US Business Development Executive Summary
1. Dairy Category Performance & Industry Updates • Retail : Pricing inflation at the retail shelf is around 3% as the year ends, though we can’t forget that compounded inflation is still +30% than five years ago. Consumer confidence is historically low, with uncertainty tightening consumers’ wallets. Dairy growth continues to be a sweet spot though with strong growth nationally, with California outpacing the country in cottage cheese, butter and sour cream compared to last year. Seasonally, the dips in ice cream and novelties were expected but we are seeing softening in indulgent segments overall. • Foodservice : The industry remains soft despite 3–4% projected sales growth for 2025 (driven by inflation and menu price increases), with real growth flat to slightly down; tariffs and government shutdown pose minimal impact so far. Research suggests consumers say they are planning to spend less on restaurants in the next few months. 2. Promotions Overview • Retail: The last quarter of the year is filled with seasonal activations across the broader California market, specific retailers (Mollie Stone’s, Stater Bros, Sprouts, Kroger), and Instacart. These programs historically drive double-digit incremental sales lifts during holiday periods with dairy’s high relevance during the last few months of the year. • Foodservice (Pizza): With the results now finalized – the Mountain Mike’s Aloha Summer LTO generated $1MM in topline sales, with 950K lbs. of California mozzarella (+28% case growth). After the 2025 Real California Pizza Contest, winner Tore Trupiano of Mangia e Bevi has rolled out their grand prize Creamery Crown pizza driving incremental cheese usage. Sales contests are an effective tool for driving incremental California dairy volume, with the foodservice team deploying educational tours for top sales earners with key distributors in the last quarter. Support for CDI’s UHT half and half and heavy cream, along with DFAs mozzarella has been committed. • The retail team focused on new distribution support at-shelf within the Club channel, across private label products, as well as specialty cheese as the ramp up to the holidays begins. With tours planned for early 2026, the team continues to build relationships with key retailers who can move the needle. 3. New Distribution & Relationship Building • Excelerator Program Evolution & Cohort: CMAB’s 7th-year Excelerator now includes two tracks—growth-stage and incubator—supporting 14 innovative dairy companies. The cohort kicked off with an immersive experience including tours at Point Reyes Farmstead, retail insights at Mollie Stone’s, and a digital commerce session at Instacart—building alignment and showcasing California’s dairy ecosystem. The pitch event is December 11, where finalists will compete for $30K in marketing support and a $100K grand prize in 2026. • Universities Update: CMAB’s fall university programs are mid-cycle, engaging over 100 students across multiple disciplines to develop more than 20 innovative dairy concepts. Final pitch events will take place in early December at Cal Poly SLO, Fresno State, Cal Poly Pomona, and Chapman University. Student teams are creating products in functional beverages, snacks, value-added milks, frozen novelties, and globally inspired dairy formats, with top concepts evaluated for advancement into CMAB’s innovation pipeline. These programs strengthen California’s leadership in dairy entrepreneurship and provide a talent pool for future industry hires. 4. Innovation & Entrepreneurship •
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