Back to school; some dairy marketers are learning a new appreciation for school business

Dairy Foods, August, 1990 by Jeff Reiter

School breakfast programs are growing, but not as fast as we would like," says Beverly Lowe, foodservice director for Hampton City Schools, Hampton, Va., and president of the American School Food Service Association for the 1989-90 school year. "Clearly, there is a huge potential for breakfast programs to be offered in every school that offers lunch."

If only for the increased business it could mean for dairy suppliers, Lowe urges the dairy industry to support the promotion of school breakfast programs. An even better reason to lend support, she says, is that studies show children who eat a school breakfast perform better in classes than those who skip the morning meal.

Of course, the added volume from school breakfast programs does not mean dairy suppliers will see improved profits. If anything, margins could get tighter still-the Bush administration is proposing major cutbacks in school feeding subsidies that would put further cost pressure on foodservice operators. If the cuts are approved, dairy distributors could feel the pinch. At

I s might be forced to raise meal prices, which could lower student participation and decrease dairy usage.

On the other hand, in the case of milk processors, volume and profit are sometimes secondary considerations when it comes to the school market. From a public relations perspective, many dairies feel it's only good marketing to be involved with the schools, especially those close to home.

At Matanuska Maid Dairy, Anchorage, Alaska, schools account for about 5 percent of the company's total sales. And while marketing manager Ron Wilde admits the business is only marginally profitable, he's not about to give it up.

"I feel the school business is very important because the kids are drinking our milk and being introduced to our local brand name," he says. This, Wilde believes, could influence their purchase decisions later in life.

Viewed from a longterm marketing standpoint, selling to schools may be worth the trouble after all.