Dive Brief:
- Arla, a Denmark-based whey ingredients provider, launched a new line of clean-label, dairy-based ingredients to be used by the foodservice business.
- The line of ingredients include cake topping, cooking cream, baking-stable cream cheese, and cheesecake cream cheese.
- The company says these new products are made with dairy proteins, but are higher in proteins and lower in fat, carbohydrates and calories than similar products.
Dive Insight:
As consumers crave more premium dairy products, as well as food items that fit into the better-for-you and clean label trends, Arla's latest launch makes sense. Torben Jenson, a category and application manager for Arla Foods, said it himself as he announced the line of ingredients: "Our new concepts are healthy, convenient and clean-label, which means they are completely on-trend."
Arla started 2016 by projecting an "unpredictable and tough" year. In 2015, the dairy-based company's global revenues fell 3.3%. The dairy industry worldwide has had a difficult time, with farmers getting an estimated 20% less for their milk this year than in 2015, and 40% less than in 2014. According to Rabobank, the total value of dairy sales worldwide has dropped, with the top 20 producers earning 13% less in 2015 than the previous year.
These new ingredients are a potentially lucrative way for Arla — which Rabobank ranks as the world's 7th largest dairy producer — to innovate. They are tailor made for indulgent products, like cheesecake, but the company says they can be further customized with colors, flavors and mixed-in items like nuts or sprinkles. While consumers seek some "healthier" items, dairy indulgences like ice cream have done well. Between the end of May 2015 and this year, Americans spent $6.5 billion on ice cream, an increase of 2.5%.