TruMoo is a flavored milk brand that is marketed by Dean Foods. It was first introduced in the United States in 1999. TruMoo is available in a variety of flavors including chocolate, strawberry, and vanilla. It is marketed as containing no high fructose corn syrup and no artificial growth hormones. TruMoo has been a popular flavored milk brand over the past two decades. However, in recent years, sales of TruMoo have declined significantly. This article will examine what has happened with TruMoo in terms of sales, market share, distribution, and reputation. It will analyze the potential reasons behind TruMoo’s struggles and what the future may hold for the brand.
Sales and Market Share Declines
TruMoo experienced a sharp decline in sales starting around 2015. From 2013 to 2018, sales of TruMoo dropped by over 25% from $500 million to around $370 million according to market research firm IRI. This sales slump resulted in TruMoo losing significant market share in the flavored milk category. In 2013, TruMoo held a 15% share of the U.S. flavored milk market according to Euromonitor data. By 2018, its market share had dropped to just 9.5%. The brand was surpassed by competitors like Nesquik and store brands. TruMoo went from being the second best selling U.S. flavored milk brand to the fourth.
TruMoo Sales and Market Share 2013-2018
| Year | TruMoo Sales | TruMoo Market Share |
|---|---|---|
| 2013 | $500 million | 15% |
| 2014 | $490 million | 14.5% |
| 2015 | $450 million | 13% |
| 2016 | $420 million | 11% |
| 2017 | $390 million | 10% |
| 2018 | $370 million | 9.5% |
Distribution Losses
In addition to sales and market share declines, TruMoo suffered major distribution losses in recent years. As the brand’s sales slipped, major retail and grocery chains reduced or eliminated their stocking of TruMoo products. Walmart, Target, and various supermarket chains removed TruMoo from their shelves or significantly cut back on facings. According to market research from Nielsen, the distribution of TruMoo declined by over 30% from January 2015 to December 2018. At its peak, TruMoo products were available in about 80% of large retail and grocery stores. By the end of 2018, TruMoo’s distribution had fallen to around 50% of major chains. The loss of distribution made the sales decline even more precipitous.
TruMoo Distribution Losses
| Year | TruMoo Distribution % |
|---|---|
| January 2015 | 80% |
| January 2016 | 75% |
| January 2017 | 60% |
| January 2018 | 55% |
| December 2018 | 50% |
Damaged Brand Reputation
Another major factor in TruMoo’s decline was brand damage. In early 2018, a lawsuit was filed against Dean Foods alleging they mislabeled TruMoo as “hormone free” when it contained trace amounts of the hormone bST. The lawsuit challenged the veracity of TruMoo’s “No rBGH – No artificial growth hormones” label claim. While Dean Foods disputed the merits of the lawsuit, it generated significant negative publicity that hurt TruMoo’s wholesome brand image. Whether the lawsuit claim was true or not, the controversy cast doubt on the brand’s reputation. Additionally, environmental organizations had criticized TruMoo’s plastic milk jugs as environmentally damaging. This also dented consumer perceptions of the brand. The combination of negative press weakened TruMoo’s brand strength.
Health Trends Away from Flavored Milk
Shifting consumer health trends have also made the flavored milk category more challenging in recent years. Growing concerns about sugar intake have steered some consumers, especially parents, away from purchasing chocolate and strawberry flavored milk products. There is also increased scrutiny on artificial flavors and ingredients. Brands are under pressure to simplify ingredient labels and reduce additives. As the most processed flavored milk option, these trends have disproportionately impacted TruMoo compared to simpler options like store brands. The health halo of being “hormone-free” can only take TruMoo so far if consumers view it as overly processed and unhealthy.
Rise of Private Label Store Brands
The growth of store brand flavored milk has also presented a major challenge to TruMoo. Retailers like Walmart, Aldi, and Kroger have invested in developing their own flavored milk options at lower price points than TruMoo. Store brands focused their messaging on being local, hormone-free, and having simple ingredients. Combined with lower prices, these simplistic flavored milks resonated better with consumers seeking healthier options. The rise of store brands cut into TruMoo’s sales and gave retailers more reason to favor their own products. For example, Kroger-owned chains reduced TruMoo placements in order to promote their Little Hug fruit drinks. The competition from surging private label store brands has been a significant detriment.
