Dairy Management Inc

Programs: Dmi partners with foodservice industry leaders to help create dairy-based innovation to drive dairy sales and build trust in dairy products. In 2016, we had four marketplace partners: domino's, pizza hut, taco bell, and mcdonald's. Dmi partners with these large catalytic companies because they are industry leaders who have the potential to deliver incremental and sustainable dairy sales; they commit to invest in innovation and marketing in support of dairy-based products; and they are willing to partner on other dairy industry priorities. Dmi supports a range of programs and initiatives with these influential and global foodservice industry leaders. The programs focus on providing dairy expertise and investment in the areas of consumer insights, new product development, store and market level tests, promotions and consumer communications. Further, dmi provides on-site scientists and/or culinary experts who deliver support in the development of dairy-based food and beverage products. Dmi also provides expertise and consultants in the areas of nutrition, sustainability, animal care, food safety, regulatory environment, and dairy communications. Dairy represents a substantial portion of the partners' menus. In fact, it is more than 70% of all their menu items. Since 2012 these partners have spent $8. 6 billion on advertisting, a sizable portion of this spending featured dairy-based products such as pizza, tacos, ice cream and coffee drinks. Since the start of these partnerships in 2009, their combined milk equivalent tonnage has grown by 1. 8 billion milk pounds and 4. 1%. Recent highlights include mcdonalds october 2015 transition from margarine to butter. The commercialization and transition from margarine to butter was led by a dmi scientist and, after converting the butter to milk pounds, resulted in an additional 600 million pounds of milk. Dmi also led the development and commercialization of mcdonald's mozzarella sticks, which launched in late 2015. In 2016 dmi scientists led development and commercialization of several projects scheduled for launch in 2017. These included a shamrock chocolate madness event, where dmi helped create four new dairy based products and incorporated the real seal to highlight quality dairy ingredients. Additionally, dmi helped develop a new burger and chicken platform called signature crafted recipes. These are premium beef and chicken recipes that all include white cheddar cheese. In 2016 dmi invested in technology innovation platforms at domino's, which expand availability and access to pizza. Dmi also invested in a 'black friday' promotion to help add impactful media providers and programs and extend the promotional days. Domino's and dmi continued to partner on its 'smart slice' school pizza program. Smart slice is now in more than 7,500 schools. In 2016, dmi helped expand smart slice into the college and professional sports channels through our dietic industry relationships. College examples include: the university of notre dame, the university of alabama and the university of southern california. Professional sport teams include the los angeles angels and affiliates and the pittsburgh pirates and affiliates. Domino's also supports building trust in the dairy industry, including supporting future farmers of america with a $1 million scholarship commitment in 2016. In 2016 dmi entered a new contract with pizza hut that will enable dmi to lead the development of new product platforms through providing breakthrough innovation focused on putting "cheese in more places". An example of this was the 2016 introduction of pizza hut grilled cheese stuffed crust pizza which included double the cheese of a regular one topping pizza at pizza hut. The product development was led by an on-site dmi scientist. Pizza hut also introduced a new "knot" platform that stuffed cheese in a stuffed garlic knot pizza that had 40% more cheese than a regular one topping pizza. Since the taco bell partnership began dmi has helped taco bell evolve in how they use dairy, from incorporating it as a 'garnish' to evolving into being more of a key ingredient to drive flavor, protein and/or innovation. In 2016 dmi led a major breakthrough for taco bell in leading the development and launch of the quesalupa. This innovative offering features an ounce of natural pepper jack cheese inside two flour tortillas that are pressed together to create a new cheesy shell. The quesalupa shell is formed into a taco using a proprietary process developed by the dmi scientist. Each quesalupa utilizes five times as much cheese as a regular crunchy taco. Taco bell had the idea for the quesalupa years ago but was unable to produce it until the on-site scientist, backed by dairy farmer funding of consumer research and product testing, was able to bring the quesalupa to life. The launch of the quesalupa helped taco bell achieve milk equivalent tons growth of 10% in 2016. Further, in recognition of the tremendous work, dmis scientist was awarded the "yum award" from greg creed, ceo of yum brands. This prestigious award is given to someone who shows tenacity in achieving superior results. Dmi's employee was the first taco bell partner to win this exclusive award. Fluid milk partnerships: the dairy checkoff program, working with committed milk processors, has embarked on a comprehensive revitalization strategy to reinvent the milk experience for consumers. The focus includes milk as a stand-alone beverage as well as an ingredient in other beverage segments such as coffee, tea, smoothies, energy drinks and more. As part of the efforts to revitalize fluid milk the dmi board approved partnerships with eight companies who are leaders and innovators in the milk and beverage arena including dairy farmers of america (dfa); darigold/northwest dairy association; the kroger company; hp hood; maryland & virginia milk producers cooperative association, inc. ; shamrock farms; southeast milk, inc. ; and coca-cola/fairlife. The hp hood partnership came to a conclusion in 2015. The remaining partnerships were active in 2016. Dmi's partnership with hp hood started in 2012 and concluded in february 2015. The checkoff program supported lactaid innovation, marketing, and health professional outreach, which spurred innovation and growth in the lactose-free segment overall. The entire lactose-free segment grew 15% in 2016. Dmi assisted and invested in the launch of a national brand leveraging the resources and scale of coca-cola. Fairlife continues to grow aggressively, achieving dollars sales of $175m and growth of 84% in 2016, while also gaining recognition as a top ten new product launch from information resources, inc. (iri). In late 2015 dmi partner dairy farmers of america (dfa) launched a new brand - live real farms an energy drink that appeals to the modern consumer. The product, in limited test markets, is a blend of milk, juice and natural ingredients that are fresh from the farm. Dmi's team provided consumer insight and assisted in the formulation development of the product, consumer testing, and brand marketing. Dmi partnered with darigold and kroger to identify optimal consumer targets and developed several innovation platform areas. Currently the first of those platform areas is getting ready for launch in 2017. Dmi is helping develop optimal brand positioning, packaging and new product territories for maryland & virginia milk cooperative and southeast milk inc. , targeting a 2017 launch. Dmi worked with shamrock foods to provide consumer and nutrition insights in support of the upcoming 2017 launch of shamrock farms cold brew coffee. Our partnerships are already stimulating change in the industry and fundamentally changing the way the fluid milk industry does business by driving investment in modern infrastructure; by creating new products and new brands; by stimulating increased advertising and stronger consumer messaging; and by forging new growth strategies and creating sustainable growth models. Since the start of dmi partnerships, more than $700 million has been spent to upgrade or build new plant facilities with enhanced capabilities to produce extended shelf life or shelf-stable products. Dmi partners have hired individuals to support and staff innovation projects. Additionally, the milk industry has increased investments in milk advertising, with spending of $81 million in 2016, which is 1. 8 times 2013 advertising levels.

export dmi implements marketing programs to facilitate the sales of u. S. Produced dairy products in international markets and u. S. Produced dairy ingredients within and outside the united states. Dmi also provides trade policy and access support for exports into international markets.

fuel up to play 60 (futp 60) is dairy's best success story when it comes to advancing health and wellness among youth. At its core, futp 60 is an in-school health and wellness program designed to engage and empower youth to take action for their own health by implementing long-term, positive changes for themselves, their schools and beyond. Customizable and non-prescriptive program components are grounded in research with youth, including tools and resources, in-school promotional materials, a website and student engagement activities. Futp 60 was founded by the national dairy council (ndc) and the national football league (nfl), in collaboration with the u. S. Department of agriculture. Since that time futp60 has become the largest in-school health & wellness program in the united states with over 73,000 schools enrolled, reaching 38 million students since launching nationally in 2009. The program has helped to change school environments to better support proper nutrition and physical activity. The program has not only been well received by schools as it helps them improve the school health and wellness environment, but also has been embraced by those outside of the dairy industry who see the value of engaging in the program including many other health and nutrition organizations. Our success with futp 60 goes beyond healthy eating and physical activity in schools. It is about the total health of the child, from the hungry to the healthy.