Milk's comeback is great news for Des Moines' AE Dairy
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The New York Times deemed 2025 the "Strangest Year" for milk, but it's turned out to be a "great" year for AE Dairy in Des Moines, says CEO Miriam Erickson Brown.
Why it matters: The family-owned operation is preparing to celebrate its centennial in 2030, despite national dairy turbulence.
The big picture: Milk consumption has declined for decades, partly driven by shifting diet trends — from the fat-free craze of the '90s to the rise of plant-based alternatives in the 2000s.
- But last year, whole milk sales rose for just the second time since the 1970s, per market research firm Circana.
- Plant milk consumption (which the Ericksons call "plant juice") went down 5.9% amid concerns over added sugars and ultra-processed ingredients.
What they're saying: AE Dairy benefits from a primarily Iowan customer base, where trends move more slowly in comparison to the coasts, Erickson Brown says.
- Its Des Moines plant distributes mainly around Iowa and neighboring areas like Kansas City.
Zoom in: Now that dairy is "in" again, AE Dairy is experimenting with high-protein products.
- It recently released a protein-enhanced yogurt and "Hi, Protein!" milk and chocolate milk.
- Dutch Bros, a popular coffee chain that's popped off on TikTok, is using AE Dairy milk for its protein coffees.
- Cottage cheese demand has also prompted the company to release new flavors.
Yes, but: In 2023, the Iowa Legislature legalized raw milk sales, which CFO Warren Erickson "wouldn't recommend" consuming.
The bottom line: "If you're asking us, milk has always had the natural story, the wholesomeness, the health benefits and the nourishment. It's always been a centerpiece of Iowa," Erickson Brown says.
- "So it's just nice to have the rest of the world acknowledge that."