Welcome to the dairy case, a round-up of what’s new in products, companies and marketing. In this issue: Rainbow Acres Farm, Cornell University, J & J Snack Foods, Organic Trade Association, Innova Market Insights, Chobani, Red Mango, Dean Foods, Dannon, Friendly’s, Rising Sun Farms, Lovin’ Scoopful, Super Store Industries, Hiland Dairy Foods Co. and more.

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

Welcome to the dairy case, a round-up of what's new in products, companies and marketing.

In The News

The Justice Department, at the request of the U.S. Food and Drug Administration, has filed a complaint for permanent injunction against Daniel L. Allgyer, owner of the Rainbow Acres Farm, Kinzers, Pa., for distributing unpasteurized (or "raw") milk for human consumption in interstate commerce. The complaint, filed on April 19, 2011, in U.S. District Court for the Eastern District of Pennsylvania, also alleges that Allgyer violated federal law by misbranding the "raw" milk containers by failing to provide the label information required by law. Defendant Allgyer was served with the complaint earlier today. Raw milk can contain a wide variety of harmful bacteria, including Listeria, E.coli, Salmonella, Campylobacter, Yersinia, and Brucella.

The FDA issued a Warning Letter to Allgyer on April 20, 2010, informing him of the violations and stating that regulatory action might be taken. The farm has continued to operate in violation of federal law. If the court grants an injunction, Allgyer may be prohibited from distributing unpasteurized milk and milk products for human consumption in interstate commerce.

As food suppliers attempt to meet the growing demand for local products, a new study finds it’s not always economically or environmentally viable for multi-product industries to focus heavily on local sales.

“The dairy sector is an excellent example for examining the economic consequences of increased localization of food supply chains,” said Miguel Gomez, Cornell University professor of applied economics and management, and co-lead author of “Cost of Localizing a Mutli-Product Food Supply Chain: Dairy in the United States,” which appears in the April 2011 edition of the journal Food Policy.

The average distance traveled for all U.S. dairy products was about 320 miles from farm to market. Increased localization reduces assembly costs while increasing processing and distribution costs, said Gomez. The study provides insights to the U.S. dairy industry, which in 2008 planned to reduce its greenhouse gas emissions 25 percent by 2025, in part through supply chain reductions.

The April 2011 edition of Food Policy can be viewed at: http://www.sciencedirect.com/science/journal/03069192.

On May 3, eight of the world’s leading foundations will launch a major new initiative designed to impact food and agriculture policies on a global scale. This initiative is funded by Ford Foundation, Bill & Melinda Gates Foundation, The William & Flora Hewlett Foundation, The David and Lucile Packard Foundation, W.K. Kellogg Foundation, The McKnight Foundation, Rockefeller Foundation and The Walton Family Foundation.

Participating in the press conference to announce how the initiative will engage on food and agriculture policy are: Dan Glickman, former USDA Secretary under President Bill Clinton; Gary Hirshberg, President of Stonyfield Farm; Jim Moseley, former USDA deputy secretary under President George W. Bush; and Emmy Simmons, former assistant administrator for Economic Growth, Agriculture, and Trade at U.S. AID.

J & J Snack Foods Corp. (Icee, Slush Puppie and Arctic Blast frozen beverages, Whole Fruit sorbet and Fruit-a-Freeze frozen fruit bars) entered into an agreement to acquire the frozen handheld business of ConAgra Foods. The business sells dough enrobed products sold under the Patio, Hand Fulls, Holly Ridge Bakery, Villa Taliano, Top Picks and private label brands with manufacturing facilities in Holly Ridge, North Carolina and Weston, Oregon.


The organic industry grew at a rate of nearly 8% in 2010, with some sectors showing 30% growth, according to the Organic Trade Association’s 2011 Organic Industry Survey. “While total U.S. food sales grew by less than 1% in 2010, the organic food industry grew by 7.7%,” said Christine Bushway, OTA’s CEO and Executive Director. Organic dairy, the second-largest category, experienced 9% growth and captured nearly 6% of the total U.S. market for dairy products.

Innova Market Insights (www.innovadatabase.com) reported a 4% decline in the number of “active health” launches tracked in Western Europe in 2010 [e.g. “functional” and “fortified” products], compared to 2009, despite 25% growth in the number of “passive health” [i.e. “food minus”] launches tracked. The market researcher also noted 36% growth in the number of products with a health positioning tracked in Western Europe over this period that featured the word “proven.”

The company identified 10 emerging trends that will impact new product activity in the nutritionals and functional foods space and will present them at next month’s Vitafoods Europe in Geneva (May 10-12). The 10 trends are:

  1. “Proven” is the New Buzzword
  2. Return to Softer Claims
  3. New Relaxation Paradigm
  4. Fruit & Veg Revival
  5. Joint Health Boosters
  6. Staying Immune
  7. Alternative Protein Sources
  8. Healthy Mind, Healthy Body
  9. Fiber Triumphs on Gut Feeling
  10. Out of the Box Weight Loss

Dairy Foods presented the International Dairy Trends webinar. Presenters were Donna Berry, the product development editor for the magazine; Olivia Sant’Angelo, Innova Marketing Insights; and Carrie Schroeder, Fonterra. View it anytime, on-demand.