Decline of Shelf-Stable Flavored Milk
TruMoo’s shelf-stable Tetra Pak milk containers also fell out of favor compared to refrigerated flavored milk options. TruMoo was a pioneer in long shelf-life flavored milk. However, many consumers came to view the aseptic packaging as overly processed and unnatural. Kids in particular grew up accustomed to refrigerated flavored milk. The preference for chilled flavored milk negatively impacted perceptions and sales of TruMoo’s ambient temperature products. TruMoo was slow to respond to this shift in consumer sentiment. The result was their distinct packaging became a liability rather than a competitive advantage.
Failure to Innovate
TruMoo was also criticized within the industry for failing to innovate. Once the market leader in flavored milk, TruMoo fell behind the innovation pace of competitors. Brands like Nesquik introduced new formulations, flavors, and packaging choices while TruMoo remained stagnant. Their chocolate and strawberry flavors in particular grew stale. They also failed to tap into emerging trends like plant-based, organic, and low-sugar varieties early enough. TruMoo eventually tried to catch up by launching new product extensions, but it was often too little too late. The lack of innovation made it easier for consumers to switch to newer, fresher flavored milk options.
Insufficient Marketing Investment
Compounding these issues was a lack of marketing support for TruMoo in recent years. As sales declined, Dean Foods appeared to pull back on advertising spending for the brand. The marketing campaigns and promotions that built strong brand recognition in the early 2000s slowed to a trickle. This made it difficult for TruMoo to remind consumers about the brand and its attributes. Reduced sampling and couponing also minimized trial opportunities. Without sustained, effective marketing, it became impossible for TruMoo to regain its footing against growing competition. The cutback in advertising spend was likely tied to financial troubles at Dean Foods.
Financial Instability at Dean Foods
The parent company of TruMoo, Dean Foods, experienced considerable financial instability from 2016 to 2019. The company was saddled with significant debt and struggled to implement a successful turnaround strategy. Profits and revenues declined as milk sales dropped across its broad portfolio of brands. Dean Foods sold off some regional brands and closed facilities in an effort to cut costs. However, these efforts did little to improve the bottom line. The company was operating under constrained budgets, including for marketing. This corporate turmoil made TruMoo’s situation more dire. The brand likely did not receive the investment and resources needed to halt its sales slide.
Bankruptcy Filing in 2019
In November 2019, Dean Foods filed for Chapter 11 bankruptcy protection due to the ongoing struggles with debt and mounting losses. The company had not reported an annual profit since 2016. It was unable to effectively respond and adapt to shifts in the dairy and milk industry. These factors culminated in the bankruptcy filing after 94 years in business. The future for Dean Foods’ brands, including TruMoo, became uncertain during the bankruptcy proceedings. The company explored options for selling off brands and assets to pay creditors. In early 2020, the dairy cooperative Dairy Farmers of America agreed to purchase a substantial portion of Dean Foods and its brands. However, the specifics of what brands and assets would be retained were still undetermined.
Potential Sale or Discontinuation
Given TruMoo’s sales declines and loss of distribution, the brand’s future hung in the balance as Dean Foods navigated bankruptcy. It was unclear if Dairy Farmers of America would continue to manufacture and market TruMoo milk. Or they could sell the TruMoo brand assets to another company. There was also the possibility that TruMoo could be discontinued altogether and removed from shelves. The bankruptcy introduced tremendous uncertainty over the fate of the once strong flavored milk brand. Its survival would depend on the business decisions of those overseeing the Dean Foods bankruptcy and asset sale.
