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Danone Expands Too Good Brand Into Coffee Creamers Market

Sourse: dairynews.today
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Danone’s Too Good & Co. has launched a new line of coffee creamers, marking the brand's first venture outside of its established low-sugar yogurt category. The creamers, which contain about 3 grams of sugar per serving, offer flavors such as sweet cream, roasted vanilla, and a seasonal lavender option. The move positions Danone against competitors like Chobani in the $4.9 billion category.
Danone Expands Too Good Brand Into Coffee Creamers Market

This initiative is part of Danone's strategy to leverage its expertise in dairy products to capture a share of the growing coffee creamer market.

Olivia Sanchez, senior vice president of creamers for Danone North America, stated that the decision to expand into coffee creamers was driven by consumer demand for products with natural ingredients and reduced sugar content. According to a survey conducted by Kantar and Danone, 68% of consumers prefer creamers made with natural ingredients, and four out of ten are looking to lower their sugar intake.

Danone’s entry into the coffee creamer market places it in competition with brands like Chobani, which has gained a significant market share by offering creamers with natural, non-GMO ingredients. Currently, Chobani holds 11.5% of the $5 billion market, up from 5.5% a year ago. Danone is the second-largest manufacturer in the $4.9 billion refrigerated coffee creamer category.

The launch is also supported by data from Circana IRI, which indicates that 86% of refrigerated creamer buyers also purchase yogurt, suggesting a strategic overlap for Danone's Too Good brand. Nearly 57% of Too Good shoppers buy refrigerated creamers, highlighting the potential for cross-category consumer retention.

Danone has previously invested $65 million in expanding its Jacksonville, Florida plant to meet increasing demand for its coffee and creamer products. The company also markets creamers under the International Delight, Dunkin’, and Silk brands. This expansion into the creamer space aims to cater to consumers seeking premium coffee experiences at home, a trend that has accelerated since the pandemic.

As the market for healthier, lower-sugar products continues to grow, Danone's Too Good creamers aim to establish a niche, emphasizing their clean label and natural ingredients as key differentiators from leading competitive brands.


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