Diversifying Product Portfolio
Drinkable Yogurt for Kids (Clean label and no added sugar) Based on processor needs, CDIC is supporting a project at Cal Poly DPTC to develop drinkable 6 oz yogurt formulations targeting children aged 5-13. Market leaders in this space have formulations with added sugar or long lists of ingredients, but CDIC identified a gap around a lactose-free and “clean label” yogurt formulation. This project builds on previous work around “fruity milks” (a project that concluded earlier this year) to develop various prototypes and concepts that processors can use to launch innovative, new products. The project kicked off in October and will conclude early 2026. Functional Milk (“Super Milk” with protein and added fiber) Building on previous learnings from Innovation projects on added fiber in milks, CDIC kicked off a project with Chapman University in Q4 2025. The goal of this project is to develop multiple base formulations of functional lactose-free milks featuring high protein and >10% Daily Value of fiber. Multiple protein sources will be utilized to ensure that base formulations are appropriate for both smaller processors & companies that are restricted to using milk proteins powders to fortify protein content, as well as larger processors that have access to ultrafiltered milk in large volume.
Fiber Milks 2.0 – CDIC continues to work with CalPoly DPTC to develop and refine the concepts during Q4 2025. Project proposals were submitted to DMI for funding, and CDIC helped review proposal and is working on scope of work for continued work highlighting the opportunity for fiber-added dairy products. This work will build on previous applications in fluid milk to highlight potential in other high growth dairy products.
Functional Milk Beverage for Night – Rest & Recharge
In collaboration with a processor, CDIC kicked off a new project in Q4 with Chapman University to develop base formulations for functional milk beverages with rest & relaxation as a targeted use occasion. Recent market trends show consumers are interested in functional beverages, and there is a great opportunity for dairy to be used in these products. CDIC funded an intern in summer 2025 to survey functional ingredients such as L-theanine, GABA, and more and develop a short list of promising options approved for use in dairy products. This project will build on that work to develop concepts to present to processors in 2026.
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