Ornua’s global and iconic Kerrygold brand is the number one butter brand in Germany, selling consumers the dream of “Green Isle’s Gold”. Initially brought to the German market in 1973, Kerrygold butter today takes a competitive value share in the country’s butter sector, leaving the competition behind despite its premium price point.
The German butter market has seen solid progress in recent years as butter has begun to recover from its previous negative reputation. At the cost of margarine, spreadable fat mixes in particular have risen to the occasion. Yet, as Kerrygold is feeling the pressure from ambitious competitors, as well as from an array of own-label butters, the time has come for the brand to take the next step in its development in the German market.
After the successful launch of Irish cheddar cheese over a decade ago, Kerrygold is now taking on Germany’s strong but highly fought-over yogurt market. Launched in May 2016, the premium-positioned Kerrygold yogurt (like all Kerrygold offerings) is made from meadow cow’s milk, which are said to spend 10 months out of the year grazing.
The range is comprised of 10 products, including two plain varieties, as well as eight fruit yogurt varieties including strawberry, raspberry, passionfruit, and rhubarb. Described as “particularly creamy”, the fruit yogurts feature a high 10% fat content, combined with an unusually high 15% fruit content.
Image source: Ornua, Kerrygold
A powerful premium concept
Premiumization has become a major pillar of innovation in Germany’s yogurt category, with brands placing greater emphasis on quality ingredients and indulgent formulations. A focus on quality raw ingredients has seen the continuous rise of organic yogurts in recent years. But as organic becomes more and more commonplace in Germany, featured in a quarter of yogurt launches in 2015, manufacturers have come to rely on other, less saturated cues of differentiation.
In the white milk sector, grass-grazing, as an animal-friendly form of farming, is increasingly turning into an image factor, with such claims on new launches shooting up between 2012 and 2015. In yogurt, however, grass-fed claims are still very rare. Prominently highlighting its “meadow milk” ingredient as a central positioning feature, expressed via a large, golden seal on the package label, Kerrygold’s new yogurt readily fills the gap.
With its powerful premium concept, Kerrygold is well set to make an impression with increasingly demanding yogurt consumers in Germany. The brand benefits from strong awareness and popularity among German butter consumers, supporting its venture into the highly competitive yogurt market. Despite a crowded market space, this new yogurt line occupies a valuable niche, as the grass-fed proposition is re-gaining relevance as consumers increasingly look back to traditional, more natural forms of production. Going forward, Mintel predicts that Kerrygold yogurt will likely make its debut in other European markets.
Julia Büch is a Food and Drink Analyst at Mintel. She specialises in delivering insights on issues affecting the German food and drink market, providing analysis across a range of food and drink categories. Previously Trend & Innovation Consultant at Mintel, Julia was responsible for providing tailored product innovation analysis and client support primarily to Mintel’s German speaking clients.
