Two of Westchester”™s major corporations are seizing the day ”“ and the spoon ”“ to take advantage of Americans”™ growing appetite for yogurt.
Analysts say over the past 10 years, yogurt has been the fastest growing food in the American diet. The consumer research firm Mintel predicts yogurt sales in the U.S. this year of $7 billion, up 9 percent from last year, when sales rose 7.5 percent.
Dannon, based in Greenburgh, has opened a restaurant in Manhattan called The Yogurt Culture shop, serving yogurt for breakfast and lunch in a variety of forms. The restaurant is in the Grand Central Terminal area at 125 Park Ave. between 41st and 42nd streets.
It”™s the first time Dannon has opened a restaurant anywhere. The shop won”™t sell the same pre-packaged yogurt it does in supermarkets, but premium yogurt with fruit and other toppings. Yogurt-infused sandwiches, muffins and salads are also sold, along with frozen yogurt for dessert made by Yocream of Portland, Ore. Also available is Greek-style yogurt made by Schreiber Foods of State College, Penn. Greek yogurts have helped drive the yogurt craze, since they are thicker and higher in protein.
Meanwhile, PepsiCo Inc., based in Purchase, and one of Germany”™s largest privately held dairy companies, Theo Muller Group, announced a joint venture July 9, called Muller Quaker Dairy, to introduce premium yogurt in the U.S. later this month.
This represents the first entry by either company into the U.S. consumer dairy product business. The yogurt will initially be sold in 17 markets in the Northeast and mid-Atlantic, including New York City, Boston, Philadelphia and the Hartford-New Haven market.
Mehmood Kahn, PepsiCo”™s chief scientific officer for global research and development, said in a statement that the dairy business represents a “category with strong growth prospects.” For PepsiCo it”™s the latest strategy to try and wean itself off reliance on snack and soda sales.
Dannon was noncommittal when asked if the restaurant was the beginning of a move by the company into yogurt as fast food. “It is a quick-serve restaurant, it”™s a restaurant setting, but this is not an attempt to get into quick-serve restaurants,” said spokesman Michael Neuwirth. “This is a concept store, not the launch of a chain; it”™s in the very early stages. There are many possible scenarios, but it”™s premature to speculate about those.”
As for the yogurt craze and what”™s behind it, Darren Seifer, food and beverage industry analyst at NPD Group, said it”™s a matter of demographics. People under 18, he said, and those 45 and over are the biggest consumers of yogurt. “There are a lot of newborns now and also baby boomers over 55, they”™re very concerned about what they eat, the health benefits, and yogurt has a health halo to it,” Seifer said. “But don”™t discount young adults, they”™re still eating it more than they did 10 years ago.” 
That halo surrounds more restaurants these days. “Restaurants like Chop”™t (Creative) Salad and Pinkberry have a health halo around them. There was also Cereality in Chicago, a cereal store. But that”™s not around anymore,” Seifer said.
Bonnie Riggs, a restaurant industry analyst at NPD, said her research has shown that people want to eat healthier when they go out to eat, but they don”™t necessarily want to hear about it. “People say they want fresh ingredients, quality food, balanced food groups, and all at reasonable prices,” she said. “But they don”™t want to see things called hormone-free and organic, for example. It doesn”™t sound appealing and they”™re afraid they”™ll have to pay more for it.”
Dannon”™s idea, she said, sounds like one that will address these issues. And the demographics play into it as well. “As people get older they look for healthier options, and the millennials (those 18-29) say they are looking for the same thing. So you have two big groups of people looking for this option.”
Riggs said that”™s why restaurants that fall into the fast casual category do well, like Chipotle Mexican Grill and Panera Bread. “They”™re not the cheapest priced, but they meet people”™s expectations in terms of quality and fresh ingredients. People find good value for what they receive and that is key today.”
Patrick Gallagher contributed to this report.
