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Australia Edition 1

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THE MARKET There are

THE MARKET There are scores of aggressiVely marketed beverages available to Australians today. But the best seller, surpriSingly enough, IS • milk. Milk is, of course, a popular drink in its natural, mod1fied and rlavoured fonns, but fresil milk 1s also the staple Ingredient for a range of other popular drury products. The market for yogurt. cheese. fromage frais. custard, cottage cheese. buttermilk and other such value added da1ry products is growing steadily every year. Part of the reason for th1s is the rncreas1ngly multicultural make-up of Australian soc1ety. wl1ict1 has resulted In wider acceptance of new and different food and beverage styles as eatrng and drinking hab•ts change. Dairy Farmers is the nat1onal leader 1n the mrlk market with approximately 32% of the national market. and also leads in U1e yogun market 'v\~lh a 26% st1are nationally. ACHIEVEMENTS Dairy Farmers is the industry leader in the Innovative development of value added dairy foods under the Dairy Farmers brand and Its various subbrands. Dairy Farmers was responsJt)le, for example, for producing Australia's first truited yogurt (Ski). II also produced Austraha's first longhfe 1111lk (Dany Farmers). as well as the country's f1rst modif:ed milk (Hi-Lo) and the world's f1rst 'no cl1olesterol' milk (Dairy Farmers Farmers Best). And it was Dairy Farmers aga1n that Introduced the first split pack yogurt (Ski Double Up). Many of these have been copied subsequently by competitors as 'me too' products designed to capture a slice of tile marketshare of the Dairy Farmers originals. Dairy Farmers 1s the only company in any grocery category in Australia to have won Most Successful New Product awards tllree limes over three consecutive years. Th1s coveted award 1s made by the respected journal 'Foodweek' and the winner is chosen after a survey of the views of senior buyers trom Australia's major chaiPs and independent wholesalers 1ncluding Woolworths, Coles. Jewel. Franklins and Foodland. The Most Successful New Product awards were presented to Da1ry Farmers Farmers Best, Cadbury Da1ry Mousse and Ski Double Up. Whether answenng t11e call for a 'no cholesterol' milk wit11 the international groundbreaku'lg Farmers Best, or rernvent1ng yogurt as Cl convenient, healthy and tasty dessert. Da1ry Farmers has a'Nvays been a quiet but consistent achrever. At a lime when the Atrstralian yogurt market was rawly static. Dairy Farmers 1ntroduced Sk• Double Up to the nation. Ski Double Up hit the market boasting a smooth, mild yogurt style us1ng the very best acidophilus yogurt culture u1 conjunction w1th the hrghest quality vanilla. Presented in a unique double compartment pack and with real fruit flavour, Dairy Farmers' Ski Double Up became a run-away success wl1en it was launched 111 October 1993. Ski Double Up boosted the overall Australian yogurt market and won awards wtually at will. W th1n 1\s first srx months of release it was recognised by the grocery wholesale and retail industries as well as the darry rndustry with new awards for Best New Product Award and for lnnovatton from Foodweek magazine. and from the Dairy Industry Assocratron of Australia. Consumers loved it And they loved Gadbury Dairy Mousse. another Darry Farmers product with a confectionery brand name. This was an unprecedented dairy dessert success which Dairy Farmers produced 1n a JOint venture with Cadbury Schweppes. With Dairy Farmers the leader in research and development of qual1ty dairy products (and hav1ng one of the country's largest and best cold handling systems) the Gadbury Mousse joint venture was a potent market combu1at1on. Cadbu'Y Mousse won a string of retatl and datry 1ndustry awards from day one and Slnglehandedly expanded the whole da1ry dessert market. HISTORY Dairy Farmers, one of Australia's oldest foOd and beverage Icons. was bom a ye..ar before Ausiralia became a Federation. On a hot January day 111 1900, seventy New South Wales da1ry farmers resolved lo 'form a milk company upon pure cooperat•ve lines' which would eliminate the mrddleman's costs to consu1ners and give the dairy farmers more say 1n the l1andling of their output. At the end of the day I he Dairy Fanners Cooperative Milk Company was formed. It was destined to become the largest cooperat1ve of 1\s kind 1n the Southern Hem1sphere. Without ice. mlk could not be transported over long diStances. Enthusiasllcally the new Dairy Farmers Coop members spent all the1r cap1tal on a live-tonne refrigerator. milk tanks. horses and carts. Wrthin a decade the Da1ry Farmers Cooperative Milk Company was in proht and rn 1912 paid its first d1vidend At the time. the newly formed Coop handled less than one million litres of milk a year and employed 100 workers. a !elf cry from today's operation. In 1989 Dairy Fam~ers merged with two other long established New South Wales dairy cooperatrves, Hunter Valley and Shoalhaven, and the new ent1ty was called Australian Cooperative FOOds. This group was tnen jOined by two Queensland dairy cooperat1ve companies, Queensco-Unity Dairy Foods Cooperative Association Ltd (QUO) and Atherton Tableland Cooperative Da1ry Association Umited (Malanda). In 1996 thrs super-cooperative readopted the name Dairy Farmers, the name of its lead1ng brand and of its found•ng cooperative, to cover all of its operations. Today, Dairy Farmers is the nation's number one retail da1ry producer. It has the broadest reta11 range of any dairy company 1n the country and is Australia's largest manufacturer of value added da1ry products. Producing 1039 million lit res of raw milh. annually to supply 40% of Australia's total milk supply, Dairy Farmers employs over 2 700 people rn city centres, regional capitals and rural Australia. The cooperatNe produces a range of quality da1ry products under the marn brand name of Da1ry Farmers as well as other brand names 1ncludrng 42

Sk1, OAK. Fnrn'CIS Best. CrutSe Jncaranoa. Ma and1, Bornhoften Unly, Novvra Rcber.son, Valley l'vi(l1,l, Cn,il)litV Mousse, Wetghl Watchers and Ba1Flt1Ce. W1th n lor g history of actucvernent betund 11. Da ry F.umers IS , tr eC1u1vocally tre most u1nova:rve d.:11ry company ill Austrnlia. THE PRODUCT oa,ry Farmers Full Cream MilK IS Hie purest. fresl'est homcxJen1sed anti pasteurised milk that money cnn buy. It is tl'1o t ngsh1p oroduct for tne Da ry Fnw·ers l)rWld anll accour'ts tor 60% of 0.:~-ry F(lm ors total rnilh volumo [tnclud ng modified nn.1 fi."Jvourct1rnlks}. D·111y Farmers Full Cream M k IS avalnble r at1011.1 'iy 111 erther fresh or UHT fonn '.th !Ota annu:~l &'lies 1n excess o' 0 rnilhon. tt ts postt cne

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