Transforming a struggling local legacy into an industry leader.
The Challenge
Founded nearly 100 years ago in 1927, Oberweis is a dairy business local to the Illinois and Wisconsin region. Known for its superior tasting milk and ice cream, the company also offers a signature, nostalgic service: Milkman delivery.
It’s also a family business facing major headwinds. Until last year, the business touted four generations of consecutive leadership from the Oberweis family. Under financial strain, the most recent member of the family leadership resigned, and in April 2024 the company declared bankruptcy.
Oberweis wasn’t paying attention. The company not only ignored rising consumer trends, but also failed to gain traction in multiple efforts to expand the business. How can this heritage business successfully move into not only a new era for the company, but the dairy industry? Can Oberweis grow into the future while sticking to its roots?
What I Did
Strategic Research (Brand and Industry)
Consumer Research, Interviews, and Insights
Audience and Design Target Segmentation
Repositioning
Visual Rebranding
Brand Architecture and Story
Business Expansion Strategy
The Outcome
A hometown favorite with the best-tasting milk around has a big new vision: Revitalize the legacy of Midwestern dairy.
This thesis project was completed under the guidance of Gerardo Herrera, Petrula Vrontikis, Susan Gornell, and Lauren Cantor.
ArtCenter College of Design
Course: GBDS-665-01 Capstone
Awards and Recognition
Research
Statistics
+8 million
Milk is popular. 8 million more gallons of milk were sold in 2023 than in the year prior.
70%
Milk is delicious. 70 percent of people surveyed say they drink milk because they love the taste.
#1
Milk rules dairy. Milk is ranked as the fastest-growing market segment in the dairy sector.
91%
Milk is essential. 91 percent of households consider milk a staple item to purchase at the grocery store.
U.S. Milk Market Size
Dairy Milk vs. Alternative Milk Drinkers
Summary Milk Industry
Key Selling Points
Functional
Nutrient-dense
Familiar
Value and Versatility
From the Earth
Natural, Whole Food
Threats
Disease
ie, Bird Flu outbreak
Increasing Lactose Allergies
Allergies becoming more common
Alternative Milks
New non-dairy milks are developed frequently
Trends
Ethical Consumption
Sustainability, Farm-to-table, Animal Rights
Health Benefits
Probiotics and Protein
Clean Label
Hormone-free, Organic
Customer Journey Map
Competitive Analysis Highlights
My process included:
Blue Ocean Strategy Canvas
Industry Brand S.W.O.T. Analyses
Business Model Canvas (Milk Segment of Business)
Chess Game and Magazine Cover Exercises
Customer Journey Map
Competitor Mapping
and more
Interview Insights
People care where their dairy comes from for fundamental, emotional reasons. Across varied demographics, from women in their 60’s to nonbinary people in their 20’s, common factors come through when people get to talking about why they drink milk, and why they choose the dairy provider that they do. Human motivators like Recognition, Connection, and Enjoyment are amplified by factors and preferences having to do with Information, Familiarity, and Ethical Consumption.
I interviewed people in Oberweis’s Aspirational Audience (People Who Care Where Their Milk Comes From — see infographic). To get an even deeper picture of their motivations, I specifically spoke to people who were dairy delivery customers, as this is such a distinguishing offering for Oberweis’s brand.
Selected Quotes
“The cows only get milked when they want to. They use a type of machine that can be kicked off by the animal if they choose. I want to buy their milk because they do right by their cows.”
“My Dairy is exceptional, and not every Dairy is. It’s important to know if the milk you’re getting is good for you. My Dairy flash instead of constantly pasteurizes, which preserves the good bacteria and the health benefits of milk. Think about the health of the animals, and your own health.”
“I drink milk because it’s the way my family was. Familiarity was the reason we went with this dairy.”
Oberweis’s Competitive Advantages
Synthesizing the findings from my strategic research with these interview insights led to the distillation of Oberweis’s core competitive advantages: Family Farmers, Familiarity, and Quality.
Meet the Dairy Champions Design Target
People passionate about nature’s original superfood, from how it’s made to how it tastes, who want to inspire others to get closer to the food they eat.
Dairy Champions are driven by learning and engaging. They’re the ones always on the lookout for what’s next in dairy, from a delicious new product to an innovative way to work with the animal. This group is also motivated by a sense of recognition: Being the ones “in the know”, and growing their sense of community by sharing their discoveries, whether they be amateur or expert.
So, how might this group influence the development of Oberweis’s strategy as they move into their next era?
From left: @farmerwill_, @iowadairyfarmer, @modfarmchick, @chefdanbarber
Strategy
Proposed Business Expansion
These innovations for Oberweis’s business model are the product of growing consumer demands per my research, the Aspirational Audience's needs, and the Design Target's values. They fall into the verticals of Product (Milk, Delivery), Experiential (Consumers), and Educational (Farmers).
Blue Ocean Strategy Canvas
This canvas reflects the positioning of Oberweis’s future state versus its current competitors. I’m proposing they focus on activating categories circled in green, which are aligned with the proposed areas of expansion to the left.
The consumer-facing experiential arm of the new vision for Oberweis. The Farms includes educational and inspiring tours from real farmers and experiences to activate new Dairy Champions.
The Farmer Forum is an opportunity for Oberweis to leverage its premium reputation for inspiration, not exclusivity, and actualize its vision for stewardship of the next generation of small farmers.
Reserve is a hospitality experience on the Farms allowing the brand to showcase their super premium product in a focused, flexible, and innovative fashion.
Brand Architecture
Brand Purpose
To reinvigorate the legacy of Midwestern dairy by celebrating small farmers and investing in what they make.
Brand Positioning
We are the only pioneering milk partners helping proud dairy champions to feel close to their food.
Societal Purpose
We want everyone to spread the word that responsibly-made dairy is better for humans, animals, and the earth.
Brand Belief
Oberweis believes that bringing people closer to their food brings them closer to their communities.
Values
Brand Tagline
More than milk.
Brand Story
We’re driven by commitment: To the beauty and resilience of our region, the future of our family farms, and the remarkable taste of our milk. The commitment to dairy that is even better for you and our community than you realize. We know dairy is alive and well. We know the cows and the humans that care for them are our most important partners. It’s true we’ve been around for a while. At Oberweis, we know we didn’t invent milk. But we’ve been on a mission to perfect it for nearly 100 years.
Previous Typemark
Refreshed Typemark
Applications
Sources
Statista Market Insights, “Milk Market in the U.S.,” 2024
Mintel, “Milk and Non-Dairy Milk,” 2023
Mordor Intelligence, United States Dairy Market
Stylus Research, Dairy Sector Outlook, 2024-25
Oberweis Dairy Inc., Chapter 11 Filing, U.S. Bankruptcy Court for the
Northeastern District of Illinois Eastern Division, Case No. 24-05385