How Dairy Checkoff is Winning in Today’s Retail World

If the past few years have taught us anything about retail, it’s that change is the only constant.

Grocery has evolved from a bricks-and-mortar-first experience into a fast-moving, multi-channel ecosystem, with e-commerce, retail media networks and digital engagement redefining how consumers discover, shop and purchase their food.

In 2024, about one-third of U.S. milk production – more than 226 billion pounds – moved through domestic retail. That’s powerful volume flowing into consumers’ hands through the grocery channel.

But the makeup of that retail landscape has changed. Today’s consumers – especially younger generations – are digital-first, health-conscious and less brand-loyal than ever. They expect seamless experiences across in-store and online platforms and are influenced by everything from recipe videos on TikTok to meal planning apps and smart in-store navigation tools.

Retailers are adapting rapidly to meet these demands. From grocery chains like Kroger and Albertsons to club stores like Costco and Sam’s and supercenters like Walmart and Target, the emphasis is on convenience, personalization and frictionless experiences.

E-commerce grocery sales now represent nearly 20% of total sales, an astonishing shift from just a few years ago. And what’s more important: digitally influenced grocery trips now account for 70% of all purchases, and these trips can be inspired by social media and content partnerships, recipes or product discovery while on-the-go.

This transformation represents a massive opportunity for the dairy industry to engage with shoppers in new and meaningful ways. And we are.

Full checkoff effort

Dairy Management Inc. (DMI) and state and regional teams across the checkoff federation are fully activated in this space, bringing an aligned power of dairy to where and how consumers are shopping.

And our partnerships and campaigns are delivering. Last year alone, checkoff-led retail efforts resulted in 33 digital activations on platforms like Instacart, driving more than $24 million in dairy sales and over 7.5 million incremental pounds of milk. That’s a $17 return on every $1 of checkoff investment.

With strategic support from experts at Stackline and media partners like Chicory and Instacart, we’re expanding our digital footprint through targeted personalized experiences. Shoppable recipes and influencer-led content are distributed across connected TV and in-store signage to build dairy’s presence in all corners of the digital retail world to reach consumers at multiple points of purchase.

Take, for example, our We Are Family 2.0 campaign. By partnering with Walmart and Costco – and targeting a 10-mile radius around key stores – we can reach 90% of U.S. households with creative

that emphasizes dairy’s essential role in family nutrition. This campaign isn’t just about awareness; we’re targeting high-impact moments with full-funnel marketing ultimately to drive sales. Our digital tactics guide consumers from inspiration to action with clear, compelling pathways to “add to cart” instantly.

These wins are the result of strong collaboration, and we are more aligned than ever across the checkoff federation. Shared creative, shared media buys and a shared vision allow us to function as effectively as possible.

We’ve also seen strong results in key moments like the holiday season. Campaigns focused on high-use dairy items like cream, butter, cheese and milk led to measurable lifts in additional sales. One Chicory campaign with the Florida Dairy Farmers moved nearly 5 million pounds of milk. That’s real volume growth at a time when every pound matters.

Looking ahead

So, what’s next? Continued growth in retail media networks, deeper shopper personalization and the further blurring of

physical and digital strategies. Whether it’s search results on a grocery app or a recipe video on Instagram, dairy needs to appear first and relevant. That’s why we’re investing in new platforms, expanding our reach and focusing on the attributes consumers value most: nutrition, convenience, transparency and sustainability.

The good news is that dairy already is outperforming many other categories. Dairy is growing faster than total food and beverages in retail, and consumers continue to see dairy as a staple. But we cannot rest and we must continue earning the shopper’s attention and make it easier than ever for them to consistently choose dairy.

The retail environment will continue to evolve and so will the dairy checkoff. With unmatched versatility, nutrition and taste, dairy is perfectly positioned for today’s shopper. And through the checkoff’s strategic leadership at all levels, we’re more than keeping up with change.

We’re driving change, putting more dairy in more baskets, and delivering meaningful value back to the farmers who make it all possible.

To learn more about your national dairy checkoff, visit DairyCheckoff.com or to reach us directly, send an email.