Flavoured milk sales fall in shift away from convenience

Sales of flavoured milk at convenience outlets on the one hand, and supermarkets on the other, are changing. The picture this paints of how Australians’ habits during the coronavirus pandemic is fascinating.

Big M is a particularly iconic flavoured milk brand, but consumers are not enjoying as much of the treat more broadly as they once did. Main picture: Dairy Australia

AUSTRALIANS aren’t swigging a chocolate Big M from a milk bar or downing a petrol station ice coffee like they used to.

The nation’s love affair with flavoured milk has been put on hold due to coronavirus restrictions, with sales of the lactose treat falling through the floor in 2019-20.

Figures released by Dairy Australia show ‘convenience’ sales of flavoured milk — purchased at petrol stations, city kiosks, railway stalls and other ‘on-the-go’ locations — dropped 19 per cent last financial year.

Purchasing power was redirected to the supermarket refrigerator as many traditional commuters were forced to work from home — grocery sales of flavoured milk bounced up by 6 per cent during the same period.

But Dairy Australia analyst Sofia Omstedt said the convenience-to-supermarket shift wasn’t enough — overall flavoured milk sales in 2019-20 declined 3 per cent.

online artwork nov 18 milk sales

“Flavoured milk is a great convenience product but (coronavirus restrictions) mean we aren’t moving around as much as we were this time last year, so sales have changed as a result,” she said.

“Consumers have shifted their purchases of many products away from single items to bulk as they work from home. That means instead of buying one or two flavoured milk items a week, they’re buying a larger bottle to drink at home. We’ve seen that trend not just in flavoured milk but with flavoured yoghurts and individual cheese packs as well.”

Flavoured milk is a key profit driver for the industry due to its relatively high average

retail price, according to the latest Dairy Australia situation and outlook report.

Data from Nielsen Homescan included in the report revealed flavoured milk sold for $3.45 per litre on average, in the 12 months to August, while fresh white milk was sold for $1.50 per litre. Flavoured milk accounts for about 20 per cent of the retail value of fresh milk, while only making up nine per cent of the volume.

United Dairyfarmers of Victoria president Paul Mumford said flavoured milk sales would slowly return to pre-pandemic trends once more Australians returned to their traditional workplaces.

“The (coronavirus) restrictions have altered the way people spend their money on a lot of things, not just dairy,” he said.

“We’re slowly returning to normal; more people are travelling around. The restrictions have been eased in Melbourne in recent weeks and there’s more cars on the road there and in regional Victoria. Flavoured milk sales will go back to what they were when things get back on track, as we’re seeing now.”

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