Muller Breaks Danone, Yoplait Market Control

Two and a half months after Tara's investing NIS 5 million in the launch of Muller flavored yogurts in Israel, the overall yogurt market has grown by 38%, and Tara's segment has grown by 20%, at the expense of Danone and Yoplait. Flavored yogurts constitute 52% of the total yogurt market, and based on bar code records, it generates revenues of NIS 418 million annually. In the first quarter of 2008 flavored yogurts saw sales of NIS 120 million, up 38% compared to the same period in 2007.

In terms of revenue, Muller had captured 18% of the market in terms of revenues in February, which climbed to 21% by March. However, in terms of quantity, Muller commanded 14% in February, and 18% in March - reflecting the fact that the brand is a relatively expensive one.

Muller's growth is unrelated to expenditures on advertisement. Tara spent just $185,000 in advertising the brand in February, and $200,000 in March, a negligible investment in billboard and newspaper advertising. The company has chosen not to launch a televised campaign.

In terms of revenues, the market segment of it's largest competitor, Yoplait, tumbled from 51% in January, to 44% in February and 43% in March.