What's Happening?
Kerry Dairy Consumer Foods has announced the discontinuation of its hybrid oat-dairy product line under the Smug brand, which was launched in the UK last year. The company is shifting its focus to a new range of dairy snack products set to debut next year. The hybrid range, which combined oats with traditional dairy, included cheeses, butters, and alt-milk products. Despite initial success with listings in major UK retailers like Tesco and Sainsbury's, the hybrid products will be phased out in favor of a full dairy snacking range. The new Smug lineup will feature products such as Cheese & Crunch and Quarkies, designed to meet the growing demand for protein snacks.
Why It's Important?
The decision to phase out the hybrid range reflects the challenges faced by companies attempting to innovate within traditional dairy categories. Kerry's move to focus on dairy snacks highlights a strategic shift towards products that align with consumer trends favoring protein-rich and portion-controlled options. This change could influence other dairy producers to reconsider their product offerings and focus on areas with higher consumer interest and potential for growth. The shift also underscores the importance of adapting to market demands and consumer preferences in the competitive food industry.
What's Next?
Kerry Dairy Consumer Foods plans to roll out the new dairy snack range in January, although specific retail listings have not been disclosed. The company aims to leverage Smug's strengths in taste and branding to capture consumer interest in protein snacking. As the new products hit the market, Kerry will likely monitor consumer response and adjust its strategy accordingly. The success of this transition could set a precedent for other dairy companies considering similar shifts in product focus.
Beyond the Headlines
The move away from hybrid products may reflect broader industry trends where traditional dairy products face challenges in innovation. While hybrid products have seen mixed success, Kerry's decision to focus on dairy snacks could signal a shift towards more conventional product lines that offer clear nutritional benefits. This development may also influence consumer perceptions of dairy products, emphasizing the importance of taste and branding in driving product success.
