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Ted Mininni Ted Mininni   Bio
06.03.08

Manhattan Milk: What Was Old Is New Again

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Remember the milkman? Apparently, he’s back. Manhattan Milk delivers fresh, certified organic milk from Pennsylvania Amish farms (or rBST free milk from New York farms) for a nominal fee ($5 with a minimum $15 order) to any address in Manhattan in simple glass bottles.

milk.jpg

Customers place orders on the company’s web site. The glass bottles get picked up for reuse when the next delivery is made. How’s that for environmentally friendly packaging?

How’s that for a concept? Old-fashioned service at the door with high quality, fresh product. Not only can customers purchase milk, they can also buy organic cage free eggs, cases of water, juices, and assorted dairy products. Sounds like some great, old ideas are starting to make a comeback.
Since its debut in 2007, Manhattan Milk has been banking on WOM to catch on since it has no other distribution—except through NYC restaurant Batch. The local press has picked up the story, which has, no doubt, been a boon to the fledgling business. When New York Magazine and the NY Daily News hype a new brand, it’s better than advertising. How great is that?

Wouldn’t it be interesting if the supermarkets came clamoring for Manhattan Milk distribution rights? It’s almost impossible for small new start-ups to get into supermarket chains, after all. . .so it isn’t a bad idea to create demand from consumers themselves, is it? Besides, supermarkets can’t get enough organic milk into their stores. They might just come clamoring for this product. . .of course they would expect Manhattan Milk to sell them the product in cartons, no doubt.

It would be unwieldy for supermarkets to deal with returnable glass bottles. Or would it? They already have a means for handling returnable soda bottles with deposits. Would they be willing to find a way to deal with returnable glass bottles? Hmmmmm. . .

Legions of consumers have expressed dismay over hormone-laced mass marketed dairy products with their wallets, opting for more expensive organic products since the whole rBST controversy ignited a few years ago. The thought: injecting dairy cows with growth hormone might increase milk production, but at what cost to the animals—whose lives might be shortened by this manner of intervention—and at what cost to humans? Add to that, antibiotics and pesticides from most feed. . .and there’s a whole cocktail of interesting stuff besides milk in those cartons.

We really don’t know the long-term effects of ingesting all of these chemicals will be on human health, either. Many parents, uncomfortable with hormones in their kids’ milk, have chosen to go organic in increasing numbers. Hence, organic dairy is growing gangbusters.

Back to Manhattan Milk and some questions:
• What do you think of a fledgling company staking its survival on the old-fashioned concepts MM is using?
• Do you see this business model as being viable for today’s consumer?
• Would you be willing to purchase organic or natural dairy products and pay for home delivery?
• Are there other food products you’d purchase online if they were of high perceived value, if they were only available via direct home delivery?

I’d love to hear from you.



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Comments

Ted, this reminds me of the Organic produce delivery services that now operate. They deliver the produce in a bin and you return the bin every time so it is similar. So there is a modern precedent for this and it is a good idea.

• What do you think of a fledgling company staking its survival on the old-fashioned concepts MM is using?

I think it is great. At the risk of sounding trite, nothing ventured nothing gained. I wish them the best.

• Do you see this business model as being viable for today’s consumer?

Yes, with concerns about food safety and health becoming more and more important. As long as they can establish rock solid credibility in offering a healthier and safer product, I think they can succeed.

• Would you be willing to purchase organic or natural dairy products and pay for home delivery?

I am not that much of a milk drinker but if, for example, I had kids I would definitely be actively considering a service like this. However, I do not believe milk delivery has come to my city yet.

• Are there other food products you’d purchase online if they were of high perceived value, if they were only available via direct home delivery?

Produce direct from local farms (Community Support Agriculture type thing) and other food products that could be credibly shown to be healthier and safer. I personally live walking distance from a good grocery so right now I would not do it but I like the idea. If I were not so close to a good natural grocery, I would be actively looking into such options. Absolutely.

