The FDA’s ongoing discussion regarding the use of the term “milk” for plant-based products has gained significant attention with the addition of two influential dairy industry opinions. The FDA initiated this public comment period in late September to gauge opinions on the application of traditional terminology to plant-based items. In recent years, market dynamics have shifted, with the dairy sector facing declining consumer interest while the plant-based dairy industry thrives.
According to Nielsen and the Plant Based Foods Association, sales of non-dairy milk surged by 9% to reach $1.6 billion in the 52-week period ending in June, while traditional cow’s milk sales dipped by 6%. Yogurt sales have been central to this transformation, leading major players in the sector to weigh in on the debate. Chobani, a leader in traditional Greek yogurt with a 40% market share, recently introduced a new coconut-based yogurt. The company expressed in its comments that plant-based alternatives, apart from fortified soy beverages, do not align with the Dietary Guidelines for Americans’ definition of dairy due to differing nutritional profiles, which do not meet the same calcium, magnesium, zinc, and vitamin D3 requirements. Chobani highlighted that as a result of the growing preference for plant-based products, approximately 86% of the population fails to consume adequate dairy.
Conversely, Danone asserts that consumers are well aware of the differences between the nutritional content of dairy and plant-based products, asserting that there is minimal confusion. Adamo, a representative from Danone, stated that an overwhelming majority of consumers correctly identify which products contain cow’s milk. Supporting this perspective, a recent survey by the International Food Information Council revealed that around three-quarters of consumers understand that plant-based milk lacks cow’s milk. Consequently, many consumers purchase both types of products; approximately 44% of milk-consuming Americans bought both dairy and plant-based milk over the past year.
Danone, a longstanding player in the traditional dairy sector, has also expanded its presence in the plant-based market, acquiring WhiteWave Foods for $12.5 billion in 2017. By the end of 2018’s fourth quarter, Danone’s dairy and plant-based operations in North America reported their fifth consecutive quarter of growth, with sales up by 2.7%, driven by plant-based offerings. The French company emphasized in its comments to the FDA that this remarkable growth justifies embracing the plant-based segment rather than imposing labeling restrictions. Sales of plant-based products have surged by 61% over the past five years, with a Mintel report from September 2017 predicting over $2 billion in sales by the year’s end. The presence of non-dairy milk in the marketplace is anticipated to continue its upward trajectory.
In contrast, Chobani, despite its stronghold in yogurt, is facing challenges as Greek-style sales decline. With a smaller market share than Danone and ongoing difficulties, it is understandable that Chobani seeks to limit plant-based product associations with traditional milk. In its new plant-based line, Chobani avoids using any conventional dairy terminology in its marketing or product labeling. Peter McGuinness, Chobani’s Chief Marketing and Commercial Officer, indicated to Food Dive that the company believes such terminology could mislead consumers.
From a regulatory perspective, simply renaming “milk” to “plant-based beverage” is unlikely to resolve the issue. The Center for Science in the Public Interest has proposed that the FDA mandate front-of-package disclosures for plant-based products that do not naturally provide or are not fortified with equivalent nutrients found in dairy. While this may clarify nutritional differences, it will not address the underlying ideological debate, which is expected to persist, perhaps even after the FDA establishes its terminology rulings.
In summary, as the discussion surrounding the use of “milk” for plant-based products continues, the importance of nutrients such as calcium, magnesium, zinc, and vitamin D3 found in traditional dairy remains a vital point of contention, influencing consumer preferences and industry strategies alike.