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What have the market implications been since the introduction of single serve, resealable plastic

containers?

Already more than 1,250 schools have switched to single-serving bottles. While that is still a tiny fraction

of the nations schools, it is a significant jump from 2000, when there were none, according to the

National Dairy Council.

The milk industry is also likely to benefit. Americans have been drinking less and less milk since the

1970s; dairy officials hope reversing that trend among children will result in a lifetime of drinking more

milk. There also is potential hidden growth for the $11 billion milk industry. School children consumed

5.3 billion half-pint servings of milk 2002. But many of the new bottles hold 10 ounces or 2 ounces more

than a half-pint. 2002 Dairy Council study found milk consumption increased 18 percent in schools that

tested bottles.

The change to plastic brings schools closer to overall milk packaging trends. In 2001, more than 82

percent of the nations milk was packaged in plastic, up from 15 percent in 1971, according to the U.S.

Department of Agriculture.

REF: http://www.nbcnews.com/id/6762758/ns/us_news-education/t/schools-replacing-milk-cartons-

bottles/#.UjkqjMayA4J

In November 2011, milk sold in single-serve round containers totaled 6.8 million lbs., down 3.6 million

lbs. from November 2009, but 0.9 million lbs. above November 2001.

REF: http://dairybusiness.com/seo/printable.php?table=headlines&id=757

For single-serve milk market, there is no debate as plastic sales soar, bringing smiles at dairy conclave

Test marketing showed that in school milk sales would jump 30 percent when the switch was made to

resalable plastic bottles. But last years results were even better, up 34 percent in schoolswhere the

change was made. And this year the number of schools offering the improved packaging will jump from

1,200 to 3,000, meaning the industry needs more processors to step forward with the product.

REF: http://www.rurdev.usda.gov/rbs/pub/jan05/paper.htm

What has happened to production volumes since their introduction to the marketplace?

The volume of fluid milk products sold in plastic pints increased by more than 325 percent from

November 1997. The market share of plastic half-pints tripled. The single-serve, round (milk

bottle shaped) container likely contributed l a r g e l y to these increases. The market share in

larger plastic sizes also increased; q u a r t s more than doubled, half-gallons jumped to over 12

percent of total sales.

For pint containers, the share sold in plastic increased by 40.6 percentage points to 59.3 percent;

the single-serve, round (milk bottle shaped) container likely contributed largely to this increase.

The plastic share of quarts increased by 13.1 percentage points and for other sizes increased

11.8 percentage points.

This is the first survey in which single-serve; round plastic containers were reported separately. In

November 1999, these containers accounted for 1.6 percent of total fluid milk product sales. On a

regional basis, single-serve round plastic containers ranged from 3.2 percent of total fluid milk

product sales in the Southeast to 0.9 percent in the Western group of orders. Pints accounted for

http://www.nbcnews.com/id/6762758/ns/us_news-education/t/schools-replacing-milk-cartons-bottles/#.UjkqjMayA4Jhttp://www.nbcnews.com/id/6762758/ns/us_news-education/t/schools-replacing-milk-cartons-bottles/#.UjkqjMayA4Jhttp://dairybusiness.com/seo/printable.php?table=headlines&id=757http://www.rurdev.usda.gov/rbs/pub/jan05/paper.htmhttp://www.rurdev.usda.gov/rbs/pub/jan05/paper.htmhttp://dairybusiness.com/seo/printable.php?table=headlines&id=757http://www.nbcnews.com/id/6762758/ns/us_news-education/t/schools-replacing-milk-cartons-bottles/#.UjkqjMayA4Jhttp://www.nbcnews.com/id/6762758/ns/us_news-education/t/schools-replacing-milk-cartons-bottles/#.UjkqjMayA4J

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62 percent of the sales of this type of container, half-pints about 36 percent, and other sizes about

2 percent. Of the total sales of fluid milk products in plastic pints and half-pints, 82 and 65

percent, respectively, were in these single-serves round plastic containers.

