The Milk Producer - August 2010 - (Page 29)

live in households with children. They tend to enjoy cooking, baking and entertaining, and are much more likely to use other dairy products in preparing their meals, says MacDonald. “Studies at the time showed consumers liked the taste of cream and were willing to pay a premium for it. Plus, they were interested in using more natural products,” says PriceOwen. Because consumers tend to cook and bake less with cream as they get older, DFC is targeting younger women by providing them with simple-to-use cream recipes that meet their needs and expectations. Cream usage in Canadian households is currently at 41 per cent, a 2.6 per cent increase over 2005 figures, according to DFC data. Creams of all fat levels experienced retail growth in 2009, but the highest gain was in the 15 to 18 per cent butterfat category, a 5.9 per cent increase from 2008. “Over the past four years, cream with fat over 18 per cent has lost market share to cream with fat between 15 and 18 per cent,” notes MacDonald. While DFC works with processors, retailers and the foodservice and bakery industries to expand its Real Cream program, it’s mainly focused on increasing usage of all cream types in cooking and baking. “Incidentally, price does not seem to be a barrier to buying cream but the fat content is and prevents cream from being used more often,” MacDonald says. Putting more emphasis on how cream enhances foods could help overcome this barrier, he adds. The Real Cream logo, which appears on advertising and promotional material, differentiates real cream from imitation products. Cool Whip, Nutriwhip and coffee whitener, among others, continue to compete with cream, as does, to some extent, milk in coffee and as a substitute in cooking and baking. “Before the cream program, we were facing stiff competition from cream substitutes which had im- Producers benefitted from the cream program by selling more butterfat as cream. Consumers also got better tasting and quality products. proved in quality, were cheaper and had positioned themselves as healthier products,” says Price-Owen. Today, many retailers proudly display the Real Cream logo on their products. For instance, Kawartha Dairy’s ice cream was the first packaged ice cream in Canada to display the logo. Cream is also used as an ingredient in many foods, including ice cream, sauces, soups, stews, puddings and in cakes. Increased consumption of specialty coffees and desserts has also contributed to increased cream use. “The cream program really helped create a demand for high-quality desserts. Consumers got better products and were willing to pay for them, and producers benefited by selling more butterfat as cream,” says Price-Owen. DFC wants to increase home use by promoting cream as a simple, natural ingredient that quickly transforms everyday meals into better-tasting dishes, he says. It expects growth at the retail level for cream to increase three to four per cent in 2011 in Ontario and the Maritimes. DFO’s Cairns expects cream growth to exceed population increases, but says it’s unlikely to keep up the pace of four million kg, or five per cent, annually experienced during the previous 10 years. “Up until now, cream growth has been heavily driven by coffee shops, namely Tim Hortons. However, as the coffee shop market becomes more saturated and expansion slows, we could expect to see a slow-down in the growth patterns we’ve been experiencing with cream,” he says. “On the other hand, Canadian consumers do like their coffee. It’s possible we may experience otherwise.” Will growth continue? As the economy improves, consumers tend to eat out more often, demanding better quality food and enhanced flavours, which could bode well for the cream market, says MacDonald. Sharon Laidlaw is the assistant editor of The Milk Producer MilkPRODUCER | August 2010 | 29

Table of Contents for the Digital Edition of The Milk Producer - August 2010

The Milk Producer - August 2010
Contents
Editor's Notes
DFOVice-Chair's Message
Dairy Update
Industry Roundup
DFC Promotion
Issues Update
Research
Applied Science
Ruminations
Markets
New 'N' Noted
Back Forty

The Milk Producer - August 2010