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Axios
06-05-2025
- Health
- Axios
Move over, oat milk: Lactose-free dairy is having a moment
The rising star of the dairy aisle: lactose-free milk, which is now more popular than plant-based alternatives. Why it matters: Health-conscious consumers — many of them lactose intolerant — are redefining what "healthy milk" means and moving away from almond and oat drinks. By the numbers: Sales of lactose-free and lactose-reduced dairy milk (think: brands Fairlife and Lactaid) grew about 14% in the past year, and have driven dairy's overall comeback, per NielsenIQ data shared with Axios. Meanwhile, plant-based milk sales have dropped 5% year over year — "very counter to what we've seen for many years," says Chris Costagli, NIQ VP of food insights and a dairy industry veteran. Catch up quick: Soy milk led the alt-milk charge in the '90s, followed by almond (still the category leader despite a recent dip) and oat. What's happening: Consumers are returning to cow's milk because they're getting wise to the fact that there are additives like texturizers in many plant-based alternatives, Costagli says. Plus, lactose-free dairy milk offers inherent protein and calcium, which is why dietitian Tamara Duker Freuman says she's switched lactose-intolerant patients to it. And taste is a factor. Unlike plant-based milks, dairy milk tends to froth better, taste creamier and not curdle in hot beverages. Between the lines: Lactose-free dairy milk is typically cow's milk with an added enzyme that breaks down the lactose. Zoom in: Lactose-free milk Fairlife, which is filtered to have high protein and low sugar, surpassed $1 billion in annual retail sales in early 2022. Fairlife's rise hasn't been without controversy: There's a Fairlife class action lawsuit over new animal cruelty allegations. Fairlife didn't respond to Axios' request for comment about this. Yes, but: There's still room for plant-based milk in a healthy diet — especially if you opt for varieties without carrageenan or added gums, Freuman says. The bottom line: Whether you're pouring oat, almond or ultra-filtered cow's milk, today's consumers are getting smarter about what's actually in the carton.
Yahoo
19-04-2025
- Business
- Yahoo
3 Big Numbers: NACS highlights foodservice progress
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. 3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry. Foodservice is big business for c-stores. Some retailers are adding new items to their menus while others, like Onvo or Refuel, are adding entire programs. So it's no wonder that foodservice was the topic of discussion at the NACS State of the Industry event in Dallas earlier this month. But there's more to it than just fresh meals. From packs of beer to a candy bar at the checkout, c-stores run on all things food and drink. In today's '3 Big Numbers,' we look at how much of c-stores' inside sales come from food and beverages, as well as how customers view these menus alongside QSRs. The percentage of in-store sales at c-stores that come from foodservice. Foodservice makes up more than a quarter of sales at c-stores, NACS reported. This category includes prepared food, commissary and — though it might seem counterintuitive — hot, cold and frozen dispensed beverages. Packaged beverages are separate, and we'll get to them in a moment. While foodservice made up 28.7% of overall inside sales in 2024, it accounted for almost 40% of in-store gross margin dollars, meaning the category offers stores above-average margins. Prepared food accounted for the largest share of foodservice sales at 68.4%. The percentage of customers who believe c-stores are just as capable of offering fresh, quality prepared food as fast-food restaurants. While more and more people are willing to eat at c-stores as retailers shake off the 'gas station food' reputation, there's still a ways to go. Case in point — only 18% of people believe c-stores are just as capable of offering fresh, quality prepared food as QSRs, according to a presentation by Chris Costagli, vice president and food insights lead at NIQ. What can c-stores do to bridge the gap? In addition to keeping quality and value in mind, retailers can leverage messaging around nostalgia, trustworthiness, convenience and health benefits to draw in more diners, Costagli said. Limited-time offers also can help. Costagli noted that 80% of QSR shoppers said it's very important to them to see LTOs on the menu. The percentage of in-store sales at c-stores that come from nonalcoholic packaged beverages. Now let's look at nonalcoholic packaged beverages, which made up just under 18% of in-store sales last year. While these beverages aren't as profitable as foodservice, they nonetheless made up 21.2% of gross profit dollars last year. But these sodas and energy drinks aren't just strong on their own. They also offer synergy with other categories inside the store. Over a third of customers who purchased packaged beverages bought prepared food during the same trip, according to the NACS Convenience Voices program. The average c-store sells 335 types of packaged beverages, according to separate NACS data. This could give c-stores an easy way to boost value, tying that huge variety of drinks already on site to value meals. Recommended Reading 10 notable c-store foodservice launches this past month Sign in to access your portfolio
