Source: Dairy Management Inc. (DMI)
Dairy Management Inc. (DMI) President and CEO Barbara O’Brien outlined “now, next, and future” checkoff strategies to more than 800 dairy farmers and industry representatives at the 2024 joint annual meeting of the United Dairy Industry Association, National Dairy Promotion and Research Board and National Milk Producers Federation held in Phoenix, Oct. 21-23.
O’Brien began by sharing that consumer retail dollar spending and volume sales for dairy are increasing – up 3% and 2%, respectively, year to date – and all categories are experiencing volume growth compared to last year.
“Make no mistake – we are experiencing what I call a dairy renaissance,” O’Brien said. “You’ve seen the headlines and heard the discussions on social media – it is clear the narrative is shifting, and this is our time.”
O’Brien noted that data indicates the millennial generation (ages 28-43) is primarily driving dollar and volume growth based on newfound positive perceptions of dairy.
“Consumers have found their truth; they want real food, and they are voting with their dollars,” O’Brien said. “People are recognizing the true value of the nutritious products farmers produce.”
The now, next and future strategies are occurring simultaneously through the checkoff, which O’Brien described as allowing the organization to maintain its long-term vision while responding quickly to immediate needs. “It’s about being strategically patient but tactically urgent, ensuring that farmers’ investments are working harder,” she said.
O’Brien provided updates and successes in each area.
Now – Sales Environment, Market Demands, Consumer Trends
O’Brien mentioned that science-backed dairy research is making strides with thought leaders from organizations such as the National Medical Association, National Hispanic Medical Association and the American Academy of Pediatrics, who hold credibility with patients.
Partnerships with social media influencers also are driving the dairy conversation; O’Brien cited 10 million dairy-centric social media posts year to date and 99,000 recipes featuring dairy.
The checkoff’s longstanding partnership model of working with and through leaders, including those at foodservice, continues to deliver results. Domino’s CEO Russell Weiner addressed meeting attendees and outlined successes that have led to the chain’s increased use of cheese across menu items. Recent innovations, supported by the checkoff, include the New York Style Pizza and five-cheese mac and cheese offerings.
Domino’s also continues to find success with its Smart Slice school lunch program, which is increasing school lunch cheese use, and the chain is launching delicious cheesy menu items internationally, including its Domino’s Volcano pizza – featuring mozzarella cheese on top and a cheddar cheese sauce in the middle – finding enthusiastic consumer interest in Japan.
Weiner said the company has doubled its cheese use since the partnership began in 2008.
“It’s not just a Domino’s success story; it’s a success story of our partnership with dairy farmers,” Weiner said. “When DMI came to us, it coincided with Domino’s turnaround. There was a commitment to improve the food and grow the category, and we have achieved just that.”
Additionally, an e-commerce strategy conducted by DMI with 14 state and regional checkoff organizations included campaigns with Instacart, Walmart and Dollar General. The content highlighted dairy’s affordability, versatility, and nutritional benefits, with every dollar invested by the checkoff yielding a return of $15.60 in dairy sales.
And a partnership with General Mills resulted in the introduction of Yoplait Protein, which has brought new buyers to the category and increased purchases in the first half of the year, which is a testament to yogurt’s strong positioning as people seek more health and wellness solutions.
Next – Laying Groundwork for 2025, Examining Evolving Strategies
O’Brien said the strategies and programs of the 2025 Unified Plan will be built on a foundation of science and innovation to foster future growth.
“As you’ve seen over the past couple of years, we’ll continue to deepen our investment in science,” O’Brien said. “It’s critical for our category, and if the checkoff doesn’t invest, no one will.”
The checkoff will engage in discovery research in areas of interest to consumers, including women’s health, mental health, weight management, bioactives and next generation fermentation technologies.
O’Brien emphasized the checkoff will serve as a pre-competitive consultant, providing scientific knowledge and consumer insights to inspire a broader range of supply chain partners.
DMI is also refining its reputation strategy, with O’Brien saying the checkoff will focus on fewer, larger in-market executions aimed at thought leaders, customers and consumers centered around content priorities, such as:
- Growth, performance, and endurance
- Gut health
- First 1,000 days of life (from conception to a child’s second birthday)
- Environmental progress with dairy farmers of varying sizes and geographies
O’Brien added the checkoff has broadened its youth strategy, recognizing the need for sustained engagement in the dairy category. This begins with the first 1,000 days and continues through various stages of a child’s next 18 years.
“We’re focusing on touchpoints in schools and at home, in-store and online, including learning and social platforms like YouTube and TikTok, gaming, and more,” O’Brien said. “These ‘next’ initiatives are designed to build on our successes and position us for an even stronger future.”
Future – Preparing the Checkoff for Generations to Come
As she considers the future of dairy and the checkoff program, O’Brien is driven by a single thought: if U.S. dairy were a company, what are the most important actions for DMI and the checkoff enterprise? She identified three key elements:
- Have a vision for dairy’s future
- Build a foundation with world-class science
- Cultivate relationships and credibility across the supply chain to drive change
O’Brien said this begins with enhancing the checkoff’s foundation of science. DMI created a 10-year roadmap that aligns with an analysis of consumer health and wellness needs.
“People are increasingly viewing food as medicine, and we see a growing percentage acting on healthier eating behaviors,” O’Brien said. “Dairy is well positioned to capture a significant share of the billions in sales opportunities with the right products, forms, formats and packaging, delivering the right benefits. This is our opportunity to win, and we’re building the pipeline to redefine dairy’s role as a health and wellness solution in people’s lives.”
O’Brien concluded her remarks by calling dairy farmers the “drivers of this change” for the checkoff’s strategy.
“Your innovation on the farm, commitment to stewardship, and passion for feeding the world make our checkoff initiatives possible,” she said. “The challenges we face are significant, but so are our opportunities. With your continued support and the power of our unified approach, there is no limit to what we can achieve.”
For more information about the dairy checkoff, visit www.dairycheckoff.com.
