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MilkPEP Essentials

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As a member of the MilkPEP, you may be asked general questions about the program by colleagues, employees, customers and friends. This information can help with some basic answers. If you receive questions from the media or you want assistance at any time with questions about MilkPEP, please contact the MilkPEP Processor Hotline at 1-800-945-MILK (6455).

MilkPEP History
Facts About the MilkPEP
MilkPEP Goals and Objectives
Program Operations
How Does MilkPEP Benefit the Industry?
Key Messages


MilkPEP History

Why and How did MilkPEP get started?
U.S. per capita consumption of milk began to decline slowly and steadily around 1960, due primarily to increased marketing efforts by soft drinks and the changing lifestyles of Americans. In the early 1990s, the Milk Industry Foundation (MIF) conducted extensive research on why people continued to move away from drinking milk. The results served as the basis for launching MilkPEP, and can be broken into two key areas:

  1. Milk carried some negative perceptions:— People thought milk was just for kids, was fattening, was not exciting, only went with fattening foods like cookies and cake, etc.; and,
  2. Milk had many product and distribution problems: It had unexciting and inconvenient packaging, wasn't available in many locations, and didn't have enough variety in flavors, styles, etc.

The research also revealed that:

  • People still had a very high respect for the nutritional benefits of milk, especially calcium,
  • But it was clear that milk had a tired image, and therefore was steadily losing market share to more contemporary beverages like sodas, sports drinks and ready-to-drink teas.

Recognizing this, processors saw the need to develop a program that would not only create an educational/image campaign which could address milk's image problems but would also identify opportunities and methods to help overcome milk's product and distribution challenges as well. Now, almost 10 years later, we have seen enormous change with the industry's successful image program (the National Milk Mustache "got milk?" Campaign), as well as significant progress in re-tooling our industry to be a competitive player in the world of beverages, with new packaging, flavors and products.

Developed April 2003 by the Milk Processor Education Program


Facts About the MilkPEP

  • MilkPEP is a commodity "check-off" program authorized by an act of Congress in 1990. The act authorized the collection of assessments from milk processors and the formation of a board of directors to manage the program. Milk processors passed a referendum supporting the program in 1993, USDA appointed the first board in 1994, and the first "milk mustache" ads began running in print in January 1995.

     

  • MilkPEP is funded through a 20-cent/hundredweight assessment on all U.S. fluid milk processors that package at least 3 million pounds of Class I milk a month. The resulting annual budget is about $105 million.

     

  • There are about 12 check-off programs assisting in promotion for U.S. agricultural products, from cotton to beef, each authorized by its own congressional act, each with its own requirements and specifications. Dairy Management Inc. (DMI) is funded by a separate dairy producer check-off passed by Congress in 1983. This program assesses dairy farmers 15 cents/ hundredweight of milk sold to handlers to promote all dairy products, not just milk.

     

  • While federal law requires that the U.S. Department of Agriculture (USDA) oversees the orderly collection of funds for check-off programs such as MilkPEP, and ensures that these funds are spent in the way designated by the MilkPEP board, no federal monies are used to fund MilkPEP. MilkPEP is entirely funded by the milk companies paying into the program — even USDA time spent on administration is reimbursed to the government.

Developed April 2003 by the Milk Processor Education Program


MilkPEP Goals and Objectives

Processors created MilkPEP to help them increase the sales of fluid milk products in the United States. The strategy for achieving this goal is refined each year by the board and staff, and has evolved significantly since the program's inception in 1994. A key to MilkPEP's mission is to use its limited funds strategically to reach the audiences that are most likely to drink more milk. All strategies, programs and messages are researched and tested on a regular basis.

MilkPEP's current program objectives and strategies are as follows:

To improve the potential for increasing milk consumption nationally by:

  1. Educating key targets such as teens and moms about milk's compelling nutritional benefits;
  2. Establishing flavored milk as a fun and delicious drink to be considered among the top three beverage choices among teens;
  3. Providing opportunities for processors to leverage the national program for the purpose of strengthening their local branding efforts;
  4. Providing programs to accelerate sales at retail;
  5. Identifying areas offering the greatest growth potential and developing programs that make it easy for processors to realize these opportunities;
  6. Minimizing any potential damage caused by anti-dairy advocates.

