Organic Milk Gains Share

supermarketnews.com DATAPOINTS October 1, 2012 ORGANIC MILK GAINS SHARE Organic milk is gaining share as a percentage of total milk volume across a number of retail channels, including supermarkets, according to a report from MilkPEP based on research from Prime Consulting Group, Bannockburn, II. As total milk volume is declining according to the report 240.7 million gallons. Club stores saw a significant portion of that growth in volume, with sales up 57% over 2010 levels. About 10% of milk sold in club stores is organic, the report stated. Natural food stores have the highest percentage of organic milk volume, accounting for more than half of the 29.7 million total gallons of all milk sold in that channel in 2011. Traditional supermarkets also saw increases in organic milk sales last year, although the channel's share of total milk volume decreased by more than a full percentage point, to 42.8% in 2011, down from 43.9% in 2010. it fell about 1.7% in 2011, organic volume rose over 15%, to SOURCE: MİIKPEP Organic Milk on the Rise Flavored Milk Sales Decline* 3.8% 3.3% Traditional Flavored Milk Total Milk Volume Declines Club Stores Gain Share 557.0 542.3 2010 MARKET SHARE 2011 MARKET SHARE 2010 VOLUME 208.7 million gallons (OF TOTAL MILK VOLUME) (IN MILLIONS OF GALLONS) 2011 VOLUME 240.7 million gallons 2008 3.8% 2010 VOLUME 2011 VOLUME 2008 6,411.6 2009 4.1% 57% 2009 6,477.2 2010 4.2% 2010 6,381.8 Organic Flavored Milk 2011 4.5% 13.3 11.3 2011 6,276.1 2010 VOLUME 2011 VOLUME * IN MILLIONS OF GALLONS growth in organic milk sales in club stores in 2011 "Mass merchant sales of milk declined in 2011, the first time since this reporting began. The Supermarket Milk Share Declines 2.3% decline translated into a loss of 21 million 44.6% 44.8% 43.9% 42.8% gallons." - MilkPEP WEBINAR 2008 2009 2010 2011 Share of Total Milk Sales 2011 Natural Food Stores' Milk Sales Drug stores 2.1% Other retail 3.0% (2011 volume = 29.7 million gallons) 6% Small grocery 2.8% Club stores Shrink, etc.* 2.2% Other* 4.5% 11.8% C-stores 7.0% White Milk Schools 34.3% 7.2% Food Retail increase in 42.8% Foodservice organic milk sales in natural Organic 53.9% 14.2% Mass merchandisers 14.2% food stores in 2011 * Shrink plus excluded geographies and products * Includes buttermilk, eggnog and miscellaneous MILK CARTONS By THINKSTOCK