Agro Farma’s Chobani is the leading brand in the yogurt category in the U.S., surpassing Yoplait Light, Yoplait Original, Dannon Light & Fit and Dannon Activia, according to SymphonyIRI Group, a Chicago-based market research firm. "This is a very exciting moment for us. I'm so proud of how far we've come since Chobani first hit store shelves three years ago and the people on our team who made it happen," said Hamdi Ulukaya, CEO and Founder of Agro Farma.

Red Mango, a retailer of all-natural probiotic frozen yogurt and fresh fruit smoothies, introduced a new frozen yogurt flavor, Raspberry Cheesecake. The recipe can 80 calories per 1/2 cup serving. Raspberry Cheesecake is gluten free, kosher and fortified with natural probiotics. Red Mango, based in Dallas, opened its first U.S. store in July 2007 in Los Angeles, and now has more than 115 store openings in 25 states.


Dean Foods Co. seeks a buyer for its milk processing, selling, marketing and distribution business located in Waukesha, Wis. Dean agreed to sell the plant and related business as part of the March 29, 2011, settlement agreement reached with the U.S. Department of Justice and the States of Wisconsin, Illinois and Michigan. The divestiture includes the 170,000-square-foot fluid dairy processing facility and equipment, the Golden Guernsey and La Vaca Bonita brands, and other related assets. Contact Steve Schultz, Vice President of Corporate Development at Dean Foods, at 214-721-1414.

Super Store Industries (Stockton, Calif.), Hiland Dairy Foods Co. (Fort Smith, Ark.) and Hiland Dairy Foods Co. (Springfield, Mo.) took the top Quality Chekd honors in dairy excellence, plant performance and marketing at the 2011 QCS Leadership Conference. “Our members understand and appreciate that their success depends to a great extent on the commitment and quality of their people,” said Peter Horvath, president of QCS Purchasing, Quality Chekd Dairies and SECO.

Lovin’ Scoopful,
a premium ice cream company founded by Maria Shriver, Tim Shriver and partners to benefit nonprofits that support those with intellectual challenges, has created the Lovin’ Compassion Award to recognize young people who are involved in programs that foster respect, inclusion and a true personal connection for people with differences. Award recipients will be selected from students age 8 to 15 who are involved with Special Olympics programs such as Unified Sports, the Spread the Word to End the Word campaign, Young Athletes, Get Into It and Project UNIFY, as well as Best Buddies and other organizations that are designed to create more accepting communities. Make nominations online at www.LovinAward.com.


Rising Sun Farms, a maker of dairy-based dips and desserts, will donate 10% of May's profits to the Celiac Disease Foundation (CDF) in support of Celiac Awareness Month this May. The CDF is a non-profit organization dedicated to providing services and support regarding celiac disease through programs of awareness, education, advocacy and research.
The Dannon Co. launched a campaign called Live Your Active Culture to support and motivate families in California to enjoy a balanced diet and find fun, physically active ways to bring everyone together. The campaign consists of five key components: encouraging families to take a pledge to make healthy food choices and include physical activity; a partnership with soccer legend Mia Hamm; a partnership with and donation to the California State Parks Foundation (CSPF); a Dannon mobile tour; and an ongoing, interactive program that provides families with support and rewards for making healthy choices. See dannon.com/liveyouractiveculture for more information.
Friendly Ice Cream Corp. said 'Cones for Kids' campaign raised more than $675,000 for Easter Seals Camp Friendly's. Friendly's has raised more than $27 million for Easter Seals since it began the 'Cones for Kids' campaign in 1981. The funds will benefit 30 camps.

The National Frozen & Refrigerated Foods Association has become a partner with the Healthy Weight Commitment Foundation to fight the growing concern of obesity among Americans, especially children. Many of NFRA’s retailer and manufacturer members are also supporters of HWCF allowing the frozen and refrigerated foods industry to present a unified voice to consumers that promotes healthy, balanced lifestyles.

The Healthy Weight Commitment Foundation is a first-of-its kind coalition that brings together over 150 retailers, food and beverage manufacturers, sporting goods and insurance companies, restaurants, a professional sports association, trade associations, NGOs and the Army. The Foundation focuses on activities in the schools, the workplace and the marketplace to promote healthy weight among Americans by balancing the energy they consume with the energy they expend through physical activity.

The Dairy Calendar

May 10-11. IDFA Dairy Cost Accounting Workshop, Rosemont, Ill. http://www.idfa.org/events--trade-show/interactive-event-calendar/details/96/

May 11-13. SIAL Canada 2011 at the Metro Toronto Convention Center. http://tinyurl.com/4ro5djo

May 18-20. SIAL China 2011 at the Shanghai New International Exhibition Center. http://tinyurl.com/4ro5djo

June 7-9. Global Dairy Congress, St. Petersburg, Russia. http://tinyurl.com/69sd5dz

Sept. 19-21. 2011 International Dairy Show, Georgia World Congress Center, Atlanta.

Oct. 18-21. Cibus Tec, the International Exhibition on the Food Processing and Packaging in Parma, Italy. www.cibustec.it.