Starbucks jumps on Greek yogurt trend with Dannon

Following its foray into fresh pressed juices, energy drinks and handcrafted sodas, coffee giant Starbucks has now set its sights on one of the fastest-growing food segments among US households: Greek yogurt. In partnership with yogurt maker Dannon (the US subsidiary of Danone in Paris), Starbucks is developing ready-to-eat parfait Greek yogurt products that will line store shelves next spring under the Evolution Fresh brand. The same products will also be sold in grocery stores the following year in 2015. An international expansion will launch in target markets during a second phase. The partnership is a strategic one that touches on the soaring popularity of Greek yogurt within North American households, a relatively recent dairy discovery that has built a major fan base among consumers for its unctuous, rich taste. Greek yogurt is made by straining the whey, a method that produces a thicker, creamier consistency. According to trade publication Packaged Facts, Greek yogurt can be credited single-handedly for the boom in yogurt consumption in the US last year, where sales rose nearly 7 percent from 2011 to $7.3 billion. “Greek yogurt surged from being just a sliver of the yogurt market in 2007 to becoming the most important trend in the industry, albeit at the expense of non-Greek yogurt dollar and unit sales,” says the report. For its part, Dannon is eyeing the US market for growth. While yogurt consumption in North America has experienced what Packaged Facts describes as a “sea change” due to the arrival of the Greek yogurt segment, there’s still relatively low penetration in the US, presenting yogurt makers with ample potential for growth. Similarly, as a regular morning pitstop for many consumers on their way to work, adding Greek yogurt to their shelves bolsters Starbucks' hold in the breakfast, health and wellness segment. The collaboration with Starbucks is the latest strategy out of Dannon to edge out rival brand Chobani. Last year, Dannon opened what it markets as a gourmet yogurt bar called The Yogurt Culture Company in New York, where customers can build their own parfaits, smoothies and juices. Chobani likewise opened Chobani SoHo in New York, which it bills as a Mediterranean yogurt bar.