Thirsty ThoughtsDrinking Yoghurt

Annual Market Quantification

September 2011

Setting the scene

2

Drinking yoghurt is essentially stirred yoghurt that has a sufficiently low total solid content to

achieve a liquid, pourable consistency. When flavoured drinking yoghurt is produced, 15-20%

fruit juice is normally added to the product and mixed thoroughly before packaging it. Heat

treatment may be applied to extend the storage life, although this would reduce or eliminate the

viable yoghurt culture organisms. It is available plain or flavoured in full cream, low fat or zero

fat formats.

Drinking yoghurt is commonly consumed as a beverage and is a healthy addition to children’s

lunch boxes. It is available in a variety of pack sizes; both single serving and family-size packs;

and is normally packed in cartons, HDPE/PET bottles as well as sachets. Drinking yoghurt

competes with other dairy beverages such as milk, dairy juice blends and flavoured milk as well

fruit juices. Their unique selling proposition lies in their ability to be supplemented by means of

value addition ingredients, such as probiotics.

2010 Category Distribution

3

Bottom-End Retail

42.6%

Garage Forecourts4.0%On-Consumption

2.9%

Top-End Retail37.2%

Wholesale

13.3%

Annual Growth Rates

4

2005 2010-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Drinking yoghurt recovers lost volumes

5

Drinking yoghurt is a popular drink amongst the younger generation, with marketing focus

placed on the young adult demographic. The category leader is the Yogi-sip brand, which is

marketed as a vibrant, energy-filled product, aimed at university or young working population.

Drinking yoghurt saw large growth in 2010 as several large players expanded their lines. This

growth also represents a recovery in volumes lost during the 2009 recession.

Movement within the regional players has seen Gauteng become the focus of some players,

even though production in this province saw a decline in 2010. This is not a particularly well-

established category and thus given the reduced base, even the smallest volume movement

reflects as large growth in percentage terms.

As production moved away from sachets, rigid plastic saw growth from 64.1% in 2009 share to

86.9% in 2010. This level of growth shows the focus on this particular pack format, with new

packaging designs and labeling allowing more freedom in the branding and marketing of

drinking yoghurt.

Thirsty ThoughtsDrinking Yoghurt

For more information, contact:

Jan Wegelin Research ManagerTel: (011) 615 7000 Mobile: 082 938 0744

www.bmi.co.za