Welcome to Jim Carper's Dairy Case, a look at the new dairy products, companies and marketing efforts making the news.

Welcome to a double issue of the Dairy Case, including news from the week beginning July 11. I didn’t update the blog last week because of travel. 

Dean Foods settles with Dairy Farmers of America

Southeast Dairy Farmers announced a partial settlement in their class action lawsuit against Dean Foods, Dairy Farmers of America (DFA) and others.  Dean Foods, one of the principal defendants in the case, agreed to a $140 million settlement.

"We have reached a settlement with Dean Foods in the Southeast Dairy Farmers antitrust case filed on behalf of approximately 7,200 dairy farmers in the southeast," said Robert G. Abrams of Baker Hostetler, lead attorney for the plaintiffs.

"This is a very positive and successful resolution.  We feel the settlement amount of $140 million speaks to Dean's past activities in the southeast and the impact those activities had on the dairy farmers," Abrams continued.  "Significantly, in addition, the settlement also reflects action that Dean has taken toward restoring a more competitive market for southeast dairy producers."  

The case was originally filed in July of 2007 against Dean Foods, the largest milk processor in the country, and Dairy Farmers of America, the largest dairy cooperative in the country, and others.

"This is a significant, gratifying and hard-fought victory for the dairy farmers of the southeast, but the lawsuit is far from over.  The trial against DFA and the other defendants is scheduled to begin August 16, 2011 in Greeneville, Tennessee," added Abrams.

"The case is continuing against the remaining defendants, Dairy Farmers of America, Dairy Marketing Services, Southern Marketing Agency, National Dairy Holdings and two individuals," explained Abrams. "Still at issue are charges that the remaining defendants conspired with each other and Dean Foods to stop competing for the purchase of raw Grade A milk from farmers and that, as a result, farmers were paid less for their milk."

DAIRY FOODS ON THE MARKET

Stonyfield Farm launched an Organic Omega-3 Milk. A 240 ml serving provides 50 mg of Omega-3 EPA/DHA. Ocean Nutrition Canada is the supplier of the MEG-3 brand Omega-3 EPA/DHA ingredients.

Dairy foods are represented on Virgin America airline’s new seasonal summer menus. First Class Breakfast  selections include: Fruit and Cheese Plate featuring Swiss and cheddar cheese wedges; a Fruit Plate with Egg and Chive Biscuit, including Greek-style yogurt and low fat milk; a Roasted Vegetable Omelet made with feta cheese; Fresh Fruit, Greek yogurt and Granola: and Breakfast Tapas, including  cottage cheese with grapes and strawberries, and  granola with milk. Main cabin selections include a variety of sandwiches made with cheese.

Dean Foods introduced TruMoo, a new chocolate milk made with 10-15% fewer calories, 15-20% less sugar, and no high fructose corn syrup. Together with its local and regional family of dairies across the country, the company announced the debut of TruMoo for schools nationally from Nashville, the site of the School Nutrition Association (SNA) annual conference.

"We recognize that school nutrition directors need a solution. On one hand, chocolate milk is preferred by children and provides important nutrients that are hard to replace elsewhere on cafeteria trays. On the other hand, we understand the concerns about added sugars," said Andrea Carrothers, a registered dietitian and Nutrition Communications Manager for Dean Foods. "Over half the sugar in TruMoo is lactose, the same natural sugar found in all milk." Dean Foods successfully reduced up to 6 grams of sugar, or 1.5 teaspoons, per serving compared to its previous varieties nationally. TruMoo contains 10 grams of added sugar, compared with up to 28 grams in soft drinks and other sweetened beverages.

MARKETING CAMPAIGNS

Rita's Italian Ice raises funds for ALSF

Rita's Italian Ice announced the results of its sixth annual partnership with Alex's Lemonade Stand Foundation (ALSF) which raised a total of $545,000 through in-store paper lemon sales to further pediatric cancer research. From June 1 through June 30, more than 550 Rita's locations asked Guests to donate $1 for a paper lemon to raise money for the charity. Guests had the option to Text-To-Donate a one-time $5 donation. The Franchise Partner with the greatest contribution was the Boyertown store, which raised $20,105.

