Milk’s Lead Rises as Plant-Based Beverages Sink

The final numbers are in, and they confirm what we’ve anticipated all year. In 2023, consumers emphatically turned away from plant-based beverages at an accelerating rate that caused the category to lose market share to milk, where whole milk and lactose-free varieties are thriving and surpassing their competitors.

The numbers give even more reason to put a stake in all that overprocessed hype – and to push even harder for integrity in labeling beverages that are being abandoned by consumers tired of inferior alternatives to dairy.

With full year data now available from Circana Inc., which tracks grocery-store spending, plant-based beverage consumption in 2023 fell 6.6 percent to 337.7 million gallons. It’s the second straight year of declines and the lowest consumption since 2019.



Sales volumes for almond drinks, the biggest plant-based category, fell 10 percent, and the soy beverages that vegan activists weirdly want in school lunches declined 8 percent. Even the once-Next-Big-Thing, oats, only rose 1.4 percent last year.

Sorry, Oatly – the froth has left your latte, and all that’s left is the drain.

Meanwhile, fluid milk – the real kind – keeps chugging away. To be fair, like plant-based, its consumption also declined, and like plant-based, its sales volume number starts with a 3. However, that 3.137 is followed by the word billion – not million, which is where plant-based is stuck – and the drop was 2.7 percent, less than half the rate of decline for plant-based beverages. That means fluid milk last year lengthened its lead over plant-based. In 2022, fluid milk had 89.9 percent of the pie. In 2023, it rose to 90.3 percent.

Beyond the overall number, fluid milk had more good news. Sales of whole milk, the most popular variety (and the one we need back in schools), rose last year, and lactose-free milk – the one tailor-made for people with dairy sensitivities – jumped 6.7 percent to 239.2 million gallons. With that, lactose-free milk surpassed almonds; it’s now a bigger category on its own than any plant-based alternative.



(You’ll hear a lot about that in the next year. We’ll make certain of it.)

The idea that milk was losing market share because consumers were turning to plant-based alternatives was always off-base. Now, it’s just a lie. And the decline of plant-based beverage isn’t likely to be an aberration: Once the initial hype is gone, and the sustainability claims are debunked, and the nutrition fallacies are exposed, what, exactly, does over-processed sugar water have going for it?

Oh, right, their misleading labels.

For now.

NMPF’s Doud Discusses Dairy’s Future

Incoming NMPF President & CEO Gregg Doud explains NMPF’s role in Washington policy formulation and dairy farmer priorities, including a new farm bill, Federal Milk Marketing Order modernization, integrity in plant-based labeling and dietary guidelines that maximize the benefits of dairy, in an interview with RFD-TV. He also emphasized the importance of international trade and global issues to U.S. dairy’s future. “We need to look five, 10 years ahead and see what this industry needs,” he said.

NMPF’s Bjerga on Why Milk’s Widening Its Lead Over Plant-Based Beverages

NMPF Senior Vice President of Communications discusses the shifting consumer preference toward milk over plant-based beverages, plus NMPF’s latest efforts toward labeling integrity, on RFD-TV. Consumer data shows consumption of plant-based drinks falling this year, while milk sales are remaining more stable. Meanwhile, NMPF has submitted comments to FDA urging it to enforce its Standard of Identity that clearly state that milk is an animal product.

 

NMPF’s Detlefsen on the Scourge of Lab-Based Milk Imposters

 

NMPF Chief Counsel Clay Detlefsen discusses the even more urgent need for the U.S. Food and Drug Administration to enforce beverage standards of identity as lab-based milk imposters try to use dairy terms in the marketplace. “Milk has got 13 essential nutrients. It’s got 400 different fatty acids. It’s got two categories of proteins, casein and whey, numerous micronutrients,” he said. “You cannot replicate that in a laboratory or elsewhere. I mean milk is milk. It’s natural, and it’s good for you. And you can’t duplicate that in the lab.” Detlefsen spoke in an interview with the National Association of Farm Broadcasters.

