department of the Future proves that a revitalized dairy aisle can increase dollar sales by 1.5 percent and dairy unit sales by 2 percent to 3 percent. The reinvented dairy department not only makes it easier to shop, but educates and engages shoppers while optimizing space.

Dairy Department Reinvention: Path to Growth and Differentiation will be presented by the Innovation Center for U.S. Dairy and Willard Bishop, LLC, on Friday, Oct. 30, 8-9 a.m. at the Worldwide Food Expo at McCormick Place in Chicago, room S402A.

”The dairy industry continually explores innovative ways to increase demand for naturally nutrient-rich dairy products,” says Thomas P. Gallagher, chief executive officer of the Innovation Center for U.S. Dairy and Dairy Management Inc.^™ (DMI), which manages the national dairy checkoff program on behalf of the nation’s dairy farmers. “That’s why we worked with industry partners to reimagine how dairy is merchandised at retail. After comprehensive testing and research, it’s clear that there is a significant opportunity for the dairy industry and retailers alike to increase dairy department sales by as much as $1 billion over a one-year period.”

In 2006, DMI, The Dannon Company and Kraft Foods formed a coalition to focus on a “shopper-centric” approach that would grow overall retail dairy department sales. The coalition learned that in a reinvented dairy department, shoppers spend more time in the aisle, have a more enjoyable shopping experience, and are more likely to purchase additional items overall.

According to coalition research, customers who include dairy in their purchase spend more time in the store and more money at a substantially faster rate as compared with most shoppers. For example, the average shopper spends 19 minutes in a store and spends $25 on their total purchase; while milk buyers spend 26 minutes in a store and spend $45.20 on their total purchase.

The coalition analyzed 343,000 shopping trips, audited 22,000 retail grocery stores, spoke with 2,500 consumers, and implemented category and total dairy aisle reinvention efforts in more than 1,000 stores.  Results of space optimization as well as category and total dairy reinvention have shown that dairy unit sales can be increased by more than 2 percent.

Shoppers described their experiences in the reinvented dairy department more favorably than before the enhancements. They said they liked how the new department was presented, believed the changes made shopping easier and indicated that the new look created a more welcoming experience.

At the Worldwide Food Expo, Paul Weitzel, managing partner, Willard Bishop, LLC; David Bishop, managing partner, Balvor; and Scott Dissinger, senior vice president, DMI, will discuss benefits of dairy aisle redevelopment, including the opportunity to create differentiation and build sales. Their presentation will offer a sneak preview of some of the best practices and design principles that have shown results in this ongoing initiative.

In addition to Dairy Department Reinvention: Path to Growth and Differentiation, the Innovation Center for U.S. Dairy is speaking on a range of other business-critical topics at Worldwide Food Expo, including Is Your Company Crisis-Ready?; Dairy Products: Health and Wellness in a Package; and International Dairy Market. The Innovation Center for U.S. Dairy also is sponsoring the expo’s Sustainability Pavilion, which will include presentations by dairy industry leaders about how to implement new and sustainable practices that make good business sense.

Dairy2020, the Innovation Center for U.S. Dairy’s interactive booth, will offer processors, manufacturers, suppliers and others in the dairy industry information on cutting costs, growing revenues and reducing greenhouse gas (GHG) emissions. Log on to IDFA.org and USDairy.com for more information.

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Innovation Center for U.S. Dairy provides a forum for the dairy industry to work pre-competitively to address barriers to and opportunities for innovation and sales growth. The Innovation Center aligns the collective resources of the industry to offer consumers nutritious dairy products and ingredients, and promote the health of people, communities, the planet and the industry. The Board of Directors for the Innovation Center represents leaders of more than 30 key U.S. producer organizations, dairy cooperatives, processors, manufacturers, and brands. The Innovation Center is supported and staffed by Dairy Management Inc.^™ For more information, contact innovationcenter@usdairy.com or visit USDairy.com.

Willard Bishop, LLC is a consulting firm working with retail and foodservice companies to solve business problems and identify opportunities to drive profitable growth. For over 30 years, Willard Bishop has helped clients in the United States, Canada, Europe, Asia, and Latin America implement go-to-market strategies that improve both top-line sales and bottom-line profits by going beyond research to develop strategic implications and actionable recommendations for clients. www.willardbishop.com

The Dannon Company is America's founding national yogurt company and continually leverages its expertise to develop and market innovative cultured fresh dairy products in the United States. Headquartered in White Plains, N.Y., Dannon has plants in Minster, Ohio; Fort Worth, Texas; and West Jordan, Utah; and produces approximately 100 different types of flavors, styles and sizes of cultured fresh dairy products. Dannon is a subsidiary of Danone, one of the world’s leading producers of packaged foods and beverages, and Dannon is the top-selling brand of yogurt products worldwide, sold under the names Dannon and Danone. For more information, please visit www.dannon.com.

Kraft Foods (www.kraftfoodscompany.com) makes today delicious in 150 countries around the globe.  Our 100,000 employees work tirelessly to make delicious foods consumers can feel good about.  From American brand icons like Kraft cheeses, dinners and dressings, Maxwell House coffees and Oscar Mayer meats, to global powerhouse brands like Oreo and LU biscuits, Philadelphia cream cheeses, Jacobs and Carte Noire coffees, Tang powdered beverages and Milka, Côte d’Or, Lacta and Toblerone chocolates, our brands deliver millions of smiles every day.  Kraft Foods (NYSE: KFT) is the world’s second largest food company with annual revenues of $42 billion.  The company is a member of the Dow Jones Industrial Average, Standard & Poor’s 500, the Dow Jones Sustainability Index and the Ethibel Sustainability Index.

Balvor LLC is a sales and marketing firm that provides consulting, sales support, and analytic services to retailers, product suppliers, financial analysts and other organizations. Balvor has worked domestically and internationally with several dairy trade groups, including DMI, IDDBA, IDFA and USDEC, helping develop and conduct retail category management workshops, examine emerging shopper trends, build space allocation models, and evaluate in-store testing.

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