Yogurt Nation

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So Hirshberg is looking for other options abroad, including buying organic-milk powder from a co-op of 35 family farms in New Zealand to reconstitute in limited amounts for Stonyfield products. He is discussing ways to finance the changes with his prospective partners. Hirshberg has also persuaded Danone managers in four European countries to move into organic products this year, and he expects 11 more countries to follow in 2007, assuming they can find the cows. He hopes demand from Europe will stimulate the supply of organic milk here and abroad.

But where does that leave Yoplait, which thus far has sat on the sidelines of the organic and probiotics trends? Analysts say it could buy its way in. The obvious target would be Horizon, the No. 2 brand in organic dairy products. But Waldron appears content to enjoy Yoplait's spot as the nation's No. 1 brand. He would say only that he is watching for the day when "emerging yogurt segments will have more mass appeal."

Until then, General Mills is finding new ways to ride the growth wave. Its cereal division has Yogurt Burst Cheerios, which means you can expect Kellogg's to respond with Yogurt Froot Loops, perhaps? The other yogurt brands, meanwhile, are too busy restocking grocery shelves to worry about rivals. "We can make this category explode even more," says Dannon CEO Dalto. "Then we can fight for market share."