Fage - Greek Yogurt Branding Strategy

The yoghurt production and distribution facility of Fage USA Dairy Industry in Johnstown, New York, US, is undergoing expansion. The plant produces several varieties of its Greek-style yogurt products, for which there is huge demand in the US. The products are marketed across the US and distributed through natural and speciality food stores and supermarket chains. The plant opened in April 2008 at an investment of $148.3m, it employs more than 170 people and has a capacity to produce 85,000t of yogurt annually.

Fage USA Dairy Industry is a subsidiary of Fage Yogurt, a Greece-based yogurt company. Fage Yogurt operates three plants in Greece and is a major producer of yogurt, cheese and milk dairy products. The state-of-the-art yogurt Fage USA production facility, has a floor area of 145,000ft². The two-storey white-coloured building, houses four filling lines and a warehouse and includes four packaging lines, with a fifth line installed in 2011. The Fage USA yogurt plant is equipped with modern technologies and is designed to achieve Fage's authentic recipe. In April 2011, a $26m expansion plan was approved by New York's Planning Board for an additional 19,000ft². The space will be used for the installation of two bays to receive milk and for additional dry storage.

Marketing, as a business activity, aims at satisfying human needs and wants through competitive, differentiated products. The strategic brand development effort of FAGE SA in an international business environment, is of outmost importance for the staggering Greek Economy.

"TOTAL", a flagship brand of the FAGE portfolio, hit UK supermarket shelves in the early 1980’s. It was the first strained FAGE yogurt to be successfully launched in Europe and the numbers of those who love its indulgently rich texture and taste have continued to grow ever since.

Interestingly enough, and as part of competition, the French Dairy firm Danone launched their Greek-style yogurt product range and developed their integrated communications plan, in various European countries.



In parallel, Chobani, a turkish origin firm, has launched fruit-based Greek yogurt style products for the US consumers. A strained yogurt market has been developed for international consumers.

Is it the Greek FAGE, the French Danone or the Turkish Chobani who will manage the largest market share? In my understanding, the niche is there, a significant business opportunity. All it takes is innovative Marketing.