Kerry Dairy Consumer Foods has claimed a UK “category-first” with a new chilled brand, Smug Dairy, that blends oats and dairy.

Smug Dairy products will be available at Tesco, Sainsbury's Morrisons and The Co-op.

Kerry Dairy Consumer Foods is rolling out six products: three 'cheddar' alternative SKUs, two butter-style products and a milk.

The retailers will launch the products gradually from 25 March. Tesco and Morrisons will stock the full range by May.

The business said its aim with the move is “to bring real innovation into the dairy category and shake up binary perceptions of dairy and non-dairy markets”.

Kerry Dairy Consumer Foods also claims Smug’s cheddar cheese contains 35% less saturated fat and has a smaller CO2 footprint than “standard cheese”.

Citing YouGov and ComRes data, the company said one in four UK shoppers are now considering cutting down due to health, environmental and ethical concerns.

Victoria Southern, strategy, marketing and innovation director for Kerry Dairy Consumer Foods, said: “With this first-to-market category launch we are not only creating a new way for dairy lovers to do dairy with a bold and exciting new brand but also to creating a dairy category that is fit for the future.”

“The Smug Dairy portfolio has 40% less saturated fats and saves up to 54% less CO2e emissions per kilogram than traditional dairy, without any compromise on the rich and creamy taste that consumers love […].”

“This is an exciting launch for Kerry Dairy Consumer Foods as we continue to deliver against our mission to reimagine dairy through innovation and sustainability to inspire a better future.”