Developed April 2003 by the Milk Processor Education Program


Program Operations

MilkPEP is a fully integrated program that uses advertising, public relations and promotions. The National Milk Mustache "got milk?" print and TV ads are some of the most recognized, award-winning and highly rated for effectiveness of all advertising campaigns. In public relations, programs like the Milk Mustache Mobile and the NBA Rookie of the Year program garner millions of positive media impressions a year for milk. And promotions give regular boosts to milk sales.

In addition to these marketing efforts, MilkPEP explores new market opportunities through the Fluid Milk Strategic Thinking Initiative (FMSTI). FMSTI helped the industry explore and embrace new single-serve packaging, and today is helping develop milk opportunities in product development, vending, foodservice and other areas.

For more details on these programs, see the MilkPEP Annual Report and issues of MilkSplash, which can be found on-line at www.milkpep.org.

Developed April 2003 by the Milk Processor Education Program


How Does MilkPEP Benefit the Industry?

Since January 1995 when the first milk mustache ad ran, MilkPEP has helped the industry improve its stature as a competitive player in the beverage marketplace.

Here are a few ways MilkPEP continues to make a difference. For more details, see the MilkPEP Annual Report which can be found on-line at www.milkpep.org.

  • First and foremost, MilkPEP is the industry's only marketing tool solely devoted to promoting fluid milk to America's consumers nationally. It is essential in the industry's fight to maintain share of stomach against strong national beverage brands such as Coke, Pepsi, Tropicana, Minute Maid, Gatorade, Poland Springs, Dasani and others.

     

  • The National Milk Mustache "got milk?" Campaign has improved the image of milk among kids, teens and adults, and has increased the awareness of milk's health benefits among these key audiences.

     

  • Though significantly outspent by virtually every beverage category and most large national beverage brands the National Milk Mustache "got milk?" Campaign has more recognition than any competitive beverage campaign.

     

  • Per capita consumption among kids and teens, which are primary targets of the National Milk Mustache "got milk?" Campaign, increased in 2001 for the first time in five years with teens continuing to increase through 2002.

     

  • USDA reported in 2002 that milk sales would be 4.5% lower annually without the generic milk promotion efforts.

     

  • MilkPEP's efforts through its Fluid Milk Strategic Thinking Initiative have brought positive change and innovation to the industry. Advancing the industry's acceptance of plastic single-serve containers, encouraging the whitening of fat-free milk, identifying opportunities in vending, food service and other channels of distribution are all examples where MilkPEP has made a big difference.

     

  • MilkPEP has brought effective promotion activity to retail grocery channels where previously there had been none. In fact, MilkPEP's flavored milk feature incentive programs have consistently generated double-digit sales increases for the past three years and have encouraged retailers to more frequently promote milk on their own.

     

  • By extending the power of national programs and strong media partnerships, MilkPEP provides attractive opportunities for processors to effectively promote and sample their products in their local markets. Examples include MilkPEP's annual Milk Mustache Mobile Tour, 3v3 soccer, NBA Rookie of the Year and Disney sponsorships.

     

  • Because MilkPEP places hundreds of positive milk stories in the press each year, 8 out of 10 stories about milk today are positive where 7 out of 10 were negative prior to 1995. Annually the campaign generates nearly two billion media impressions for milk.

     

  • MilkPEP communicates breaking science on the health benefits of milk and calcium, and works with its Medical Advisory Board to provide milk companies with the most compelling messages for spreading the word on milk and good health.

     

  • MilkPEP effectively defends milk from anti-dairy and animal rights activists by providing the media with sound scientific facts that refute false sensationalist stories. MilkPEP and DMI together respond quickly and effectively on such issues as milk safety, lactose intolerance, and rBST to name a few.

Developed April 2003 by the Milk Processor Education Program


Key Messages

MilkPEP uses numerous message sets depending on the occasion and the audience. These are some of the key messages about milk:

  • The fact is there's a calcium crisis in America today and it's because people aren't drinking enough milk
    • Three out of four Americans don't get enough calcium, so they're not helping to protect their bones.
    • Drinking milk helps prevent osteoporosis, which currently affects 28 million Americans (one in five of those are male).
    • Milk is one of the best, simplest and most delicious sources of calcium and an excellent source of vitamin D, which helps your body absorb the calcium.
    • In addition to the bone building benefits of milk, research indicates that a diet rich in lowfat milk may help reduce the risk of high blood pressure and heart disease and help prevent breast cancer, colon cancer and even help in the fight against obesity.
    • Milk's benefits go beyond calcium — milk provides a great-tasting, convenient package of nine essential nutrients.

