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It's been reinvesting in Oikos Triple Zero, which contains zero fat, zero percent added sugars and no artificial sweeteners. The rebrand and reformulation is the third step in Danone's plan to bolster the Oikos brand as part of its broader strategy to revive yogurt demand. Now, however, consumers are more mobile as states roll back restrictions, and many employers are preparing to call back their workforce to the office, if they haven't already. During the pandemic, those occasions largely disappeared but were replaced by breakfast, as many consumers worked remotely and began making their own breakfasts for the first time in years. Grant said that a "good portion" of yogurt consumption comes from consumers who take their yogurt cups from home while they're on the go. By July, it will be available nationwide, with a big marketing push from Danone.Īnd the timing is no coincidence either. Oikos blended yogurt started hitting grocery store shelves in June. The new packaging features a white background with bold lettering. It also ditched the fruit at the bottom in favor of blending it throughout the yogurt. Through several rounds of consumer feedback, Danone landed on a reformulation of Oikos blended nonfat yogurt with 50% more fruit and a creamier taste. "Greek, while it's been fairly consistent, has not really been one of the real growth engines in yogurt, at least not in the last few years, and it hasn't made it, from what we saw, with enough excitement from millennial consumers," Grant said. Two years prior, Greek yogurt sales had fallen 7.4% in the same timespan. retail sales of Greek yogurt were up 4.6%, according to Nielsen. However, Greek yogurt, which is the largest segment of the yogurt category, has seen much slower growth, although sales have risen due to the pandemic. Danone sells dairy-free yogurts under its Silk brand. yogurt consumer is mostly due to its success in the wellness category, with its probiotic yogurt Activia, and the plant-based segment, which is far and away the fastest growing part of yogurt right now. business.ĭanone's strong grip on the U.S. North America has become an increasingly important part of Danone's overall business after the French company bought WhiteWave in 2017, roughly doubling its U.S.
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Grant took the reins at the division last year after serving as the head of Coca-Cola's non-carbonated beverages business unit. It did see some acceleration during the pandemic, sort of mid-single digit growth rates, but I think it's fair to say that it did not accelerate to the degree that some of our other segments did," said Shane Grant, chief executive of Danone North America. "The category itself, pre-pandemic, has been relatively flat overall for a number of years.