Dairy Products Stores

SIC 5451

Industry report:

This category includes establishments primarily engaged in over-the-counter retail sales of packaged dairy products to customers. Ice cream and frozen custard stands are classified in SIC 5812: Eating Places, and establishments selling ice cream and similar products from trucks or wagons are classified in SIC 5963: Direct Selling Establishments. Establishments primarily engaged in processing and distributing milk and cream are classified in the various dairy products manufacturing industries.

Industry Snapshot

Cheese, milk, butter, and other dairy products stores, as well as packaged ice cream stores, are the predominant types of retail establishments found in this group. Like other retail grocery segments, dairy stores faced eroding market share from competition with supermarkets, convenience stores, and superstores during the first decade of the twenty-first century. Throughout the decade convenience stores and drug stores showed impressive sales of milk even though milk consumption continued a decline that began in the 1970s. The specialty stores struggled to keep a firm grip on their niche market by touting high-quality products and better customer service.

According to the U.S. Census Bureau, this industry had 4,641 establishments in 2010, which employed a total of 34,889 people. Revenues for specialty food stores in 2009 reached $19.3 billion, according to the U.S. Census Bureau. Although total dairy drink sales were down 1.9 percent in 2008, some fluid milk products were expected to make inroads, including value-added products, such as drinkable yogurt; fortified milk, such as the top-selling Muscle Milk; and specialty-favored milks. In addition, the overall trend for healthier eating prompted many fast food restaurants to begin to include single-serving milk options on their menus, which was another growth segment for milk products.

Most stores in this classification were small, private companies, with 78 percent reporting less than 20 employees in 2010. As an economic recession took hold at the end of the first decade of the 2000s, many of these small, private companies felt the pinch as consumers cut back on spending. In an effort to curb monthly budgets, consumers increasingly picked up the less expensive dairy products at their more convenient supermarkets.

Larger firms in the industry in the early 2010s included family-owned W.H. Braum Inc., based in Oklahoma City, Oklahoma, which operated more than 280 Braum's Ice Cream and Dairy Stores in Oklahoma, Kansas, Texas, Missouri, and Arkansas. Annual sales in 2011 reached $24.6 million. North Aurora, Illinois-based Oberweis Dairy operated retail stores and franchises primarily in the St. Louis and Chicago areas. The company also delivered locally produced milk and milk products to 40,000 homes. Stew Leonard's, based in Norwalk, Connecticut, began as a small dairy store in 1969 with seven employees before gaining recognition as the "World's Largest Dairy Store," with 2011 sales of more than $400 million and approximately 2,200 employees. Stew Leonard's was named to Fortune's "100 Best Companies to Work For" and operated stores in Danbury, Connecticut, and Yonkers, New York. The company, which maintained a strong e-commerce presence, also sold other products, including meats, wine, and orange juice.

Specialty food stores suffered along with many other businesses that sold top-shelf products during the economic recession at the end of the first decade of the 2000s, but by 2011 recovery was on the horizon. According to the National Association for the Specialty Food Trade's (NASFT) 2011 state of the industry report, about $55 billion of specialty foods were sold at retail venues in 2011. This included a range of foods, including meat, chips, bread, and baked goods, but cheese was the largest category in terms of sales, earning $3.23 billion. Yogurt and kefir represented the fastest growing segment, with sales rising 61.5 percent between 2008 and 2010. The NASFT also reported that natural food stores were the fastest growing retail channel in 2010, with sales up 14.7 percent since 2008.

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News and information about Dairy Products Stores

Prosperity begins to return
Daily News (Los Angeles, CA); January 10, 2011; 700+ words
...census. (May 9, 1935) Sun King Store Will Open Here One of the famous O'Keefe and Merrit company's Sun King Dairy Products stores will be located in Van Nuys soon, as a result of a lease signed Saturday by B. Giras for the store room at 6374...
Resampling of industries.
PPI Detailed Report; July 1, 2000; 514 words
...for these industries appear in table 5 of the PPI Detailed Report. (Table 5 also includes data for SIC 5451, Dairy Products Stores in an aggregate index for SIC 54, Food Stores.) For further discussion of these new indexes, see "Retail trade...
Retail sector employment trends: dairy is in, clothing is out.
Chain Store Age; February 1, 1998; 688 words
...conditions of the industry segment itself, as well as any retail store expansion. The rapidly expanding sectors: Dairy products stores (SIC 545) saw incredibly strong employment growth over the last two years, up 21% in 1996 and about the same...
Population growth and new marketing concepts fuel job growth for the retail food industry.
Food Review; September 1, 1993; 700+ words
...and fish TABULAR DATA OMITTED markets; fruit and vegetable markets; candy, nut, and confectionery stores; dairy products stores; retail bakeries; and other specialized stores selling such foods as coffee, spices, and vitamins. Most Jobs...
Retail trade industries in the PPI.
PPI Detailed Report; July 1, 2000; 700+ words
...and SIC 5499, Miscellaneous Food Stores. An index aggregation for SIC 54 also will include data from SIC 5451, Dairy Products Stores. The largest industry within Food Stores is SIC 5411, Grocery Stores. This industry is further broken down into...
Oklahoma City-Based Dairy Store Tries Out Product Expansion.
Knight Ridder/Tribune Business News; May 6, 2003; 390 words
...further expand their product line, Braum's Ice Cream and Dairy Stores are test-marketing...meats in 15 Oklahoma stores. "We've always been...the freshness of our products, and we're experts...bakery products. Four stores soon will join the test...manager of the Braum's ...
are you ready for CLONED CUISINE? Meat and dairy products from cloned animals may show up in stores in 2007.(NEWS)
Star Tribune (Minneapolis, MN); December 29, 2006; 700+ words
...allow cloned meat and dairy products into stores and restaurants, possibly...moratorium on meat and dairy products from cloned...the purchase of U.S. dairy products. But Will Hueston...But one Minnesota store owner said the public...
Hygiene, Sanitation And Safety Tax: The Federal Supreme Court Held That Provincial Authorities Can Only Control The Hygiene, Sanitation And Safety Of Dairy Products Inside Local Stores.
Mondaq Business Briefing; March 14, 2012; 589 words
...distribution and sale of dairy products that intend to enter...distribution and sale of dairy products that intend...sanitation and safety of dairy products that were introduced...which intends to resell dairy products in such jurisdiction...place other than local ...

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