Fazoli gives away Italian ices

This week, those who stopped at any participating Fazoli's restaurant and provided the name of an American city with an Italian name, received a free Italian lemon ice.  Two new flavors are Pomegranate Passion Fruit and Orange Italian Cream.  The giveaway was part of Fazoli's Tour of Taste promotion, where the flavors of Rome, Tuscany, Campania, Naples and Sicily are being featured through five new entrees.  There is also a chance to win a trip for two to Italy and other in the Tour of Taste Sweepstakes, which can be entered by visiting participating restaurant locations.  Sweepstakes ends July 31, 2011.

Adult Chocolate Milk company in JV with Deutsch

W.J. Deutsch & Sons, Ltd. and Adult Beverage Company (ABC), creator of Adult Chocolate Milk formed a joint venture and become equity partners in the new entity, Adult Beverage Co., LLC. Adult Chocolate Milk is a proprietary blend of premium ingredients made with vodka.  Adult Chocolate Milk is available at local liquor stores and major retailers throughout the United States including select Costco, Kroger and Sam's Clubs.  .

WASHINGTON NEWS

The quarterly Interstate Milk Shippers List  is online at the FDA.gov website.

Raw milk recall in South Carolina

The FDA warned consumers not to drink raw milk from Tucker Adkins Dairy of York, S.C. Three confirmed cases and five probable cases of campylobacteriosis in North Carolina are associated with raw milk from Tucker Adkins Dairy. Campylobacter is one of the most common causes of diarrheal illness in the United States. Although retail sale of raw milk is legal in South Carolina, it is illegal to distribute raw milk in final package form for direct human consumption in interstate commerce. Retail sale of raw milk for human consumption is also illegal in North Carolina.

IDFA dislikes proposal

IDFA President and CEO Connie Tipton responded to draft legislation related to dairy policy by Rep. Collin Peterson, ranking member of the House Agriculture Committee.

"We are disappointed that Rep. Collin Peterson is circulating draft legislation that clearly would take the dairy industry in the wrong direction. Instead of encouraging job growth and reducing regulation on an already overregulated industry, the discussion draft would impose new and intrusive government mandates on dairy markets at the cost of a growing dairy export business and the jobs that have come with it.

"The centerpiece of the discussion draft is a new mandatory program that will impact every dairy producer and processor in our country. This program, called the Dairy Market Stabilization Program, is designed to limit U.S. milk production by collecting taxes from dairy farmers when farm milk prices are low. Our estimates show that nearly $400 million would have been assessed against dairy farmers had this program been in effect in 2009. According to Rep. Peterson's bill, half of this new dairy farmer assessment will be retained by the federal government to offset other spending or reduce the deficit.

"Because 'growth management' government programs manipulate farm milk prices to be above world market prices, the stabilization program will negatively impact the U.S. dairy industry's ability to compete for new and emerging markets. Dairy exports will be hurt and imports will be encouraged. Studies of the program have predicted that thousands of U.S. jobs could be lost as a result.

"At a time when the world needs food and is demanding more dairy products, it makes little sense for our government to impose limits on milk production. In addition, higher milk prices will mean that our federal feeding and nutrition programs will have their limited and stressed budgets stretched even further. The same is true for millions of families with children who are struggling economically. Higher prices for dairy products will encourage substitution of less healthy or nutritious food.

"In addition, the discussion draft suggests changes to the Federal Milk Marketing Order system. This is one place where the explanation of the draft does not match the actual draft. For example, the explanation claims that the goal is to simplify the system yet the bill's order reform section is more than 60 pages long. The explanatory text also claims that the new system will remove 'formula pricing' and reduces the classes of milk from four to two -- yet it keeps formula pricing for plants that are owned primarily by co-ops and effectively retains the current four classes of milk.  

