Yogurt Sales Sour as Options Proliferate

This Wall Street Journal article explains the changes that have been happening in the yogurt market. Initially, traditional yogurts were very successful, however, sales have been decreasing as they are being replaced by healthier choices. The brands that have been in the market for years are now suffering loss because they no longer lead the market and now have to compete with store-brand versions and many more alternatives. This phenomenon has also left many customers confused because there are too many options that make them feel overwhelmed when choosing.

The brand Chobani is the pioneer of this movement since it created a more natural, healthy and aesthetic product that became very successful and was even able to attract the traditional yogurt’s customers. As a result, many other companies followed the same tendency of offering a healthier product. Some other variations have emerged as well, such as non-diary and plant-based yogurts like almond and coconut milk based yogurts and Icelandic “Skyr” yogurts, which has a thicker texture and less sugar. Therefore, even though traditional yogurt sales are decreasing exponentially, innovative versions are experiencing growth in their sales.

          The traditional companies like General Mills (producer of Yoplait) and Danone have been working to develop a new product with a different branding, an example is Oui, the new glass-jar French yogurt introduced by Yoplait. Also, they have been rebranding the high-sugar ones so they can market those kinds of yogurt as dessert, as Danone did with their full-fat Oikos yogurt.

To conclude, this article shows how the traditional yogurt is at the end of the product life cycle, on the sales decline phase while the newer versions are on the market growth phase. As a result, companies are developing strategies to develop new products based on the interests of the consumers. It also highlights the power of substitutes as some consumers prefer to buy the cheaper store-brand versions. Promotion is also very important because innovative brands have been able to turn long-term traditional yogurt consumers into their clients by using a refreshed and healthier branding that matches their target market and takes advantage of the new organic/healthier trend that is happening right now.

Link to article: https://www.wsj.com/articles/yogurt-sales-sour-as-options-proliferate-11554811200?mod=searchresults&page=1&pos=9

By: Adriana Chacon