Starbucks and Danone teaming up for new Greek yogurt line

An Evolution Fresh location. Photo: lynneluvah.

An Evolution Fresh location. Photo: lynneluvah.

On Tuesday, July 23, the French food giant Danone and the American coffee chain Starbucks announced that they were joining forces to launch a new line of Greek yogurt.

Named “Evolution Fresh, Inspired by Dannon,” the new Greek yogurt products will make their first appearance next spring in North American Starbucks locations, which amount to more than 10,000. They are expected to hit supermarkets shelves in 2015, followed by a global expansion.

Both brands have much to gain from the new partnership. Starbucks will break into the fast-growing yogurt business with a highly reputable food company. The yogurt products will also help Starbucks expand its “health and wellness” offerings.

In addition, the Danone Group will have the chance to reach new audiences through Starbucks’ enormous brand. “I was really looking to Starbucks because I love their community, the 70 million customers who visit their stores each week, and the way they attract and talk and listen to that community,” said chief executive of the Danone Group Franck Riboud.

Regardless of Starbucks’ reach and Danone’s reputation, the product faces important challenges ahead.

Chobani Inc., the current number one Greek yogurt maker in the United States, is showing no signs of slowing down its expansion. Chobani has recently released 14 new products, and founder Hamdi Ulukaya expects annual sales of yogurt to double over the next three to four years.

Additionally, compared to the Europeans, Americans do not consume as much yogurt. Danone’s chief executive noted that Americans currently eat around 6 kilos (13 pounds) of yogurt per capita in a year, while the French eat 33 kilos (72 pounds).

This trend, however, seems to be changing – and fast. Euromonitor International, a sales tracking firm, estimates a 5.9 percent growth per year in the U.S. retail market for yogurt over the next five years, after growing at a rate of 8.5 percent per year over the last five years.

If this growth is any predictor of the future, Evolution Fresh, Inspired by Dannon could be poised for success in the American market.

Trackbacks

  1. […] The French food giant Danone and the American coffee chain Starbucks announced that they were joinin…. Named “Evolution Fresh, Inspired by Dannon”, the new Greek yogurt products will make their first appearance next spring in North American Starbucks locations, which amount to more than 10,000. They are expected to hit supermarkets shelves in 2015, followed by a global expansion. […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: