2023 December Board Book

(trade/market analysis, processor relations, retail/food service/e-commerce promotions, trade shows and export market development). Progressive Dairy Editorial Intern Michelle Stangler spoke with Talbot on how the organization is focused on winning new milk consumers with innovation. Describe the dairy landscape in California. TALBOT: California is the largest milk-producing state in the U.S., accounting for just under 20% of total U.S. milk production. Forty-six percent of that milk goes into cheese and 32% goes into butter, with only 13% going into fuid milk. From a distribution standpoint, 32% of California milk production goes into products sold in California, 39% goes into products sold in the balance of the U.S., and 29% goes into exports. Another way to look at it is roughly half of the domestic business goes through retail channels and half goes through food service. The pandemic and the infation that followed put a strain on food service channels, but this is slowly coming back into balance. The pandemic signifcantly altered consumer attitudes and consumption. With most people working at home, food preparation and consumption shifted to in-home, and in-person restaurant trafc dropped considerably. The last two years of infation further exacerbated this situation. Even now, 45% of Americans are working at home and 90% say they will con‐ tinue to eat more at home. The pandemic also fueled signifcant growth in the e-commerce channel, which has slowed a bit but has still become an undeniable component of the con‐ sumer purchase portfolio. How does your checkoff organization determine which pro‐ grams may be most impactful? TALBOT: Our programs are all about driving growth of value-added products; we do not fo‐ cus on commodity products. In these trying infationary times, the most successful products/promotions build value in the minds of consumers. That could be through focus on a functional beneft like hydration, new product innovation focused on gut health, a trending consumption occasion like snacking, a culturally relevant food trend like Hispanic-style cheeses or an important sustainability message like reduced carbon footprint. A program that awards more than $250,000 to dairy startups is celebrating the ffth anniversary. Tell us more about this program and how it has evolved. TALBOT: The fundamental idea in the formation of the Real California Milk Excelerator pro‐ gram was to combine two of California’s greatest resources – nutritious, real California milk and the insatiable, entrepreneurial spirit of California. It’s all about innovation. We must fos‐