NMPF’s Bjerga on Fair Nutrition Access in Federal Programs

 

NMPF Senior Vice President of Communications Alan Bjerga talks about the importance of equal nutrition for all — and how milk in both regular and lactose-free options can assist in that goal — is a bedrock principle in federal nutrition programs. Bjerga also updates on the latest in NMPF’s comment campaign regarding the FDA’s draft guidance for proper terminology in plant-based beverages, discussing the topics in an interview with RFD-TV.

FDA Guidance an Incomplete Win for Dairy

By Alan Bjerga, Senior Vice President, Communications, National Milk Producers Federation 

FDA’s split-decision draft guidance on plant-based beverage labeling offered last month gave everyone something to be mad about. For dairy producers and consumers, the fact the agency would allow plant-based beverages to call themselves “milk” is unacceptable. For plant-based beverage manufacturers, guidance that they should disclose their nutritional inferiorities prominently on the packaging makes using a dairy term much less attractive. And even though the guidance is voluntary — and thus in theory could be ignored — companies that want to stay on FDA’s good side and avoid being called out on their noncompliance by dairy’s defenders have the incentive to either follow the guidance or sidestep the issue completely by avoiding dairy terms altogether. Either way, consumers win.That makes dairy the net winner in the decision, however incomplete it may be. Crucially, FDA is accepting the National Milk Producers Federation’s core argument — that ample consumer research shows that consumers are confused over the nutritional content of plant-based beverages and the need for labeling. And that provides a great opportunity for dairy and consumers to make progress in achieving the logical outcome of that acceptance — ending altogether the mislabeling of plant-based beverages that’s plagued the U.S. market for more than four decades.

It’s much easier to win a debate when the premise of the debate is set on your own terms. Decades of calling on the FDA to enforce its own standard of identity for milk mostly fell on deaf ears. Even if dairy’s argument was clearly correct, FDA could choose to do nothing about it, and doing nothing was a task in which FDA excelled.

As plant-based beverages proliferated and it became clear that stolen dairy terms encouraged consumers to assume an incorrect nutritional profile for these products, nutritional confusion among consumers has become a public health issue the agency simply can’t ignore. And to its credit, FDA’s guidance, for all its flaws, is an attempt to seriously address a problem it began to acknowledge only in the past half-decade.

But now that the agency has acknowledged the problems and offered guidance, it will be critical to keep up the pressure to follow this progress to a successful conclusion. Consumers, dairy producers, and their allies need to make sure FDA’s approach isn’t weakened, and then to make sure that now that our analysis of the problem has been accepted, the logical solution of that analysis – limiting dairy terms only to dairy products – is the eventual outcome.

On the first point, FDA has opened its guidance up for public comment. NMPF has set up its own simple guide on how to submit a comment. Through this form, members of the public can either personalize their own message to FDA or have access to resources that will help them write their own comments from scratch.

On the second point, we are advocating for congressional passage of the DAIRY PRIDE Act, which has been introduced in the U.S. Senate and House of Representatives. The legislation would require FDA to enforce its standard of identity for milk, solving the problem at its root.

The fight for labeling integrity has taken patience and persistence. But progress is real, and with momentum on our side, we can make a real difference in the marketplace for public health. Please consider joining us in this effort.


This column originally appeared in Hoard’s Dairyman Intel on March 20, 2023.

NMPF’s Bjerga on Plant-Based vs. Lab-Based Labeling Concerns

 

NMPF Senior Vice President of Communications Alan Bjerga discusses the differing challenges of plant-based beverages that use dairy terms vs. lab-created dairy alternatives using a replicated dairy protein, in an interview with WEKZ radio in Janesville, WI. While plant-based beverages have widely divergent nutritional profiles, lab-based dairy does incorporate actual dairy — but doesn’t duplicate the complex interactions and processes that create a true dairy product.

