There's a Greek uprising taking place along the dairy aisle. A specialty item just a few years ago, creamy Greek-style yogurt has turned into a supermarket staple. The trend has food giants such as Kraft Foods (KFT) and General Mills (GIS) trying to topple a pair of tiny dairy makers who until recently had the market mostly to themselves.
Kraft Foods, which abandoned yogurt entirely in 2004, began selling its new Athenos brand Greek yogurt at Wal-Mart Stores in September and plans to expand to other major grocers nationally by early next year. General Mills introduced Yoplait Greek yogurt in March. Both are chasing a massive market share lead enjoyed by Greek yogurt brands Chobani and Fage.
Greek yogurt—made by straining out whey and water from traditional yogurt—has been around for centuries. With a thick consistency and a sour flavor often balanced with fruit or honey, the Greek variety has won plaudits from nutritionists for its high protein and low fat content. That combination has caught fire with health-conscious consumers: Greek yogurt sales have doubled every year since 2006, according to Marshall Hyzdu, brand manager for Kraft's Athenos line, a leading maker of feta cheese and hummus. "Our consumers were begging us to launch it," he says.
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