Danone’s Too Good & Co. is making a bold move into the creamer market, marking its first foray into a new product category. The renowned dairy giant is set to launch a line of coffee creamers that boast only about 3 grams of sugar per serving, significantly lower than the leading brands in the market which contain about 5 grams of sugar. The new creamer line will feature three enticing flavors: sweet cream, roasted vanilla, and a seasonal lavender variant.
Olivia Sanchez, the Senior Vice President of Creamers for Danone North America, explained that the decision to expand Too Good into the creamer market was driven by the brand’s reputation for low sugar content and usage of real, natural ingredients. A recent survey conducted by Kantar and Danone revealed that a majority of consumers prefer creamers made with natural ingredients, and a significant portion are actively seeking to reduce their sugar intake.
“We have all the expertise in the dairy yogurt aisle, and this expansion into coffee creamers was just a natural step for us,” Sanchez stated in an interview. “We felt that it was a unique opportunity to leverage our brand’s strengths and cater to the evolving preferences of consumers.”
Danone’s latest move will put them in direct competition with Chobani, a leading player in the creamer market known for its use of natural, non-GMO ingredients and avoidance of artificial additives. Chobani has been steadily gaining market share, currently holding 11.5% of the $5 billion category, up from 5.5% just a year ago.
The decision to introduce Too Good creamers aligns with data showing that a significant portion of refrigerated creamer buyers also purchase yogurt. By tapping into this overlap, Danone aims to retain more customers within its growing brand ecosystem. Nearly 57% of Too Good shoppers already buy refrigerated creamers, indicating a strong potential for cross-promotion and brand loyalty.
The yogurt brand, initially launched by Danone in 2020 as Two Good, has been rebranded to encompass a wider product range that includes offerings with varying sugar content. The success of Too Good in the yogurt market has paved the way for further expansions, such as the recent introduction of pouches aimed at school-age children.
Danone’s expertise in the creamer space is well-established, with popular brands like International Delight, Dunkin’, and Silk under its umbrella. The company’s investment in expanding production facilities to meet the growing demand for coffee and creamer products underscores its commitment to innovation and customer satisfaction.
As the demand for premium coffee experiences at home continues to rise, creamers have become a staple for consumers looking to personalize their drinks. Gen Z and millennial shoppers, in particular, have embraced unique flavors and innovations like cold foams to elevate their coffee rituals, presenting ample growth opportunities for companies like Danone.
In a competitive landscape where consumers prioritize better-for-you products, Too Good creamers stand out for their lower sugar content and clean label credentials. Sanchez emphasized that the brand’s commitment to offering a healthier alternative will set it apart from the competition and appeal to health-conscious consumers.
Overall, Danone’s entry into the creamer market with Too Good signifies a strategic move to capitalize on evolving consumer preferences and strengthen its position as a leader in the dairy industry. With a focus on quality ingredients, innovative flavors, and consumer wellness, the brand is poised to make a significant impact in the competitive creamer market.
