Kerry Dairy's Smug Brand Retreats from Hybrid Lineup

Kerry Dairy Consumer Foods is phasing out its Smug hybrid range, initially launched in the UK last year, which blended traditional dairy with oats, into cheeses, butters, and alternative milks. Despite initial listings in major retailers like Tesco, Sainsbury’s, and Morrisons, the company will cease production, transitioning towards a new line of dairy snack products to be launched next year.
The Smug brand, originally marked as a ‘category first’ aimed at offering new experiences for dairy lovers, is being redirected under the guidance of Victoria Southern, Kerry Dairy Ireland's strategy, marketing, and innovation director. Southern noted the difficulties in altering established categories like milk and butter, shifting focus to capitalize on Smug’s playful branding and nutritional benefits in more exploratory consumer markets.
The new Smug lineup will include items like Cheese & Crunch in sea salt, rosemary, and barbecue corn flavors, alongside 'Quarkies' with raspberry and vanilla variations. The shift aligns with growing trends in protein snacking and the demand for indulgent yet nutritious options, Kerry said.
The move exemplifies the challenges and opportunities within the hybrid dairy sector. While initiatives by other companies like Arla Foods and Triballat Noyal have similarly been withdrawn, Danone's Dairy & Plants Blend formula and The Laughing Cow’s hybrid spreads have seen success.