Ref: USDA, Packaged Fluid Milk Sales in Federal Milk Order Markets: By Size and Type of Container

and Distribution Method during November 1999

Single-serve, round plastic containers accounted for 1.9 percent of total fluid milk product sales. On a

regional basis, single-serve round containers ranged from 4.5 percent of total fluid milk product sales in

the Southwest to 0.5 percent in the Southeast order. Nearly 25 percent of flavored whole milk sales

were made in these round containers as compared to 0.4 percent of skim milk sales. Pints accounted

for 47 percent of the sales of this type of container, half-pints about 27 percent, and other sizes about

26 percent. Of the total sales of fluid milk products in plastic pints and half-pints, 57 and 49 percent,

respectively, were in these single-serve round plastic containers.

The single-serve, round (milk bottle shaped) container likely contributed largely to the increases in the

pint and other size shares. The plastic share of quarts increased nearly 7 points to 44.0 percentage

points

Ref: USDA, Packaged Fluid Milk Sales in Federal Milk Order Markets: By Size and Type of Container And

Distribution Method During November 2005

What other new marketing and packaging ideas are being evaluated to increase sales of fluid milk

products?

Surprised and encouraged by the huge popularity of single-serve plastic milk containers, the dairy

industry is introducing a variety of more user-friendly containers to regain ground lost to the soft-drink

world.

Some dairies have turned to a 3-liter pitcher-shaped bottle that is easier for children to pour, while

others are trying a variety of new sizes and designs.

Instead, Winder Dairy in mid-May will introduce a clear plastic half-gallon milk container with a new

shape for its wholesale sales. There also will be a similar quart container for its home delivery and

wholesale trade.

Winder is continuing to use its "earth-friendly" hard plastic bottles that are delivered to 25,000 home

delivery customers. These are returnable and can be washed, sanitized and refilled with milk more than

100 times before being recycled.

REF: http://www.deseretnews.com/article/806754/Dairies-reshaping-containers.html?pg=all

Milks use of single-serve plastic containers and of new flavors are likely to become keys to innovation

for branding, image improvement and increased marketing channels, according to a BeverageMarketing

Corporation report.

REF: http://www.agmrc.org/commodities__products/livestock/dairy/organic-dairy-profile/

The only real change that milk has seen is going from glass and paper to plastic,. The industry needs to

look at all marketing possibilities: size, flavor, container, a protein additive, a non refrigerated drink,

the list is endless.Results showed that consumers were four times more likely to pick a label with any

http://www.deseretnews.com/article/806754/Dairies-reshaping-containers.html?pg=allhttp://www.agmrc.org/commodities__products/livestock/dairy/organic-dairy-profile/http://www.agmrc.org/commodities__products/livestock/dairy/organic-dairy-profile/http://www.deseretnews.com/article/806754/Dairies-reshaping-containers.html?pg=all

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type of claim versus no claim at all, and 100% Fresh was the single variable that had the greatest

impact on the likelihood to buy milk.

Bob Schupper, dairy category manager for AHOLD USA the owner of Giant Food Stores, LLC in Carlisle,

recognizes that the fluid milk packaging has not changed over the years and there is a lot of validity to

his (Stanton) presentation. Over the years, he has seen the milk label become more cluttered but not

with information that is appealing to the consumer

They attribute this to the large product selection that they make available to consumers. Presentation is

also a priority; cleanliness, organization, and convenience are factors that help them stabilize milk sales

The label is one of the most common and effective marketing tools, and a consensus of the survey is

that the dairy industry should capitalize on the opportunity to design a more attractive package for its

premier product. Failure to use persuasive advertising on labels is like entering a boxing match with

one arm tied behind your back, says Stanton. All other major beverage companies are using their labels

and packaging to communicate to the consumer and influence their choices

Ref: PDMP.org Fluid milk sales are influenced by labeling and packaging Farmshine, Friday, February

22, 2013. www.pdmp.org/sites/default/files/Feb22.13%20Farmshine(web)_0.pdf