Going Greek

Sales of Greek yogurt in each of the past three years have surged more than 100%, while non-Greek yogurt has grown at a single-digit pace, according to Nielsen.

March 19, 2012

CHICAGO - Greek yogurt is causing quite a stir with consumers.

The Chicago Tribune reports that in 2011, Greek yogurt accounted for 20% of total yogurt sales, according to SymphonyIRI data, and 15% of volume sales. In each of the last three years, sales of Greek yogurt have surged more than 100%, while non-Greek yogurt has grown at a single-digit pace, according to Nielsen.

What??s so great about Greek yogurt? According to industry experts, its tart flavor and creamy texture are "wooing" consumers from traditional varieties, and in some cases luring them to start eating yogurt. Greek yogurt can also be a healthy option for consumers with its high protein, more calcium and low sugar content.

But eating healthy does come at a price: A single container of Greek yogurt is typically 30 cents to 50 cents more than traditional, non-Greek varieties. The newspaper notes that for Greek yogurt manufacturers, the rise in sales, despite the higher price tag, means "they have hooked more-affluent consumers."

Berlin, New York-based Chobani spokeswoman Nicki Briggs credits the segment's rapid growth to the taste of the product, as well as the nutritional benefits.

"For the longest time I think yogurt was a box you had to check, but I'm not sure people enjoyed eating it," she told the newspaper. "But you didn't hear people screaming from the mountaintops about the taste until Greek yogurt."

Chobani saw its sales increase 144% over the last 52 weeks, to $626 million, notes the newspaper.

"It's such an amazing story when you look at the overall category," said Larry Levin, executive vice president at SymphonyIRI, noting that yogurt category dollar sales grew 9% during the last year while units declined 3%. He added that the real growth is coming from brands like Chobani and Fage, a Greek yogurt brand that posted a 37% increase in sales in the last 52 weeks, to $195 million. More established, traditional yogurt brands, however, have struggled to capture "a significant chunk" of the Greek yogurt market.

Stonyfield Farm, an organic yogurt company, has expanded its Greek yogurt portfolio with drinkable smoothies and frozen dessert treats. However, according to the news source, while sales for Greek are good, Stonyfield??s traditional organic yogurt sales declined 16% last year, to $116 million.

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