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Danone’s Too Good & Co. has expanded into creamers, becoming the first low-sugar yogurt brand to enter a new category.
The dairy giant is launching a line of coffee creamers that contain about 3 grams of sugar per serving, compared to about 5 grams in leading coffee creamers. There are three options for this launch: Sweet Cream, Toasted Vanilla, and Seasonal Lavender.
Olivia Sanchez, senior vice president of creamers at Danone North America, said Danone chose Too Good because of its low sugar halo and use of real ingredients. She noted that 68% of consumers prefer creamers made from natural ingredients, while four in 10 are trying to reduce their sugar intake, according to research by Kantar and Danone.
“We have full expertise in dairy yogurt stores, and expanding into coffee creamers was a natural step for us,” Sanchez said in an interview. “We felt this was a unique opportunity.”
Danone’s latest product will compete more directly with Chobani. I’ve had success with creamers. Contains natural, non-GMO ingredients while avoiding artificial flavors, sweeteners or preservatives. Chobani has been rapidly gaining market share in this space and now has 11.5% of the $5 billion category, compared to 5.5% a year ago.
Sanchez said expanding Too Good into dairy-adjacent spaces like creamers was a natural move. Data from Circana IRI shows that 86% of refrigerated creamer buyers also purchase yogurt.
The launch of Too Good creamers leverages this redundancy to help retain more individuals for the fast-growing brand. According to Circana IRI, nearly 57% of Too Good shoppers buy refrigerated creamer.
The yogurt was launched by Danone in 2020 as Two Good, highlighting that the product contains only 2g of sugar. The company changed its name last year to reflect a broader product line, including some items containing more sugar.
Sanchez said the dairy brand “provides a great platform” to expand into other products that prioritize low sugar and standout ingredients. For example, Too Good launched pouches last August to help kids head back to school.
Danone is no stranger to the creamer space, led by its International Delight brand. The France-based company also sells the creamer at Dunkin’ and its plant-based Silk line. Circana IRI said Danone North America is the second-largest manufacturer in the $4.9 billion refrigerated coffee creamer segment.
Earlier this year, Danone spent $65 million. Expands Jacksonville, Florida plant to help company meet growing demand for International Delight, STōK Cold Brew and other coffee and creamer brands.
Creamers have surged in popularity during the pandemic as many consumers looking to recreate the premium coffeehouse experience at home continue to create their own creamers. drink. In addition to creamers, Gen Z and millennial shoppers have also embraced: cold foam And the unique flavors that allow you to personalize your own coffee create additional growth opportunities for Danone and other companies.
You need to find your niche in the market despite an increasingly competitive environment as consumers look for more products that are better for them, like Too Good creamers.
“Low sugar is the biggest differentiator for this creamer brand to be the best in the clean label dairy category and gives us a huge differentiator from leading competitive brands,” said Sanchez.