NMPF’s Bjerga on March Board Meeting

 

NMPF Senior Vice President of Communications Alan Bjerga discusses the organization’s recently concluded board of directors in Arlington, VA in an interview with RFD-TV. NMPF’s board unanimously approved a proposal to modernize the Federal Milk Marketing Order system to benefit farmers and better reflect today’s dairy industry. NMPF board members also discussed the ongoing fight against plant-based milk imitators, as well as advances in animal care and sustainability.

NMPF’s Bjerga on Next Steps on Plant-Based Labeling

 

NMPF Senior Vice President for Communications Alan Bjerga discusses next steps in the effort to bring transparency to plant-based beverage labeling in an interview with the National Association of Farm Broadcasters. While the FDA’s proposed guidance accepts dairy’s core argument — that beverages that falsely call themselves “milk” falsely imply a similar nutritional profile — the acceptance of such terms, even with disclaimers, still falls short of recognizing FDA’s own standards of identity and ending the confusion once and for all. That makes efforts such as congressional passage of the DAIRY PRIDE Act all the more essential, he said.

FDA Guidance On Plant-Based Beverages’ Use of Dairy Terms is a First Step, NMPF Says While Calling for Complete Transparency in Labeling

In response to today’s FDA guidance on plant-based beverages, which guides manufacturers of plant-based beverages to disclose their nutrient inferiority and acknowledges the public health concern of nutritional confusion over such beverages, the National Milk Producers Federation, which has led the fight for labeling transparency, released the following statement:

From Jim Mulhern, President and CEO of the National Milk Producers Federation:

“Today’s FDA announcement is a step toward labeling integrity for consumers of dairy products, even as it falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology. By acknowledging both the utter lack of nutritional standards prevalent in plant-based beverages and the confusion over nutritional value that’s prevailed in the marketplace because of the unlawful use of dairy terms, FDA’s proposed guidance today will provide greater transparency that’s sorely needed for consumers to make informed choices.

“Still, the decision to permit such beverages to continue inappropriately using dairy terminology violates FDA’s own standards of identity, which clearly define dairy terms as animal-based products. We reject the agency’s circular logic that FDA’s past labeling enforcement inaction now justifies labeling such beverages “milk” by designating a common and usual name. Past inaction is poor precedent to justify present and future inaction.

“Because FDA’s proposed guidance is meaningless without action, enforcement will be necessary to ensure that this limited progress is reflected on grocery shelves. For these reasons, we will continue our work in Congress to pass the DAIRY PRIDE Act, which would direct FDA to enforce its own rules and clarify that dairy terms are for true dairy products, not plant-based imposters.

“FDA’s last three Senate-confirmed commissioners — from both parties — have each acknowledged the problem of consumer confusion over nutritional content created by beverage labels that use dairy terms to imply qualities they simply don’t have. Medical groups, including the American Academy of Pediatrics, concur with this concern. Today’s proposed guidance at least recognizes this reality: That nutritionally inconsistent concoctions of water, factory-processed powders and other additives simply don’t contain the same nutrition that milk provides.

“As the agency entrusted with protecting consumers from mislabeled products, FDA’s action here takes a step in that direction. And after more than four decades of efforts that have often fallen on deaf ears, we appreciate that today’s agency leadership is beginning to treat plant-based beverage labeling more like the critical issue of nutrition and agency integrity that it is.

“We also would like to thank consumers, who sales data show drank fewer fake dairy beverages in 2022 than in 2021, part of a broader awakening to the bogus marketing of fake milk manufacturers that have been accepted uncritically for far too long. Despite the misinformation spun in advertisements and media, consumers are seeing through the marketing and recognizing these beverages for the fakes that they are. But consumers shouldn’t have to make choices in a marketplace that’s less than fully transparent, and until the federal government fully lives up to its mission, NMPF will continue to lead the battle for labeling transparency.”

