Danone looks to grab more coffee creamer sales with launch of plant-based Honest to Goodness brand

Honest To Goodness plant-based creamer

Source: Honest To Goodness

Danone unveiled Honest to Goodness, a line of plant-based coffee creamers, on Monday, hoping to seize some of the rising demand for non-dairy merchandise as more shoppers brew coffee at dwelling.

Gen Z coffee drinkers are guzzling about 28 billion cups of coffee per yr, driving consumption within the class, in accordance to Danone.

These youthful shoppers are in search of out manufacturers that supply transparency into their product sourcing and are delicate to environmental points, in accordance to Olivia Sanchez, Danone’s North America vp of advertising for coffee creamers.

Millennials are additionally making an attempt to use more sustainable merchandise. Danone instructed CNBC that 75% of millennials store with the setting in thoughts.

This is one issue that has been driving sales of dairy-free coffee creamers. In the 52 weeks ended Feb. 20, sales are up 32% from the identical interval a yr in the past, in accordance to Nielsen knowledge. That’s a sooner tempo than coffee creamer class as an entire, which grew 18% throughout the identical time interval.

Danone at the moment sells manufacturers corresponding to International Delight and Silk. But the class has seen new entrants corresponding to Chobani and Oatly.

Consumers are shifting to plant-based alternate options for a lot of causes, together with lactose intolerance and environmental considerations. That’s driving up sales of plant-based dairy alternate options, which grew 21%. Almond milk, the ingredient in Honest to Goodness merchandise, was the most important rising dairy various, with sales up 16% in the identical length.

“We know that plant-based is a trend and it has amazing growth in the marketplace and flexitarianism is on the rise. We see those shoppers wanting to lean into newer propositions and exploring what is in the plant-based set, and so Honest to Goodness is really designed for that consumer in mind,” Sanchez stated.

Flexitarian is a time period describing individuals who consciously strive to reduce their meat consumption for environmental or well being causes.

Another issue boosting creamer sales has been elevated consumption of coffee at dwelling, which may ease as staff return to the workplace because the well being disaster abates.

“New routines mean Americans are drinking more of their coffee at home than ever, but many are also returning to coffee shops around the country or plan to do so soon,” stated Bill Murray, president and CEO of the National Coffee Association.

Darren Seifer, a meals trade analyst at market researcher the NPD Group, stated brewing at dwelling may linger as individuals return to work. He cited the quantity of shoppers who bought coffee machines throughout the pandemic.

The Honest to Goodness brand can also be partnering with environmental group, in an effort to promote sustainability by planting bushes in Madagascar, the place its vanilla is sourced, and interesting with native communities as half of The Canopy Project.

Its lineup will embrace three totally different flavors: Madagascan vanilla bean, unsweetened Madagascan vanilla bean and Himalayan salted caramel. The merchandise might be accessible on-line first by Amazon and through grocery supply service FreshDirect.

Earlier Monday, Danone introduced its CEO and chairman Emmanuel Faber is stepping down with Gilles Schnepp taking the function as non-executive chairman.

Correction: Honest to Goodness might be accessible through FreshDirect. An earlier model misstated the place it might be bought.

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