Stevia-sweetened Two Good incorporates no added sugar and 2g of whole sugar (many of the lactose is filtered out of the milk, with cultures consuming many of the remaining sugars), and has quickly change into certainly one of Danone’s most profitable launches, Surbhi Martin, VP Greek Yogurt & Purposeful Diet at Danone North America, advised FoodNavigator-USA.
“Since we launched in 2019, we’ve grown right into a $227m retail gross sales model [52 weeks to November 27, 2022], and within the three-year timeframe 2020 to 2023, Two Good has pushed 31% of the full yogurt class’s greenback progress in that three-year interval versus the prior interval.”
In the meantime, 43% of Danone North America’s progress in yogurt between 2019-2022 has been pushed by Two Good (as of Nov 27, 2022), she revealed.
“Two Good continues to expertise fast progress via buying and selling up our loyal client base, with gross sales up 8.4% year-on-year within the 52 weeks to Nov. 27, 2022 [IRI MULO data, total US].”
Elevated aggressive dynamics in low/no sugar yogurt phase
That mentioned, progress charges have slowed down, “which is pure as manufacturers mature and evolve,” she added.
Among the slowdown has been pushed by “elevated aggressive dynamics within the low sugar phase [rivals Chobani and General Mills have both brought out products in this segment in recent years, although Two Good has a 23.8% share of the lower/no sugar yogurt segment in 2022, says Danone],” she acknowledged, whereas some has been pushed by “provide challenges on a few of our supplies, corresponding to lids and labels.
“Nevertheless, regardless of a few of these difficult headwinds, Two Good elevated family penetration a full level within the final yr, so we’re now as much as 7.5% family penetration.”
SPINS knowledge, US retail gross sales of yogurt 52 weeks to Dec 4, 2022: Greenback gross sales +11.4%, models -4.9%
Based on SPINS US retail knowledge shared with FoodNavigator-USA, the total yogurt class (spoonable and drinkable yogurt, pure enhanced and MULO/standard grocery channels) grew 11.4% in greenback gross sales to $8.175bn within the yr to Dec. 4, 2022, whereas models had been down -4.9%.
Within the 12 weeks to Dec 4, greenback gross sales had been up +14.3% and models down -6.8%, reflecting inflationary pressures impacting most classes in grocery.
Greenback gross sales of plant-based yogurt had been up 4.8% to $391.92m within the 52 weeks to Dec 4, 2022, with models down -4.7%, with all the expansion coming from coconut- and cashew-based merchandise. Within the newest 12 weeks, greenback gross sales had been up +2.1% and models down -9.3%.
Launched in January 2019, Two Good cups comprise no added sugar, and 2g of whole sugar.
Elements, Two Good Strawberry Banana: Cultured decreased fats milk, water, lower than 1%: tapioca starch, pectin, pure flavors, vegetable juice & turmeric (for shade), lemon juice focus, stevia leaf Reb M, sea salt, vitamin D3, lively yogurt cultures L. bulgaricus & S. thermophilus.
Diet: Every 5.3oz cup has 80 energy, 12g protein, 2g sugar, and 0g added sugar
Picture credit score: Danone North America
Two Good Smoothies: Incremental progress?
Danone can also be hoping its current transfer to take the model into the drinkables phase with Two Good smoothies (70 cals, 10g protein, 3g sugar per 7oz bottle) will deliver incremental progress, she mentioned.
“We launched Two Good Smoothies in October of 2022 and we’re actually enthusiastic about taking that low sugar proposition into the handy moveable format of a low sugar drink, which has actually been missing within the grownup yogurt drink phase.
“Low or zero sugar [spoonable] yogurt has 25% family penetration, whereas low sugar grownup yogurt drinks solely have a family penetration of about 0.5%, in order that tells us there’s an enormous alternative for Two Good in that phase, and we have gained nice distribution on the smoothies within the first six months.
“As well as, we’re planning to proceed to develop our Two Good core vary by investing extra media to drive consciousness of the model, so we’ll be investing two and a half occasions in media and client promotions in 2023 versus 2022.”
She added: “We have additionally labored exhausting to make sure safety of provide in order that we are able to absolutely deal with a number of the out-of-stock points that was a headwind to our progress in 2022.”
Gentle & Match again in progress
Requested concerning the efficiency of different manufacturers in her remit, Martin mentioned: “Our Gentle & Match zero sugar innovation that we launched in the summertime of 2022 is one other nice instance of us innovating throughout our yogurt portfolio past simply Two Good to have the ability to meet that client want for nice style and low or zero sugar.
“Our Gentle & Match portfolio has returned to progress, and because the launch of zero sugar, we have attracted new households to the Gentle & Match model and pushed some strong family penetration within the first six months of launching zero.
“For the newest 5 weeks ending Jan. 1, 2023, Gentle & Match greenback gross sales are up 14.7%.”
In the meantime, Oikos Triple Zero (zero synthetic sweeteners, zero fats, zero added sugar) and excessive protein line Oikos Professional are additionally performing properly, she claimed. “We’re actually happy by the expansion we have seen within the final yr on Oikos in totality pushed by the efficiency of Professional and Triple zero and we can even be returning to the Tremendous Bowl in 2023 for the fourth time.”
FDA ‘wholesome’ definition’
Requested concerning the FDA’s proposed new definition of ‘wholesome’ for meals labeling functions, which might forestall yogurts containing greater than 2.5g added sugar from making ‘wholesome’ claims, she mentioned:
“Each Two Good and Gentle & Match Zero Sugar could be within the ‘wholesome’ class below the brand new tips relating to sugar.”
A Danone North America spokesperson added: “We’ll prioritize new reduced-sugar, low-sugar, and no-added-sugar choices in youngsters’s merchandise, pledging 95% of them can have lower than 10 grams of whole sugar per 100 grams by 2030.”
Whereas a sizeable chunk of ‘ugly’ or ‘imperfect’ produce that isn’t fairly sufficient for grocery retail markets goes into industrial meals processing markets (jams, juice and many others), there’s a third class of contemporary produce that for varied causes doesn’t get into both stream, and finally ends up as animal feed or waste, mentioned Martin, who mentioned Two Good is increasing its partnership with Full Harvest to make use of ‘rescued’ produce.
“We’re utilizing verified rescued fruit from Full Harvest, which runs a b2b on-line market that connects farmers with industrial produce consumers, the place they’ll buy both imperfect or surplus produce that might in any other case go to waste.
“We have expanded past the unique Meyer lemon taste to incorporate pumpkin and mandarin orange seasonals and so far we have rescued 500,000lbs of produce that might in any other case have been wasted.”