For more NMPF discussion of the misleading use of dairy terms on plant-based beverages, see:

https://www.nmpf.org/the-plant-based-lie-that-needs-to-die/

https://www.nmpf.org/say-it-loud-say-it-clear-the-plant-based-beverage-bust-is-here/

https://www.nmpf.org/dairy-wins-on-facts-in-looming-lab-based-labeling-battle/

https://www.nmpf.org/plant-based-higher-cost-lower-quality-be-sure-to-tell-your-barista/

https://www.nmpf.org/fdas-proven-it-can-do-its-job-on-fake-milk-it-can-do-it-again/

https://www.nmpf.org/dairy-defined-lactose-free-milk-is-growing-faster-than-plant-based-you-didnt-know-that/

https://www.nmpf.org/dairy-defined-the-over-hyped-shift-to-plant-based-beverages/

 

 

 

 

Taking a stand for true dairy products

By Clay Detlefsen, Senior Vice President for Environmental and Regulatory Affairs, NMPF.

It’s a tale that’s lasted decades too long. Plant-based companies continue to use dairy terms on their products, violating labeling laws as the Food and Drug Administration (FDA) continues to look the other way. But now a new kid has entered the conversation: synthetic “dairy” products that claim to be “animal-free,” yet worthy of a dairy name.

Synthetic dairy proteins are made in the lab by taking a section of a DNA sequence, programming or genetically modifying yeast and microflora with a specific DNA sequence and then using a precision fermentation to replicate it. The end product is a single whey protein, that’s then used to make products that companies are touting as dairy. That’s similar to the playbook the plant-based industry has run for years – and as research shows, it creates a false equivalence among consumers.

However, these companies aren’t making actual dairy, like milk, cheese and ice cream. Dairy foods are extremely complex. They offer essential nutrients, numerous high-quality proteins, micronutrients, and hundreds of fatty acids, all of which interact with each other to deliver one of the most nutritious foods in the marketplace. Creating a single synthetic dairy protein and mixing it with other ingredients to make a synthetic food product – the method currently being developed for commercial products – doesn’t creating anything approaching the complexity of actual dairy.

The National Milk Producers Federation (NMPF) has been calling on FDA to enforce its own standards of identity for dairy for decades. This has included numerous meetings, comments, filing a Citizen Petition, and sending letters to the FDA Ombudsman. Last March, FDA sent Draft Guidance for Industry on the Labeling of Plant-based Milk Alternatives and Voluntary Nutrient Statements to the Office of Management and Budget. That document has yet to be released. In the meantime, we continue the fight for labeling integrity, for dairy farmers and for consumers.

NMPF’s largest concern with the misuse of dairy terms are the nutritional issues that have arisen in recent years from the use of plant-based beverages as alternative nutrition sources, especially in children. Because of plant-based products not following the labeling laws and using dairy terms on their products, consumers are assuming that they offer the same nutrient package as dairy products, which is inaccurate. In the most critical of cases, it has led to nutritional deficiency diseases like Kwashiorkor and rickets.

NMPF for decades has been baffled by why FDA has not enforced its rules, especially given that it results in human health harm.  Recently, FDA issued a new standard of identity for yogurt: In that rulemaking, FDA specifically calls out the importance of standards. But it seems FDA only cares about such standards when it comes to a real dairy product; with plant-based (and soon, we worry, lab-based) imitators, a Wild West mentality has prevailed. The inconsistency is frustrating. What they have been doing by allowing plant-based food companies to break all the labeling rules is simply wrong, and we cannot allow it to spread to the new up and coming lab-created, synthetic foods.

To better understand FDA’s haphazard approach to standards when applied to dairy, NMPF has sent a Freedom of Information Act (FOIA) request for all information related to plant-based labeling, the use of the term animal-free, the negative human health consequences due to mislabeling of plant-based products and much more. It’s critical that we do this, as with a new generation of imitators on the horizon, we need to stand up for dairy now before consumer confusion proliferates further.


This column originally appeared in Hoard’s Dairyman Intel on Feb. 6, 2023.