Powerful Yogurt CEO Carlos Ramirez believes the fledgling US firm can ride out Danone‘s bid to get more men eating the French group’s yoghurt with its launch of Oikos Triple Zero.
Danone last week launched its new Oikos line, which the company hopes will expand its potential customer base in the US from a “predominantly female consumer”.
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The Greek yoghurt category, which has seen rapid growth in recent years, is slowing. Danone is looking to boost sales by targeting men through the launch of Oikos Triple Zero, which has 15g of protein but has no added sugar, artifical sweeteners and fat. It has also hired Carolina Panthers quarterback Cam Newton to market the new product.
Powerful Yogurt was launched in 2012, initially aimed squarely at male consumers. With 25g of protein, its consumer base is still predominantly men, which leaves the business facing a formidable competitor in the shape of Danone.
However, Ramirez has welcomed the launch, arguing it will help grow the segment.
“Danone is investing in expanding the category, which is great. They are creating awareness and bringing in a new consumer in a more powerful way because they have more money,” Ramirez told just-food. “It’s great they are bringing new guys to the dairy aisle, which has been my task since day one.”
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By GlobalDataRamirez, a former executive at Colombia-based dairy group Alpina, has secured listings for Powerful Yogurt at retailers including Walmart, Whole Foods Market and Hy-Vee and is in talks with Kroger.
He acknowledged the launch of Oikos Triple Zero would have an immediate impact on his business and revealed one major national US grocer had warned him a launch from Danone was in the pipeline. However, he insisted Powerful Yogurt could prosper with its yoghurt and through its moves into snack bars and drinks.
“Don’t get me wrong, in the short term, this will obviously affect us. In fact, it has affected us already. I had a pitch at Safeway a few months ago and the buyer said ‘Hey I’m taking this brand and they are going to have a national campaign.’ We are feeling the heat a little bit but I know in the mid term we will be perfectly fine as our values proposition is going to come out,” he said. “We are talking to the guy who is an athlete, who is an active lifestyle. We have all-natural, great-tasting, high-protein options.”
Ramirez had questioned the way Danone had positioned Oikos Triple Zero. “Danone has a value proposition of triple zero and guys couldn’t care less. Guys are all about protein, a satisfying meal or snack. The proposition of zero, zero, zero is more for women. I saw a disconnect there between what the consumer wants and what they are proposing.”
Click here for in-depth analysis of Danone’s launch of Oikos Triple Zero, including further comment from Ramirez, Danone, as well as analysts from Euromonitor and Datamonitor.
