The Nielsen Company

The Nielsen Company

January 16, 2008 10:00 ET

Dairy Products Find Their Way Into Canadian Shopping Carts Nearly 50% of the Time

Nielsen's annual Dairy Case study shows dairy products account for 17% of Canadians' annual grocery spend

MARKHAM, ONTARIO--(Marketwire - Jan. 16, 2008) - The Nielsen Company today announced the release of the 2007 edition of the annual Dairy Case Study. The report provides confirmation that Canadians have a renewed interest in the health benefits dairy products offer, particularly the "Better for You" options. Canadians spent just over $8.5 billion on dairy products in 2007, representing an increase of 6% over the same period in 2006. The average Canadian spent $612 on dairy items throughout 2007.

The 2007 study offers a variety of insights on consumer's attitudes and preferences about dairy products, such as:

- Milk remains the top selling category in the dairy case with sales over $2.2 billion (+6%), followed by prepackaged natural cheese at $1.4 billion (+8%), and yogurt at $966 million (+7%).

- The top three categories combined to account for almost 55% of total Dairy Case sales in 2007.

- The fastest growing category this year is Refrigerated Dips, up 17% over 2006 with $158 million in sales.

- Grocery Banner + Mass Merchandisers is the primary channel where consumers purchase their dairy products, capturing almost 92% of dairy sales.

"Dairy is a staple that has always consistently found its way into Canadian shopping carts, as demonstrated by the fact that Milk is the top category in the grocery store year over year," said Dave Mann, Senior Vice President Marketing and Sales, The Nielsen Company. "The continued focus by consumers on healthier eating has been great news for the dairy case, particularly with the inclusion of probiotic additives, or "friendly" bacteria into yogurt and cheeses. These products have performed well overseas, and are now making their way into the Canadian market as consumers become more aware of their benefits."

"New for the 2007 Dairy Case Study is the inclusion of consumer targeting and segmentation information for a couple of the fastest growing categories, including Vegetable and Chip Dips," said Mann. "By using Spectra's segmentation platform which combines demographic, consumption, media and attitudinal data, clients can focus on the consumer segments most likely to yield a return on investment."

Other areas impacting dairy case sales include managing the shelf effectively, cleanliness and availability, and freshness of products. While Dairy will continue to be a staple, the changing face of the Canadian consumer will require manufacturers and retailers to adjust their products and store formats to meet their needs in this competitive category.

About the Dairy Case Study

The Nielsen Dairy Case Study integrates a variety of Nielsen services including scanning based retail tracking from MarketTrack, consumer data from Homescan and Spectra, and in-store observational information through Store Solutions. National and regional information includes key performance metrics and trends across 32 dairy categories, and helps clients understand market size, key contribution items/categories/segments, fair share of shelf, and consumer targeting opportunities.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com.

Note to Editors: Look for this news release and other Nielsen news on the Internet at http://www.acnielsen.ca.

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