Milk's comeback is great news for Des Moines' AE Dairy
Why it matters: The family-owned operation is preparing to celebrate its centennial in 2030, despite national dairy turbulence.
The big picture: Milk consumption has declined for decades, partly driven by shifting diet trends — from the fat-free craze of the '90s to the rise of plant-based alternatives in the 2000s.
But last year, whole milk sales rose for just the second time since the 1970s, per market research firm Circana.
Plant milk consumption (which the Ericksons call "plant juice") went down 5.9% amid concerns over added sugars and ultra-processed ingredients.
What they're saying: AE Dairy benefits from a primarily Iowan customer base, where trends move more slowly in comparison to the coasts, Erickson Brown says.
Its Des Moines plant distributes mainly around Iowa and neighboring areas like Kansas City.
Zoom in: Now that dairy is "in" again, AE Dairy is experimenting with high-protein products.
It recently released a protein-enhanced yogurt and "Hi, Protein!" milk and chocolate milk.
Dutch Bros, a popular coffee chain that's popped off on TikTok, is using AE Dairy milk for its protein coffees.
Cottage cheese demand has also prompted the company to release new flavors.
Yes, but: In 2023, the Iowa Legislature legalized raw milk sales, which CFO Warren Erickson "wouldn't recommend" consuming.
The bottom line: "If you're asking us, milk has always had the natural story, the wholesomeness, the health benefits and the nourishment. It's always been a centerpiece of Iowa," Erickson Brown says.
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