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Other Dairy in the US

United States coffee whiteners market: Nestlé USA Inc a key player

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2014-03-12 19:59:02 - Other Dairy in the US - a new market research report on

Nestlé USA Inc leads other dairy in 2012 with an 18% value share, up from 17% in 2011. The company is a key player in the United States coffee whiteners market and condensed/evaporated milk. Coffee-mate was the first non-dairy powdered creamer, introduced in 1961. Since then, the company has launched Coffee-mate Liquid in 1989, followed by flavoured varieties in the 1990s. In 2010, the company benefited from consumers drinking more coffee at home, as well as cooking more at home. Sales of Coffee-mate were aided by the companys continuing use of its Add Your Flavor marketing campaign, which notes that Coffee-mate is available in 25 flavours to allow consumers to customise their coffee. The company also benefited from the June



2011 launch of Coffee-mate Natural Bliss, a coffee whitener touted as containing just four ingredients – milk, cream, sugar and natural flavourings. The company added a low-fat vanilla version of Coffee-mate Natural Bliss in 2012.

After strong growth between 2008 and 2011, unit prices of other dairy products have declined in 2012, leading to flat overall sales. The drop in price can be attributed to an increase in cows milk production in Australia, Asia and South America. Fresh milk prices had risen in 2011 due to a combination of rising global demand for milk and higher corn and soybean feed prices.

The improvement in the US economy is likely to hurt sales of other dairy products over the forecast period. With unemployment on the decline and consumer confidence on the increase, consumers are likely to return to eating away from home. Sales of other dairy products are predicted to grow by 3% in constant value terms over the forecast period, which will compare favourably with a flat review period performance. In retail volume terms, growth will be slower over the forecast period than the review period. As consumers drink less coffee at home and more in coffee shops, retail sales of coffee whiteners are likely to slow. Retail volume sales of coffee whiteners are expected to grow by 14% over 2012-2017 after growing by 37% over 2007-2012. Similarly, sales of condensed/evaporated milk are expected to decline by 8% in retail volume terms over 2012-2017 after growing by 8% over the review period as US consumers do less baking and cooking at home.

Key Headlines

- Value sales of other dairy products remain largely flat at around US$7.8 billion in 2012
- Drop in unit price leads to the first value sales decline of the review period, albeit marginal
- Coffee whiteners set to be the best performing category in 2012 with current value growth of 7%
- Unit prices decline in 2012 as raw milk prices fall
- Nestlé USA Inc leads other dairy in 2012 with an 18% share of value sales
- Constant value sales of other dairy products expected to grow by 3% over the forecast period

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