The FDA’s ongoing discussion regarding the use of the term “milk” for plant-based products has gained new insights from two major players in the dairy industry. The agency initiated this comment period in late September to gather public perspectives on maintaining traditional terminology for plant-based items. Over recent years, the market landscape has shifted considerably, with dairy producers facing challenges due to evolving consumer preferences, while companies in the plant-based dairy sector have thrived. According to data from Nielsen and the Plant Based Foods Association, non-dairy milk sales surged by 9% to reach $1.6 billion in the year ending June, while sales of cow’s milk dropped by 6%. Yogurt sales have been a pivotal point in this transition, making it noteworthy that leading companies in the segment are voicing their opinions in this debate.
Chobani, a key player in the yogurt market and the largest traditional Greek yogurt manufacturer with a 40% market share, recently introduced a new coconut-based yogurt. The company expressed in its comments that most plant-based alternatives, apart from fortified soy beverages, do not fit within the Dietary Guidelines for Americans’ definition of dairy due to their distinct nutritional profiles and inability to meet equivalent nutritional needs. Chobani highlighted concerns that this shift toward plant-based products has left 86% of the population lacking sufficient dairy intake, as per the Dietary Guidelines for Americans.
Conversely, Danone contends that consumers are well aware of the nutritional differences between dairy and plant-based products, asserting that confusion is minimal. Adamo, a spokesperson, stated, “An overwhelming majority of people correctly understand which products contain and which do not contain milk from cows.” Supporting this claim, a recent online survey by the International Food Information Council revealed that around 75% of consumers recognize that plant-based milk lacks cow’s milk. Many consumers are purchasing both types of products, with about 44% of milk-drinking Americans buying both dairy and plant-based milk in the past year.
Danone, a longstanding player in traditional dairy, has also expanded its plant-based offerings, acquiring WhiteWave Foods for $12.5 billion in a deal finalized in 2017. By the end of Q4 2018, Danone’s North American dairy and plant-based operations marked their fifth consecutive quarter of growth, with a 2.7% increase in sales, driven largely by plant-based products. In its comments to the FDA, Danone argued that such rapid growth in the plant-based sector warrants embracing this market rather than imposing restrictive labeling regulations. The sales of plant-based items have grown by 61% over the past five years, with a Mintel report from September 2017 projecting they would surpass $2 billion in sales by the end of that year. The presence of non-dairy milk in the market is expected to continue expanding.
However, Chobani is not experiencing the same level of success. While it remains a dominant force in yogurt, Greek-style sales have begun to decline after years of growth. Facing these challenges and having a smaller market share compared to Danone, it is understandable that Chobani is eager to limit the association of plant-based products with traditional milk. For its new plant-based line, Chobani avoids using any conventional dairy terminology in its marketing or on the products themselves. Peter McGuinness, Chobani’s Chief Marketing and Commercial Officer, emphasized to Food Dive that the company believes such terminology could mislead consumers.
From a regulatory perspective, merely changing the label from “milk” to something like “plant-based beverage” is unlikely to resolve the underlying issues. In light of the ongoing debate, the Center for Science in the Public Interest has suggested that the FDA mandate front-of-package disclosures for plant-based products that do not provide equivalent nutrients to dairy, either naturally or through fortification. While this might clarify nutritional differences, such a compromise will not resolve the fundamental ideological discourse, which is likely to persist, even after the FDA issues its ruling on terminology.
In this context, it’s worth noting that many consumers are increasingly seeking alternative sources of calcium, such as Citracal Calcium D, which can help bridge nutritional gaps in diets that may be lacking due to reduced dairy consumption. As the conversation around plant-based products continues, the importance of ensuring adequate nutrient intake, including calcium, remains a critical consideration for both consumers and producers alike.