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Kerry Shifts Focus from Hybrid Oats to All-Out Dairy Initiative

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Kerry Dairy Consumer Foods is discontinuing its hybrid product range launched in the UK under the Smug brand last year.

The business unit of Kerry Dairy Ireland plans to introduce a new range of dairy snack products next year.

The company claimed a “category first” when it launched Smug, which combined oats with traditional dairy. This six-product line featured three cheeses, two butters, and an alt-milk.

Marketing director Victoria Southern stated that these innovative products were aimed at “creating a new way for dairy lovers to do dairy.”

However, following listings at major retailers such as Tesco, Sainsbury’s, and Morrisons, the Smug hybrid range is now being phased out in favor of a comprehensive dairy snacking range under the same brand.

A spokesperson for Kerry Dairy Consumer Foods confirmed that the hybrid range is no longer being produced and will remain in stores only while stocks last.

The new snack range will launch in January; however, the spokesperson did not disclose specific retail listings.

Southern, who is the strategy, marketing, and innovation director at Kerry Dairy Ireland, commented on the discontinuation of the hybrid line: “While our dairy and oat-blended range delivered on taste and function, categories like milk and butter are difficult to disrupt.”

She added, “Our focus is now on leveraging Smug’s strengths to deliver new products that are delicious, stand out with playful branding, and clearly highlight nutritional benefits. These strengths are best applied in categories where consumers are more curious and willing to try new options.”

The upcoming Smug line, now redefined as an “adult-snacking dairy brand,” includes two flavors of Cheese & Crunch – sea salt and rosemary crackers, along with barbecue corn bites; and ‘Quarkies’ in two variants – raspberry and vanilla.

Kerry also owns the Strings & Things cheese brand, along with Dairygold cheeses and Pure Dairy-Free spreads, among other products.

This new Smug range is tailored to meet the growing demand for protein snacking, providing “portion-controlled options that feel both indulgent and nutritious,” according to the company.

Southern emphasized, “With our new selection of offerings, we’re introducing something genuinely innovative to the category: creamy, delicious dairy paired with bold flavors and formats that feel fresh, modern, and fun.”

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