Strong Consumer Demand Pushes Greek Yogurt Into A Dairy-Aisle Battlefield

Fueled by rising demand for Greek varieties, yogurt finished 2010 as one of the fastest-growing grocery categories, according to new figures from SymphonyIRI. But the battle for dominance is just beginning, as yogurt upstarts and stalwarts pump new money into big marketing campaigns, seizing on the growing American appetite for rich, creamy, protein-packed blends.

Greek yogurt "will be the battlefield in the dairy case — both in advertising and in store," said food industry analyst Phil Lempert, who runs the site Supermarket Guru.

Amid surging competition, Fage, the brand credited with jump-starting the Greek yogurt trend in the U.S. in 1998, is launching its first national TV campaign, including a 45-second spot by Interpublic Group of Cos.' Mullen that uses poetry to position yogurt as an "extraordinary sensory experience." The effort follows a campaign that rolled out last month by Chobani, which last year shot past Fage to claim roughly 45% of the Greek market, according to market research group Mintel.

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