Darigold Returns to the Philippines After 50 Years with New Dairy Products

Darigold's Comeback to the Philippines



After a five-decade hiatus, Darigold, Inc., the prominent dairy cooperative based in Seattle, has announced its return to the Philippine market with a new line of consumer products. This move marks the first opportunity for local consumers to purchase Darigold-branded dairy goods since the 1970s. The company has partnered with AllDay Supermarkets to launch its popular FIT Milk line as well as aseptic, ultra-pasteurized milk products.

Darigold originally set foot in the Philippines in the 1920s but withdrew its consumer product offerings in the 1970s. Despite this withdrawal, the company remained active in the region, continuing to export dairy-based ingredients to commercial clients in about 30 countries, including the Philippines. Products like butter, cheese, and powdered milk were regularly supplied to various industries that manufacture childhood nutrition items, protein drinks, baked goods, and more. With this shift back to consumer products, Darigold aims to cater to both commercial clients and everyday consumers in the region.

The newly reintroduced consumer offerings include FIT Milk available in convenient single-serve bottles, along with ultra-pasteurized fresh milk options such as whole milk, chocolate, and strawberry flavored variants. This strategic re-entry allows Darigold to leverage its existing commercial distribution channels as it embarks on this fresh venture into direct-to-consumer sales.

Dan Hofmeister, president of Darigold's brand-to-consumer division, highlighted the unique challenges of distributing fluid milk, particularly due to its limited shelf life. However, ultra-high-temperature pasteurized products like FIT Milk and aseptic milk can last up to a year—significantly increasing their viability for global shipping.

The shift towards global health-conscious dairy consumption presents a significant opportunity for American dairy producers, especially as the demand for dairy is expected to rise in tandem with declining production in regions such as Europe and Oceania. Rabobank estimates a surge in global dairy demand from 95 million metric tons to 115 million metric tons within the next decade, while USDA data suggests that dairy demand is on track for 3% growth in the Philippines, which currently imports nearly all its dairy needs.

Allan Huttema, president and CEO of Darigold, emphasized the strengths of their location in the Northwestern United States, which provides easy access to essential shipping infrastructures like rail systems and ports. Such advantages play a crucial role in expanding their international business efforts, especially given the rising global demand for dairy products.

In parallel to this initiative abroad, Darigold has also been making strides in domestic distribution, creating partnerships to send products to new markets, including areas across the eastern and midwestern United States and on platforms like Amazon. Hofmeister remarked on the relatively low recognition of the Darigold brand outside the Northwest, noting that these new partnerships could enhance the brand's visibility in underrepresented markets both nationally and internationally.

The expansion is supported by infrastructure growth as well; in late 2022, Darigold broke ground on a new facility in Pasco, Washington, aimed at processing an additional 8 million pounds of milk daily. Huttema expressed confidence that the efforts of the farmer-owners would solidify the region's status as a leading dairy hub for future generations.

In summary, Darigold's return to the Philippines and its focus on consumer products represents sustained efforts to adapt to global market dynamics while simultaneously building a more resilient domestic operation. This new chapter promises not just renewed brand presence in a vital international market, but also significant growth opportunities for the cooperative and its farmer-owners. For more information on their offerings and strategic goals, visit Darigold.com.

Topics Consumer Products & Retail)

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