Dive Brief:
- Noosa Yoghurt is launching a new high-protein, low-sugar line called HiLo which features 12 grams of protein and 12 grams of sugar per 5.3-ounce cup, according to a release sent to Food Dive.
- The brand uses rBST-free milk with premium ingredients such as wild blueberries and wildflower North American honey. The line comes in six flavors: vanilla bean, blueberry, mixed berry, strawberry, plain and peach.
- Priscilla Tuan, senior vice president of marketing at Noosa owner Sovos Brands,told Food Navigatorthese new yogurts are targeted at health-conscious consumers rather than performance-focused athletes, which other protein brands typically target.
Dive Insight:
As the yogurt category evolves in response to changing consumer trends, manufacturers like Noosa are trying to differentiate their products to stand out on shelves.
Last year,Sovos Brands acquiredNoosa. Since then, the parent company has ushered in a flurry of product updates to the yogurt manufacturer, including new miniature tubs and blended options to appeal to a wider range of consumers. Now, the brand is hoping to widen its appeal through its nutritional profile.
"When we bought the company, we noticed that it has really just focused on one segment of the occasion within yogurt," Tuan told Food Navigator.
The HiLo line significantly increases the amount of protein in Noosa yogurt while reducing its sugar count. The brand's core line features 7 grams of protein and 17 grams of sugar. Focusing on protein is a wise choice as consumers are turning toward brands thatoffer functional benefitsin addition to good taste. More products —including chips, shakes, ice cream and candy — aretouting higher proteinto draw in consumers.
The yogurt segment's push toward high-protein paired with low-sugar can be seen in the increasing popularity of some European style yogurts such as Skyr. In fact, as yogurt sales on the wholehave dropped, Icelandic yogurt, which contains more protein than other brands, has grown at a 51% compound annual growth rate during the last four years,according to Nielsen.
Adding protein and reducing sugar also opens yogurt to other mealtimes. Instead of remaining relegated to the breakfast table, having a high-protein option helps Noosa target consumers looking for a powerful mid-afternoon pick-me-up or a post-workout replenishment for the on-the-go individual. Accessing these target demographics is critical for yogurt manufacturers seeking growth.Mintel reported two years agothat 84% of consumers choose yogurt as an afternoon snack, compared to 41% in 2014.
Still, Noosa is launching this line in a category with intense competition. In addition to startup brands,Danone North Americahas introduced a Greek low fat yogurt with two grams of sugar called Two Good while Yoplait hasYQ by Yoplaitthat is made with ultra-filtered milk and less sugar. With hundreds of yogurt options on store shelves andnew varieties made with nut butters and oatsbeing introduced, dairy companies are looking for anyway to stand out in a croweded space.
Noosa has benefited by sticking exclusively to the dairy category with unit growth up 1.3% in the last 52 weeks,according to Food Navigator. However, Noosa still has a steep climb to attract consumer attention for its products. Although consumers are looking for healthier options, simply increasing the protein to sugar ratio may not be enough. Noosa released its new product line with basic flavors and standard, spoonable packaging – something consumers aremoving away frombecause it isn't as convenient. Without adding further differentiation, it will likely be difficult for the brand to entice consumers that are not already loyal to the product.
