2014 zenith innovation series lactose free sample

zenithinternational

November 2014

2014 Lactose Free Innovation

A review of recent key trends and new product development

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Research Note In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources and interviews with the industry. Throughout its on-going research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace, and, as such, seeks to achieve a high level of accuracy.

Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information.

Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith International Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith International from any liability related to the report distribution. Such readers however will not be considered “users� of this report.

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CONTENTS

For enquiries regarding this report, please contact: Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom T +44 (0) 1225 327900 F +44 (0) 1225 327901 www.zenithinternational.com

Section

Page

1. Introduction and scope

5

2. Category overview:

8

 Commentary: Lactose-free misconceptions  Commentary: Lactose intolerance and prevalence  Commentary: Global trends and developments  Commentary: Lactose-free opportunities  Commentary: Lactose-free challenges  Commentary: Lactose-free dairy products  Commentary: Dairy-free products

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3. Brand profiles: Lactose-free dairy products

20

3.1 Brand profiles: Milk

21

3.2 Brand profiles: Milk drinks

24

3.3 Brand profiles: Yoghurt

32

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CONTENTS

For enquiries regarding this report, please contact: Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom T +44 (0) 1225 327900 F +44 (0) 1225 327901 www.zenithinternational.com

zenithinternational specialist consultants to the food and drink industries worldwide

Section

Page

3.4 Brand profiles: Cream

45

3.5 Brand profiles: Ice cream

51

3.6 Brand profiles: Butter

53

3.7 Brand profiles: Cheese

58

3.8 Brand profiles: Powdered milk

63

3.9 Brand profiles: Dairy desserts

66

4. Brand profiles: Confectionery

68

5. Brand profiles: Dairy-free products

72

5.1 Brand profiles: Drinks

73

5.2 Brand profiles: Yoghurt

94

5.3 Brand profiles: Desserts

98

5.4 Brand profiles: Creamer

103

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zenithinternational 1. Introduction and scope

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Page 5

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INTRODUCTION AND SCOPE Lactose-free innovation

Overview The aim of this report is to assess developments in the lactose-free sector, identifying and summarising trends and new innovations in order to understand what opportunities exist for new product development.

Scope A global market overview of trends and developments, featuring brand profiles to benchmark against leading and innovative lactose-free products worldwide, tracking recent innovation within the lactose-free category as well as investigating the future outlook of the market.

The report contains detailed profiles of products launched from 2012-2014, organised by two main categories:  Lactose-free dairy products  Dairy-free products

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Products profiled in this report contain features that span a number of trends shaping the future of the lactose-free sector, including:  Fortification with milk proteins, vitamins and minerals  Less sugar content  Less fat content or fat-free  Extension with new ingredients and food groups  New combinations of flavours  Better taste thanks to technological developments  Mainstream appeal

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INTRODUCTION AND SCOPE Lactose-free innovation Definition: Low-lactose products, lactose-free products and dairy-free products

For the purpose of this report, Zenith has limited its research scope using the following definitions:  Low-lactose products are products in which the lactose has been broken down into glucose and galactose.  Lactose-free products are products from which part of the lactose contained in milk is removed completely through different methods like ultrafiltration and diafiltration or chromatographic separation and the residual lactose is then hydrolysed. So far no common limit values have been defined at EU level for the lactose content of low-lactose and lactose-free food products.  Dairy-free products are free from milk-based ingredients, hence, they are lactose-free.

Low-lactose and lactose-free products are intended to people suffering from lactose intolerance. Lactose intolerance is the inability to digest lactose, a sugar found in milk. Lactose intolerant individuals have insufficient levels of lactase, an enzyme produced in the small intestine that breaks down the lactose into simple sugars, glucose and galactose, which are then absorbed into the bloodstream. In most cases, this causes symptoms which may include abdominal bloating and cramps, flatulence, diarrhoea, nausea or vomiting. Lactose intolerance is often self-diagnosed, and mistaken for other gastrointestinal problems, such as Irritable Bowel Syndrome.

NB: Lactose intolerance is not the same as a milk allergy. Milk allergy refers to the body reacting to the proteins contained in milk, while lactose intolerance is an inability to absorb lactose.

Coverage Innovation and new product development shaping the global market for lactose free products launched from 2012 to 2014.

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Page 7

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zenithinternational 2. Category overview

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Page 8

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zenithinternational 3. Brand profiles

Lactose-free dairy products

3.1 Brand profiles: Milk 3.2 Brand profiles: Milk drinks 3.3 Brand profiles: Yoghurt 3.4 Brand profiles: Cream 3.5 Brand profiles: Ice cream 3.6 Brand profiles: Butter 3.7 Brand profiles: Cheese 3.8 Brand profiles: Powdered milk 3.9 Brand profiles: Dairy desserts zenithinternational specialist consultants to the food and drink industries worldwide

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LACTOSE-FREE DAIRY PRODUCTS Milk

Anchor Zero Lacto Fonterra – New Zealand www.zerolacto.co.nz Product information: Anchor Zero Lacto milk, produced by dairy giant Fonterra, was launched in New Zealand following more than three months of development. The level of lactose is less than 0.05%.

Launch date: September 2012 Variants: Anchor Zero Lacto Blue – full fat; Zero Lacto Trim – 99.5% fat free skimmed milk Ingredients: standardised cow’s milk, lactase enzyme Channels: retail Pack size & type: 1 litre bottles Price: A$2.79 per 1 litre bottle (Anchor Zero Lacto Blue)

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zenithinternational 4. Brand profiles: Confectionery

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zenithinternational 5. Brand profiles

Dairy-free products

5.1 Brand profiles: Drinks 5.2 Brand profiles: Yoghurt 5.3 Brand profiles: Desserts 5.4 Brand profiles: Creamer

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