Posted by: Neil Anuskiewicz | 06.03.08

I meant "Community Support Agriculture" above and I had a very specific definition in mind:
http://en.wikipedia.org/wiki/Community_supported_agriculture

Posted by: Neil Anuskiewicz | 06.03.08

This post brings back sweet memories from my childhood. Every Sunday, after mass my family stopped at our grandparents farm house for brunch. When we were about to leave, grandma would go ladle fresh milk into a large glass apple juice jar. So fresh in fact, that when poured onto cereal, you could still see the bits of cream.

I would buy Manhattan milk more out of sentimental value, rather than for the potential health benefits.

But back to your questions Ted.

What do you think of a fledgling company staking its survival on the old-fashioned concepts MM is using?

It seems that every company is coming out with a green/organic product line. Meaning that if you want a brand to be perceived as a 'green' symbol you either have to spend a butt load of money for advertising, or in the case of a niche player like MM, be unique so that people take notice. I think taking advantage of nostolgic days of milkmen and using glass bottles is a great story, and totally appropriate for this company.

Do you see this business model as being viable for today’s consumer?

Great, profitable idea. Scaleable? Eh, probably not. A key part of the experience, I don't think glass bottles will ever be as efficient as plastic or cartons. Plus, while it would be great for MM to get shelf space in a major supermarket chain, is that really such a good idea? Wouldn't that defeat the purpose, and charming experience of at home milk delivery? Maybe sacrificing key elements that make the brand unique, for growth, is not always the best
path. Starbucks anyone?

Posted by: Jesse Kanclerz | 06.03.08

Thanks for your comments, Neil. I do think this is a viable business model since it offers great, dare I say old-fashioned customer service and highly desirable products. My only concern is that for businesses like this, whose profit margins are sometimes slim, what will the cost of gasoline do to those profits since they engage in home deliveries? And we all know what it's like to sit in traffic and idle during rush hour, don't we?

Your input is always appreciated, Neil. Thanks.

Posted by: Ted Mininni | 06.03.08

Great comments, Jesse. More than a few of us have fond memories of home-delivered, fresh milk. You're right: many would probably purchase this product out of sentimentality rather than health considerations.

Interesting point: if Manhattan Milk did get retail store distribution, I wonder whether that would kill its image as an old-fashioned home delivered line. . .at least for some consumers. "Maybe sacrificing key elements that make the brand unique, for growth, is not always the best
path." Well put, Jesse.

Thanks for weighing in. I appreciate it.

Posted by: Ted Mininni | 06.03.08

Ted,
This concept may 'seem' old-fashioned but in fact it has been thriving in smaller metro areas for some time. In fact, here in Boulder, we have COMPETING milk delivery services that will also deliver organic butter, ice cream, orange juice, etc.; Royal Crest and Longmont Dairy Farm.

The other service along these lines that comes to mind is the CSA (community sponsored agriculture) movement happening all over the country. Here in Boulder we have multiple farms who sell 'shares' of their product to consumer. Those consumers receive weekly allotments of locally grown produce depending on what is in season. All of the CSA's for our area sold out before the season began...

I think there will be alot of 'old-fashioned' ideas that have actually continued in rural or near-rural areas that will make a come back. Urban chicken farming, anyone?

Posted by: ted rockwell | 06.03.08

Wow, Ted, thanks for filling us in on what's happening in your part of the country with milk and food delivery services. I'm not aware of this continuing in more rural areas of the Northeast, as it is in the Boulder area, for example, so if DF readers are, please fill us all in.

Interesting about the CSA movement and thanks for cluing me in on it. What a great idea!

I guess this seems old-fashioned in the sense that these kinds of businesses offer a level of customer service modern consumers can only dream about, you know? It just seems that it's an old idea whose time has come again, Ted. I'm betting legions of consumers would love to get fresh, high quality product delivered to their doors--and they're willing to pay for it.

Thanks for adding so much to this conversation. I appreciate it, Ted.

Posted by: Ted Mininni | 06.03.08

I believe CSA is Community Support Agriculture (http://en.wikipedia.org/wiki/Community_supported_agriculture).

Ted, you bring up a valid point regarding the price of gas. If these vehicles ran on some sort of bio fuel that would probably better in more ways than one, including their marketing. It fits.

