I still don't like that the first impression a consumer has is that the yogurt is made with milk from Icelandic cows, while in reality it's American cows.
These days, they're almost all made in Asia[3]. we'd like to think there's a small workshop where there cranked out by hand by craftsman, but that's rare these days - almost mythological [4].
The marketing then yes, is trying to sell you on the dream, or "legacy". But it's all smoke and mirrors. We're all pretty intelligent to understand this, but we want to believe, and we allow ourselves that suspension of belief. That's what the marketing is selling you, and that's what you're buying. You can't scale up Icelandic yogurt from Iceland, to sell to the masses of a country that's many times larger.
[0] http://www.prologuecycling.com/interview-mario-cipollini-cip...
[2] http://www.campyonly.com/history.html
[3] http://italiancyclingjournal.blogspot.com/2010/03/making-of-...
The point is that it's fantasy to think we can ALL reasonably buy an Italian bicycle, right now, even though demand may be great.
So instead we believe the myth of the Italian Bicycle For All by buying one with an Italian name, and perhaps with a sticker that says, "Fatto in Italia". The large Italian bicycle manufacturers may eve want to produce an all-Italian bike, but they can't - perhaps the technology they need isn't in their possession, or the techniques needed don't work scale well
It could even be a really good bicycle! But part of what I'm buying into is the myth that it's a really good, Italian Bicycle. For some reason, this is important to us humans, and we'll pay a premium even though the bicycle is made in the same factory, by the same workers as a bicycle that has labels from a domestic company.
So this, "Icelandic Yogurt" is just more marketable then calling it, "Icelandic-style Yogurt".
It's not a rare thing. Look in the ice cream isle for "Ice Cream", as well as "Frozen Dairy Dessert"[0]. Which one sounds better to you?
[0] http://consumerist.com/2012/09/11/new-breyers-recipes-when-i...
Of course this yogurt company is specifically seeking national distribution, and if the minimum viable batch size for their perishable, niche product is 5000 gallons that's probably best. But I'm still pleased that their milk (or yogurt) is not shipped here from Iceland for no discernible reason.