     

  • The National Milk Mustache "got milk?" Campaign is addressing the nation's calcium crisis
    • The campaign was created to educate Americans about the health benefits of drinking milk.
    • The campaign has dramatically and positively changed the image of milk and influenced behavior.
    • The campaign has helped stem a 30-year decline in milk consumption and we are encouraged by recent data indicating that milk consumption is up among important audiences like kids and teens.

     

  • We're waging a battle for America's health
    • Milk competes with less nutritious beverages like soft drinks, juice drinks and sports drinks in a crowded marketplace.
    • The soft drink companies outspend us four to one.
    • The juice industry outspends the milk industry by two to one in advertising and promotional support.
    • Kids now drink twice as much soda as milk and this is impacting their health.

     

  • Milk is doctor recommended.
    • Milk's role in a nutritious diet has long been established and lauded by the nutrition and science community, including the American Academy of Pediatrics, the American Dietetic Association, the National Institutes of Health, the U.S. Department of Agriculture, the National Osteoporosis Foundation, and many other reputable health organizations.

Additional Support for the Key Campaign Messages

  • The Calcium Crisis
    • Nearly nine out of 10 women and almost seven out of 10 men don't get the recommended daily amount of calcium — 1,000 mg or about three glasses of milk. Kids aren't getting enough calcium either. Almost 90 percent of teenage girls are not consuming the calcium they need — at least 1,300 mg every day.
    • The teen years are critical bone-building years and teens need calcium to help reach their maximum height and help their bones be as strong as they can be.
    • Bones continue to grow in density and strength until about age 35.
    • In this country, 28 million Americans are affected by the bone-thinning disease osteoporosis and about one in four adults — or 50 million people — have high blood pressure, which is a major cause of heart disease and stroke. Adequate calcium intake can help prevent both of these diseases.

     

  • The Campaign
    • Per capita teen milk consumption increased 3% in 2001 and increased again in 2002 - the first increases in teen milk consumption in five years. (According to the National Family Opinion's SIP data)
    • The campaign has dramatically improved the image of milk. Research shows that compared to when the campaign started, Americans now think milk is healthier and more popular.
    • The National Milk Mustache "got milk?" Campaign is a multi-faceted consumer education effort that includes partnerships with major health organizations like the National Osteoporosis Foundation and the American Heart Association and in-school education programs. The campaign currently reaches out to moms and teens. We reach the different audiences in a variety of ways, from putting milk on the training table for teens and encouraging moms to use milk in recipes to make them taste better, to taking the message on the road across the country through our Milk Mustache Mobiles.

     

  • Lactose intolerance doesn't mean dairy intolerance
    • Lactose intolerance is a matter of degree. Most people with lactose intolerance can still drink milk as long as it is consumed with meals instead of on an empty stomach.
    • Recent studies indicate that people who have trouble digesting lactose can drink up to two cups of milk a day when consumed with meals.
    • You can also look for lactose-free milk in the dairy case.

     

  • Other Kid/Teen-Focused Messages
    • Teenage girls are missing out on milk; 40% drink less than one glass per day, yet four glasses are recommended each day to help meet their needs for calcium.
    • During the teen years nearly half of all bone is formed and about 15% of your adult height is added.
    • About 30% of kids age 1-5 do not get enough calcium in their diets.
    • Nearly nine out of 10 teenage girls and almost seven out of 10 teenage boys fail to get enough calcium in their diets. Teenagers need 1,300 mg of calcium per day, the equivalent of at least four 8-ounce servings of milk.
    • A study published in 2002 in the Journal of the American Dietetic Association showed that teens who drink flavored milk drink fewer soft drinks and juice drinks and have an overall better nutritional profile.
    • Milk processors are now providing great-tasting flavored milk in grab and go packages that kids love — making it easy for them to get their milk.

Developed April 2003 by the Milk Processor Education Program