Why did the category fare so poorly? The largest segment recorded flat growth in a year-versus-year basis but, making matters worse, regular/other yogurt products actually saw sales decline 5.0% between 2002 and 2004, according to Mintel's analysis of Information Resources Inc. (IRI, Chicago) data. With this segment accounting for 51.1% of the yogurt category, such a fall hindered even notable growth in the other sectors.
Mintel also attributes the minimal market growth to “the lack of growth in the niche segments (desserts and kids' yogurts)” but, considering these comprise only 15.5% of the market, it is difficult to imagine even a phenomenal performance impacting the category as a whole. As it is, those segments appeared to perform reasonably well between 2002 and 2004. Admittedly, sales of kids' yogurts dropped 0.3% to $321 million, due in no small part to declines in sales of Dannon's (Allentown, Pa.) Danimals and Sprinklins, as well as Yoplait's (General Mills, Minneapolis) Yumsters. In fact, Mintel reports Stonyfield Farm's (Londonderry, N.H.) YoBaby was the only child-positioned yogurt to record a “notable” increase in sales in 2004, finishing the year with $29 million in sales, according to Mintel/IRI data.