Opportunities abound for school milk

Dairy Foods, Feb, 2005

The dairy industry currently has a great opportunity to increase milk sales in schools--for several reasons.

First, educators, health and nutrition professionals, and government officials are all looking to our nation's schools to address the growing childhood obesity issue--in part by making healthier food and beverage choices such as milk more available at school. Further, dairy industry research shows that dairy processors can sell more milk in schools when it is offered to students in plastic packaging.

"Milk is a critical part of children's diets, and is a key part of the solution in creating a healthier school environment," says Grant Prentice, executive v.p. of marketing and business development for Dairy Management Inc.[TM] (DMI). "That said, we all know children will not be lifelong milk drinkers if we offer them a package and product that, according to research and consumption data, they quickly reject."

To help improve childhood nutrition at our nation's schools, DMI launched its "New Look of School Milk" (NLSM) program in 2003 after funding a school milk pilot test that demonstrated that students will drink more milk if it's offered when, where and how they want it.

"The school milk pilot test uncovered a winning combination to increase milk consumption at schools," says Rick Naczi, who heads up DMI's school marketing efforts. That combination included offering ice-cold milk: in multiple flavors: in appealing plastic packaging: eye-catching merchandisers and other milk cooler equipment: and most importantly, in more locations--including the school meal line, a la carte line and in vending machines. Pilot test results showed that, when this formula was applied, milk consumption increased by 37%, milk sales jumped 18%, and secondary school lunch participation increased 5%.

Collaboration is key

DMI's fluid milk marketing strategy aims to address the fundamental issues that hold back consumption growth by expanding existing markets and creating new sales opportunities. DMI offers processors marketing assistance in the form of product formulations, consumer and scientific research, and even joint marketing programs.

"We work with many interested milk processors to bring needed improvements to the marketplace," Prentice says.

Along with processors, schools are a key collaborative player in the move to sell more milk. One prime example is the Denver school district, which worked with Meadow Gold Dairies, Ogden. Utah, to change its school milk program in accordance with the results of the pilot test. Meadow Gold began producing 10-ounce bottles of flavored milk for Denver's middle and high schools. "We've had substantial increases in milk sales--59% in middle schools and 48% in high schools--along with a 3% increase in our middle school lunch participation, in part due to the enhanced milk program," says Leo Lesh, executive director of food and nutrition services for Denver Public Schools.

Lesh adds that, when Denver made the change to NLSM. "it wasn't about the money, it was about the positive effect we knew drinking milk would have on student nutrition. As it turned out, however, it had a positive effect on our profit and loss as well."

Results show that the NLSM program leads to:

* Increased secondary school lunch participation.

* Increased school revenue through improved milk sales from a la carte and vending, along with school meal participation, which helps cover implementation costs.

* Healthier students through increased milk consumption and school lunch participation.

* Higher academic performance and increased school attendance as a result of healthier student nutrition.

An increasing number of schools are switching from the traditional paper, half-pint cartons to easy-to-open, round, resealable milk packaging. At the end of 2004, more than 1,400 schools (representing nearly 1 million students) offered milk in plastic, single-serve bottles. Market analysts estimate that. if the nation's 90,000-plus schools adopted the NLSM program, incremental milk volume could increase by more than 800 million pounds.

NLSM business models show that positive increases in milk sales and school meal participation are sustainable, Naczi says. "Though the NSLM program costs a little more initially, foodservice operators have created real-world business models that recapture those costs. The key is targeting those school districts with milk processors who have the existing plant capacity to offer these enhanced milk products, or who plan to increase their capacity to take advantage of this growing opportunity."

The article was contributed by DMI. For more information about DMI's "New Look of School Milk" program, call 847/ 803-2000, or visit www.nutritionexplorations.org.