"We appreciate Rep. Peterson's work on this issue and agree that this could be a turning point in changing our dairy policies. However, the problem isn't too little regulation – it's too much. The solution is not to get government more involved in our markets, but to let our industry grow and produce jobs."

FOOD TRENDS

Summer Fancy Food Show Finds 5 Food Trends

The top five food trends for 2011 have been picked by a panel of trendspotters at the 57th Summer Fancy Food Show in Washington, D.C. The trends are:

Booze-Infused Foods

- Chili Lime Tequila Tortilla Brittle, Anette’s Chocolates

- Happy Goat Scotch Caramel Sauce, Happy Goat Caramels

- Roasted Peach Whiskey Sauce, Stonewall Kitchen

Give it a Try Kits

- Grow Your Own Mushroom Garden, Back to the Roots

- Mozzarella Cheese Making Kit, Roaring Brook Dairy

- Warm Belgian Chocolate Soufflé Kit, My Cup of Cake

Popped Food

- Black Truffle & White Cheddar Popcorn, 479 Degrees Popcorn

- Bourbon Infused All Natural Popcorn, Metropolitan Bakery

- Air-Popped Sorghum Grain, Mini Pops

Japanese Inspired Eats

- Yuzu Gummy Pandas, Bissinger’s Handcrafted Chocolatier

- Tonton Hibachi Japanese Steak and Barbecue Sauce with Sake, Argo Century, Inc.

- Matcha and Sencha Teas, Rishi Tea

Cherries

- Bada Bing Cherries, Tillen Farms

- Spiced Sour Cherry Spread, The Gracious Gourmet

- CocoNova Cherry Cacao, Honest Tea

Other trends identified at the Summer Fancy Food Show include coconut in food and beverages, salts from around the globe and innovative dairy products such as goat milk yogurt. 

The trendspotters were: Kara Nielsen, The Center for Culinary Development, Rachel Mount, O, The Oprah Magazine; Denise Purcell, Specialty Food Media/foodspring.com; Joe Yonan, The Washington Post; Nancy Wall Hopkins, Better Homes & Gardens; Nycci Nellis, The List Are You On It, Foodie and the Beast Radio; Bonnie Benwick, The Washington Post; Miri Rotkovitz, About.com; Joan Nathan; author and contributor to The New York Times; Diane Welland, food and nutrition writer, Relish, Clean Eating, and other publications

RESEARCH AND THE CALENDAR

RESEARCH

The Dairy Research Institute says the results of two new studies contribute to the growing body of research demonstrating that adequate dairy consumption as a part of a nutrient-rich, balanced diet may help maintain metabolic health and reduce the risk of type 2 diabetes. With approximately one-third of American adults meeting the criteria for metabolic syndrome, there is a growing need to address this health issue.1 Metabolic syndrome is a condition characterized by the presence of at least three metabolic conditions, including central obesity, high blood pressure and impaired glucose or lipid metabolism. These metabolic abnormalities, as well as enhanced inflammatory and oxidative stress, significantly increase the risk of cardiovascular disease and type 2 diabetes. Read the studies here and here.

CALENDAR

Pasteurizer Operators Workshop, Nov. 1 to 3

Penn State University, University Park, Pa.

The course is conducted by the Department of Food Science at Penn State in cooperation with the Pennsylvania Department of Agriculture and speakers from equipment and supply companies. This three-day program includes hands-on activities, discussions, and lectures on regulations, cleaning and sanitation, pasteurization, instrumentation, and other operational procedures in milk plants. Time will be spent in Penn State's University Creamery using the latest short-time system available to see what occurs and to learn why.

Kosherfest, Nov. 8 to 9

Meadowlands Exposition Center in Secaucus, NJ

Kosherfest is the world’s largest kosher food, foodservice, beverage, wine and spirits trade show, and now in its 23rd year.  It is produced by Diversified Business Communications (www.divcom.com) and co-produced by Menachem Lubinsky, founder of Kosherfest and CEO of LUBICOM (www.lubicom.com), a full service marketing company.

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