DALLAS — With the introduction of DairyPure, Dean Foods is taking another step to create a national, unifying fluid milk brand. The first step was the successful launch of its TruMoo flavored and enhanced fluid milk line. Now the nation’s largest dairy processor is embarking on its second ambitious brand building effort.
“For the consumer, DairyPure is on trend with their desire for a clean label, local, fresh, protein and nutrient-packed products,” said Gregg Tanner, chief executive officer of Dean Foods, in a conference call with financial analysts on May 11. “DairyPure isn’t just a new label; it is a set of messages to consumers that dispel some myths about white milk. We call it our five-point purity promise, which states that our farmers pledge not to use artificial growth hormones; we test all milk for antibiotics; it is continually quality tested to ensure purity; it is only from cows fed a healthy diet; and it is cold-shipped from our local dairy. Consumers have told us they care about these things and while our milk has had these qualities for years, now we are able to talk about it on a national platform.
“DairyPure is also an easy transition for consumers building on regional white milk brands they are familiar with and value. During 2014, we transitioned our regional milk labels to a common look and feel to ease the transition to a national brand. To be clear, those labels now carry the DairyPure name prominently displayed alongside the regional brand logo.”
The intent of DairyPure is to fill a void in the dairy industry, Mr. Tanner said. It offers the company and the dairy industry an opportunity to educate consumers about the nutritional benefits of white milk and it is hoped the national campaign will elevate the freshness and purity of white milk in the eyes of consumers.
“Our retail customers have already embraced DairyPure because it simplifies their world with a single UPC code that will enhance their efficiency and effectiveness while retaining the benefits of regional brand equity that was built up over time,” Mr. Tanner said. “DairyPure enables national customers to run the same branded feature ad from coast-to-coast. And for the company, it allows us to speak with one voice via national media. We will be able to achieve national media buying efficiencies allowing us to get a bigger return from our advertising and promotional spend. It also provides a national platform for future innovation and the ability to cross-promote with various C.P.G. (consumer packaged goods) companies for unique marketing opportunities.”
The basic fluid milk product’s initial launch took place in April. National advertising began in early May, and Mr. Tanner said additional products, including creams, buttermilk and products intended to be served in schools will roll out in June.
“We are putting a significant marketing effort behind this national brand initiative to help ensure its success,” he said. “2015 will be a year of investing in the DairyPure roll-out and we anticipate seeing the incremental opportunities and benefits of this national brand playing out over the long term.”
A challenge facing Dean Foods is promoting DairyPure as a national brand while at the same time trying to maintain the effectiveness of the company’s regional brands.
“… Our regional brands are not going away, so we do not plan to migrate away from them,” Mr. Tanner said. “They will continue to serve as endorsers to DairyPure, so I think that drives that local value that we see and our local consumers to our regional brands. So I think from that perspective, we would expect that DairyPure will continue to drive the same level, if not a bit higher branded gap to private label than what we have seen in the past.”