There could also be some efficiencies here. If I opted to have my milk delivered, i would almost certainly want other items too.

You would have sort of a menu. That way, some would choose just milk. Some milk, yogurt, cheese, ice cream, etc.

They might want to expand their options beyond dairy. The person who would have healthy milk delivered is presumably the same person who would consider other healthy, tasty items arriving at the door.

I think it might be prohibitively expensive to just deliver milk. But it is great marketing to start there as the inspiration is healthier milk and nostalgic for the iconic milk man.

I was born after the milk man had gone extinct but I am still nostalgic for the idea of the milk man. To me, it evokes an image of a time when milk was milk (no growth hormones, etc.).

I also think of tranquility, children playing, and an almost pastoral motif.

Those are powerful images and I was not even born yet!

Posted by: Neil Anuskiewicz | 06.03.08

Neil, I have seen it used both ways, so thanks for the additional info!
http://www.pachamama.org/content/view/139/68/

I also think the gas conversation is interesting, BUT one could make the argument that a mass delivery system is more efficient than having individuals drive to get their items. Plus the beauty of a CSA is that you an opt to pick up your produce at the farmer's market once a week (which we do on our bikes)...

One parting thought - we've heard of community gardens popping up, how about shared gardens? In other words, my neighbor grows the lettuce, I grow the cucumber, and the guy down the street grows the corn - we share food, and use the excess to earn some money for the households involved. Old fashioned co-op style.

Posted by: ted rockwell | 06.03.08

Great conversation, Neil and Ted. What's terrific about it is that good ideas emerge from this kind of exchange.

Neil: good suggestion about grouping foods from various sources for delivery all at once.

Ted: I am aware of just those kinds of shared community garden spaces. I believe there is one in Boston and another in the Bronx that I've heard of in the past, if memory serves me correctly. Chances are, there are more of these around the country. The beauty of these is that urban dwellers get to enjoy the pleasures of working in their own small patches of earth and enjoying the bounty of their labor.

Thanks, guys, for engaging in the conversation. I appreciate it.

Posted by: Ted Mininni | 06.03.08

Ted, I am suggesting that this milk Company might want to consider expanding their offerings at some point...

Posted by: Neil Anuskiewicz | 06.03.08

Neil,

From what I've read about MM, they do deliver other dairy products besides milk. What I keyed in on was your statements here: "They might want to expand their options beyond dairy. The person who would have healthy milk delivered is presumably the same person who would consider."

That added to Ted's comments got me thinking about the possibilities here. Of course, we have had, and probably still have in some communities, grocery deliveries from independents. Not to mention supermarket services like Pea Pod.

Thanks, Neil, for adding to this conversation. Much appreciated.

Posted by: Ted Mininni | 06.04.08

Ah, yes, you were talking about the broader opportunities here.

BTW, I do like the Ted Rockwell's idea that a mass delivery system may, in fact, be more efficient than all the small trips that people make to the store. It may in fact save resources, taking advantage of economies of scale.

Posted by: Neil Anuskiewicz | 06.04.08

Exactly, Neil. Ted's idea is a very valid one and would save precious fuel resources. For a company like MM, it might make sense to explore working with other small businesses that make home deliveries, so that they can improve efficiencies and even share the fuel costs. That would make the business more profitable for them, and save on customers' time and fuel costs, as well. Not a bad idea, huh?

Thanks, Neil.

Posted by: Ted Mininni | 06.04.08

I finally got around to order some products from manhattan Milk this week.
Such amazing bottle... I had to buy it.

But to my surprise, today I got the products... And the bottle doesn't look AT ALL like the one they show on their website (and pictured here).

And to makes matter worse, When I e-mailed them saying I was disappointed about it, Frank Acosta answers me:
"Sorry fabio but we are more interested. In our quality and service than a computer image on file I am sorry that you feel that way and hope you still entrust in our products"

Tsc, tsc tsc... Bad bad Manhattan milk...

Such a pitty. I had such a good image of the company.

Posted by: Fabio Resende | 06.20.08

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