Contents:

Introduction and Abbreviations Introduction IRI Data Overview Other relevant reports Definition Abbreviations and terms Abbreviations Terms Executive Summary A market with room for growth Yogurt as both health food and indulgence Steady growth from 1998-2003 Yogurt for adults widening its net Dominant players have no foreseeable threats Avenues for promoting yogurt Getting yogurt to the consumer Industry still focuses mainly on dieting women and children What the future has in store for yogurt Market Drivers Targeting women and children Women Figure 1: Female population projections, by age, 1998-2008 Children Figure 2: Population aged 0-19, by age group, 2000-10 Health benefits—importance of calcium Diet trends Figure 3: Incidence of overweight and obese Americans aged 18+, 1994-2002 Convenience, snacking, and indulgence Increasing health awareness Yogurt vs. competing products Market Size & Trends Figure 4: Total U.S. retail sales of yogurt, at current and constant prices, 1998-2003 Graph 1: Total U.S. retail sales of yogurt, at current and constant prices, 1998-2003 Graph 1: Total U.S. retail sales of yogurt, at current and constant prices, 1998-2003 Estimated Wal-Mart yogurt sales Market Segmentation Overview Figure 5: Sales of yogurt, segmented by type, 2001 and 2003 Graph 2: Market share of yogurt segments, 1998-2003 Graph 2: Market share of yogurt segments, 1998-2003 Regular and other yogurt Figure 6: Sales of regular/other yogurt, at current and constant prices, 1998-2003 Light, low-fat, and fat-free yogurt Figure 7: Sales of light/low-fat yogurt, at current and constant prices, 1998-2003 Dessert yogurt Figure 8: Sales of dessert yogurt, at current and constant prices, 1998-2003 Kids’ yogurt Figure 9: Sales of kids’ yogurt, at current and constant prices, 1998-2003 Supply Structure FOREIGN TRADE Imports Figure 10: Total U.S. yogurt imports*, 1999-2003 Exports Figure 11: Total U.S. yogurt exports*, 1999-2003 COMPANIES AND BRANDS Figure 12: Manufacturer sales of yogurt in the U.S., 2001 & 2003 Graph 3: Market share of leading manufacturers of yogurt in the U.S., 2003* Graph 3: Market share of leading manufacturers of yogurt in the U.S., 2003* Figure 13: Manufacturer brand sales of yogurt in the U.S., 2001 and 2003 Manufacturer profiles General Mills, Inc. (Yoplait, Colombo) Kraft Foods, Inc. (Breyers Yogurt) The Dannon Company, Inc. Marigold (Kemp’s Dairy) Stonyfield Farm Advertising & Promotion Dannon General Mills (Yoplait) Stonyfield Farm Retail Distribution Introduction Figure 14: U.S. retail sales of yogurt, by channel, 2001 and 2003 Supermarket operating data Figure 15: Top supermarket operating statistics, latest fiscal year-end Figure 16: Percentage change from latest fiscal year-end versus year prior The Consumer Introduction Incidence of yogurt consumption Figure 17: Incidence of yogurt consumption, April 2004 Figure 18: Incidence of yogurt consumption, by gender, April 2004 Figure 19: Incidence of yogurt consumption, by age, April 2004 Figure 20: Incidence of yogurt consumption, by household income, April 2004 Figure 21: Incidence of yogurt consumption, by presence of children in the household, April 2004 Frequency of yogurt consumption Figure 22: Frequency of yogurt consumption, April 2004 Figure 23: Frequency of yogurt consumption, by gender, April 2004 Figure 24: Frequency of yogurt consumption, by age, April 2004 Occasions for eating yogurt Figure 25: Incidence of eating yogurt at breakfast, April 2004 Figure 26: Incidence of eating yogurt at lunch, April 2004 Figure 27: Incidence of eating yogurt at dinner, April 2004 Figure 28: Incidence of eating yogurt for a snack, April 2004 Graph 4: Incidence of eating yogurt for breakfast, lunch, dinner, or a snack, April 2004 Graph 4: Incidence of eating yogurt for breakfast, lunch, dinner, or a snack, April 2004 Perceived nutrition value of yogurt relative to competing products Figure 29: Perceived nutrition value of yogurt relative to competitor products, April 2004 Figure 30: Perceived nutrition value of yogurt relative to competitor products, by gender, April 2004 Figure 31: Perceived nutrition value of yogurt relative to competitor products, by age, April 2004 Figure 32: Perceived nutrition value of yogurt relative to competitor products, by household income, April 2004 Main factors influencing purchase of yogurt Figure 33: Main purchase factors for yogurt, April 2004 Figure 34: Main purchase factors for yogurt, by gender, April 2004 Figure 35: Main purchase factors for yogurt, by age, April 2004 Figure 36: Main purchase factors for yogurt, by household income, April 2004 Figure 37: Main purchase factors for yogurt, by region, April 2004 Summary Future & Forecast Future Trends Manufacturers will explore other segments Low carb products proliferate, but will likely merge with low calorie More formulations, more healthful additives Prebiotics and probiotics Market Forecast Total Yogurt Figure 38: Forecast of total U.S. retail sales of yogurt, at current and constant prices, 2003-2008 