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    Dairy Processor News

    Newsline: More Milk Selling at Mass Merchandisers

    January 19, 2004
    Supermarkets remain the dominant channel for milk, responsible for more than three-quarters of sales, according to a recent article in Supermarket News, but alternative formats are stealing share from the more traditional channels.

    Crystal Farms is headed for the arctic. About 600 lbs of its products are anyway. On December 21st an international team led by world renowned polar explorer Will Steger embarked on an expedition; crossing the Canadian Arctic Nunavut region by dogsled. More than 600 lbs of Crystal Farms cheese, butter, bread and juice products were along for the ride.
    Supermarkets remain the dominant channel for milk, responsible for more than three-quarters of sales, according to a recent article in Supermarket News, but alternative formats are stealing share from the more traditional channels.

    From June 2002 to June 2003, supermarkets saw their share of sales drop from 78.6% to 77.4%, according to Information Resources Inc., Chicago. The same data showed mass merchants grew their share, from 12.6% to 13% of sales; convenience stores inched up from 2.5% to 2.6% of sales; and club stores moved up from 3.2% to 4% of sales. The magazine said the main factors driving the shift include convenience, price, and healthy margins for retailers.

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