Turnaround Unlikely Without Major Innovation
If TruMoo remains on the market in some form, major changes and innovation would be required to turn the brand’s fortunes around. TruMoo would likely need an entirely new look, formula, and branding message to distance itself from years of slipping sales. Radical ideas like transitioning to a dairy-free plant-based formulation could be considered. TruMoo may also need to pioneer a new packaging format to get attention and trial. Essentially it would take starting over from scratch to rehabilitate the damaged TruMoo brand. Relying on the same chocolate milk formulation and packaging has proven to be an unsuccessful strategy. Turnaround would demand bold, innovative steps.
Focus on Health and Environment Needs
As part of a relaunch, TruMoo would be wise to address health and sustainability trends in a substantive way. Creating a nutritional and eco-friendly product could tap into consumer desires. TruMoo could consider touting organic certification, reduced sugar content, minimal ingredients, and eco-friendly packaging such as plant-based cartons. Consumers have grown dubious of the wholesomeness of conventional milk products. TruMoo could target the ingredient-conscious parent demographic with a truly clean label milk. They should back up claims through certifications and transparency. There is a growth opportunity in premium “health halo” milk that TruMoo could seize.
Kids Market Still Potential Opportunity
The kids and children’s market represents one of the remaining growth areas for TruMoo. Younger generations still have fondness for chocolate and strawberry milk. By focusing just on kid-centric flavors and formulations, TruMoo could simplify their offerings. The brand equity with moms could be rebuilt by emphasizing attributes like child-approved taste and essential nutrients for development. Fun, engaging marketing on channels like YouTube and TikTok can connect with digitally native kids. There is room for TruMoo to be the leader in just the children’s flavored milk segment. Pursuing this narrower market focus could be their path forward.
Consider Merging with Successful Milk Brand
If TruMoo remains part of Dean Foods, one option is to merge the brand with the more successful Dean’s brand. Dean’s milk sales grew in 2019 even as TruMoo declined. The company could realize synergies by combining their resources behind Dean’s as their flagship milk product. TruMoo’s strengths in flavored milk and long shelf life could complement Dean’s strengths in fresh white milk. A unified mega milk brand could improve efficiency and have stronger marketing potential. Eliminating the TruMoo brand altogether and focusing on core Dean’s milk across segments is worth evaluating.
Licensing the Brand to a Specialty Dairy Company
Rather than operating TruMoo themselves, Dean Foods could consider licensing out the TruMoo brand name. Allowing an independent dairy company to produce and market TruMoo milk under a licensing deal could be mutually beneficial. This strategy would provide immediate revenue to Dean Foods while freeing up overhead. An innovative, nimble dairy producer could revitalize TruMoo without Dean Foods’ burdens. Forging a licensing partnership with an entrepreneurial dairy firm may offer the best chance of returning TruMoo to growth.
Goodbye TruMoo?
While TruMoo hopes to eventually recover and find renewed success, the unfortunate reality is the brand’s heyday has likely already passed. Given the array of missteps, market changes, and competitive factors, TruMoo may slowly fade away into obscurity. For an entire generation of kids, TruMoo was THE flavored milk brand. But today’s youth have little connection or loyalty. At a certain point, trying to salvage the brand may make less sense than investing in new concepts. Sentimentally, it feels like the end of an era if TruMoo cannot be saved. But realistically, the market may have already passed them by. We have likely witnessed the slow demise of what was once America’s favorite flavored milk.
Conclusion
In summary, TruMoo has experienced a precipitous decline over the past five years due to shrinking sales, loss of distribution, brand reputation damage, and competitive threats. The brand faces immense challenges in trying to regain its standing as a leading flavored milk. While TruMoo still has nostalgic brand equity, the reality is consumers have moved on and now associate it with negatives like processed ingredients and plastic waste. To survive, TruMoo must completely reinvent itself with a back-to-basics, healthy positioning. It also may consider a licensing deal with a specialty dairy producer. However, TruMoo’s long-term outlook remains bleak after years of strategic miscalculations. The bankruptcy of Dean Foods raises serious existential questions. One of the most likely scenarios is that TruMoo slowly fades into obscurity or is discontinued altogether. The brand appears to have passed the point of no return on its way to irrelevance.