Graph 5: Total U.S. retail sales of yogurt, 1998-2003, and forecast for 2004-2008 Graph 5: Total U.S. retail sales of yogurt, 1998-2003, and forecast for 2004-2008 Regular/other yogurt Figure 39: Forecast of U.S. retail sales of regular/other yogurt, at current and constant prices, 2003-2008 Light, low-fat, and fat-free yogurt Figure 40: Forecast of U.S. retail sales of light/low-fat yogurt, at current and constant prices, 2003-2008 Dessert yogurt Figure 41: Forecast of U.S. retail sales of dessert yogurt, at current and constant prices, 2003-2008 Kids’ yogurt Figure 42: Forecast of U.S. retail sales of kids’ yogurt, at current and constant prices, 2003-2008 Forecast Factors Executive Summary: Key Changes A $2.4-billion market in 2004 Yogurt for adults widening its net Dominant players have no foreseeable threats Avenues for promoting yogurt Getting yogurt to the consumer Yogurt: consumers and cross-promotion What the future has in store for yogurt Market Drivers – Update Health benefits—importance of calcium Diet trends Yogurt vs. competing products Market Size & Trends – Update Figure 43: Total U.S. retail sales of yogurt, at current and constant prices, 1999-2004* Figure 44: Total U.S. retail sales of yogurt, at current and constant prices, 1999-2004* Estimated Wal-Mart yogurt sales Market Segmentation – Update Overview Figure 45: Sales of yogurt, segmented by type, 2002 and 2004* Figure 46: Market share of yogurt segments, 1999-2004* Regular and other yogurt Figure 47: Sales of regular/other yogurt, at current and constant prices, 1999-2004* Impact of IRI adjustments Light, low-fat, and fat-free yogurt Figure 48: Sales of light/low-fat yogurt, at current and constant prices, 1999-2004* Impact of IRI adjustments Dessert yogurt Figure 49: Sales of dessert yogurt, at current and constant prices, 1999-2004* Impact of IRI adjustments Kids’ yogurt Figure 50: Sales of kids’ yogurt, at current and constant prices, 1999-2004* Impact of IRI adjustments Supply Structure – Update COMPANIES AND BRANDS Figure 51: Manufacturer sales of yogurt in the U.S., 2002 & 2004* Figure 52: Market share of leading manufacturers of yogurt in the U.S., 2004* Figure 53: Manufacturer brand sales of yogurt in the U.S., 2002 and 2004* Manufacturer profiles General Mills, Inc. (Yoplait, Colombo) Kraft Foods, Inc. (Breyers Yogurt) The Dannon Company, Inc. Stonyfield Farm Advertising & Promotion – Update Dannon General Mills (Yoplait) Kemps LLC Stonyfield Farm Retail Distribution – Update Figure 54: U.S. retail sales of yogurt, by channel, 2002 and 2004* The Consumer – New Findings Introduction Figure 55: Cohort descriptors for key yogurt product correlation groups Regular yogurt Product correlations Figure 56: Strong product correlations for regular yogurt, May 2003 - April 2004 Cohort groups Promotional opportunities Light, sugar-free, low-fat and non-fat yogurt Product correlations Figure 57: Strong product correlations for light, sugar-free, low- and non-fat yogurt, May 2003 - April 2004 Cohort groups Promotional opportunities Future & Forecast – Update Market Forecast Yogurt Figure 58: Forecast of U.S. sales of yogurt, at current and constant prices, 2004-2009 Regular/other yogurt Figure 59: Forecast of U.S. sales of regular/other yogurt, at current and constant prices, 2004-2009 Light/low-fat yogurt Figure 60: Forecast of U.S. sales of light/low-fat yogurt, at current and constant prices, 2004-2009 Dessert yogurt Figure 61: Forecast of U.S. sales of dessert yogurt, at current and constant prices, 2004-2009 Kids’ yogurt Figure 62: Forecast of U.S. sales of kids’ yogurt, at current and constant prices, 2004-2009 Forecast Factors Appendix: Trade Associations Appendix: New Product Developments CATEGORY REVIEW Figure 63: New product introductions of yogurt, 2001-2004 Bacteria isn’t bad Jan-2004 New product introductions in the dairy category – 2003 Yogurt makers want FDA to demand culture Nov-2003 Drinking your meal Oct-2003 New Product Briefs Kroger: Low Fat Whipped Yogurt Yoplait: Thick & Creamy Yogurt Yoplait: Go-Gurt Repackaging Stonyfield Farm: Low Fat Yogurt Squeezers Horizon Organic: Horizon Organic Low Fat Yogurt Reformulation Horizon Organic: Fat Free Vanilla Organic Yogurt Yoplait: Grande! Large Size Yogurt Yoplait: Go-Gurt Shrek Portable Yogurt Flavor Extensions Yoplait: Yoplait Original Value Size Packaging Simmons Cohorts Figure 23: Cohort descriptors, all groups Appendix: Research Methodology Consumer Research Sampling & Weighting Presentation & Definition Further Analysis Trade Research Informal trade research Formal trade research Desk & Internet Research Sources Definitions Forecasts Appendix: What Is Mintel? Mintel Reports Tracking Information Global New Products Database Comperemedia® Mintel Services POS+ Mintel Consultancy Tracking Information Global New Products Database Comperemedia® Mintel Services POS+ Mintel Con

Companies Mentioned

General Mills, Inc. (Yoplait, Colombo) Kraft Foods, Inc. (Breyers Yogurt) The Dannon Company, Inc. Marigold (Kemp’s Dairy) Stonyfield Farm