Dairy Checkoff Helps Put New ''Milk Jugs'' into McDonald's Stores Nationwide.

Business Editors & Food Writers

ROSEMONT, Ill.--(BUSINESS WIRE)--May 26, 2004

America's dairy producers, through their checkoff program, have helped introduce lowfat (1 percent) white and chocolate milk in fun Milk Jug packaging as part of McDonald's new Happy Meal(R) menu choices, as the chain rolls out these new milk products in more than 13,500 McDonald's stores nationwide.

The Milk Jugs are kid-friendly, colorful, re-sealable, 8-ounce plastic containers of lowfat white or chocolate milk that feature Ronald McDonald riding a wave of milk. Starting in June, McDonald's will be the first fast-food restaurant to offer milk in this packaging nationwide.

"Dairy producers played a key role in this launch through their checkoff program investment," said Paul Rovey, an Arizona dairy producer and chairman of Dairy Management Inc.(TM) (DMI), which manages the national dairy checkoff. "If it weren't for our self-help program to build demand, this probably wouldn't have happened."

"Our investment in research to make milk more available to kids directly led to the Milk Jug offering at McDonald's," Rovey said. DMI conducted a year-long School Milk Pilot Test of more than 100,000 elementary and secondary school students that found that children consumed more milk when it was offered cold and in different flavors, and was served in fun, grab-and-go containers. McDonald's then conducted its own pilot test, which saw a 400 percent increase in McDonald's milk sales. "Results were so positive that the chain decided to introduce the Milk Jugs nationally," Rovey said.

"The launch of Milk Jugs nationally is an important step in our long-term initiative to make milk the beverage of choice for children," said Tom Gallagher, DMI chief executive officer. Checkoff-funded research shows that if the major fast food chains offered new milk products nationally, milk sales could increase by more than 200 million pounds annually.

Health professionals agree that milk and other dairy foods provide a powerful nutrient package for children. "I'm excited that McDonald's is doing its part to help kids get on their way to the recommended three servings of dairy each day," said Connie Diekman, M.Ed., R.D., director of university nutrition at Washington University, St. Louis, and member of the American Dietetic Association.

Checkoff, McDonald's Support for Milk Launch

National, state and regional dairy checkoff organizations are supporting the launch of Milk Jugs by conducting:

-- Media relations targeting the nation's health, nutrition and

food reporters

-- Local consumer-focused events

-- Promotions to moms through www.3aday.org and 3-A-Day of Dairy

e-mail newsletter

-- Support for point-of-purchase materials (such as in-store and

drive-thru signs and menu boards)

-- Outreach to health professionals about the new milk offerings

McDonald's, in turn, is making a significant investment by procuring white and chocolate milk in plastic packaging, as well as by conducting:

-- Print and television advertising

-- In-store merchandising

-- Staff training to "prompt" customers to choose milk with their

order

-- Public relations support that communicates milk as a healthy

beverage

"McDonald's realizes that offering single-serve milk is a great way to give kids a beverage they enjoy drinking, and that moms can feel good about providing," Rovey said. "It's a great partnership for McDonald's and dairy producers alike."

For more information regarding the McDonald's Milk Jug launch visit www.dairycheckoff.com.

Dairy Management Inc.(TM) (DMI) is the non-profit domestic and international planning and management organization responsible for increasing demand for U.S.-produced dairy products on behalf of America's dairy producers. DMI manages the American Dairy Association(R), National Dairy Council(R) and U.S. Dairy Export Council(R).

Editor's Note: High resolution graphic images of the white and chocolate milk containers are available. Please contact Jennifer Wing at 847-627-3225 or at [e-mail] for more information.