Flavoured Milk Case Study

2446 Words 10 Pages
Register to read the introduction… The fortunes of the industry have been boosted in recent times by the café culture (Dairy, 2007a) pioneered by Starbucks in the USA. Other important developments that have fuelled growth in the industry are the increased consumer awareness of the health benefits of milk and milk products and new technologies that enable the shelf life of milk to be extended considerably. In response to growing focus on health, flavoured milk with low fat and sugar has been put on the market.

The industry has also witnessed rapid expansion of coffee shops in Australia. It is estimated that between 2001 and 2004, there was about 100 percent increase in the coffee chain outlets. Also, in 2004/5 about 1.6 billion coffees were served by the food service industry, of which majority were milk-based lattes (Dairy, 2007b). These developments hold good future prospects for the industry.

1.3 Market
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Each of these lines of product has several offerings. The company has five brands of flavoured milk, namely OAK, CREMA, MILK, dare, MOOVE, Just Natural and Jacaranda (Dairy Farmers, 2006b).
OAK is an award winning brand of the company. The flavours used in OAK include Iced coffee, chocolate, straw berry and Vanilla malt. In response to changing consumer tastes and demands, the company has developed OAK lite and OAK long life products. OAK is sold in 500ml, 600ml, and two litre quantities at $ 2.35, $2.05 and $4.30, in that order. The fat content of OAK ranges from 1 to 3.6 percent. The company also put CREMA on the market in 2004 to take advantage of growing love consumers have for coffee. This product is essentially milk for coffee lovers. CREMA, according to the company’s online reports, was developed in consultation with Paul Bassett, the best barista in the

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