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Saturday, December 16, 2017
 PepsiCo Sees US Dairy Market Full of Potential  

The US market for dairy “remains largely untapped”, according to PepsiCo, which is pumping $206m into a new US facility to make yogurts and other dairy products as part of a joint venture with the leading Germany dairy company, Müller.

PepsiCo and Müller have announced they will open their first U.S. yogurt-producing facility at a business park in Batavia, New York.

The joint venture, called "Project Wave," is the latest announcement in what has become a burgeoning yogurt industry in New York. The project will be developed over two years, however products made at Müller factories elsewhere under the new ‘Wave’ joint venture will hit shelves in the US earlier than 2013.

"There is tremendous opportunity for new products to enter the U.S dairy market," said Jeff Dahncke, a Pepsi spokesman.

A Tremendous Opportunity To Enter a New Market

Why is PepsiCo entering the dairy market? PepsiCo spokesman have stated, “greater consumer awareness of the health benefits of dairy has recently sparked greater demand for high-quality dairy products. Per capita in the US, consumption of yogurt and value-added dairy products is one-third that of Europe. There is tremendous opportunity for new products to enter the US dairy market.”

Asked why PepsiCo was confident it could cash in, she said: “The joint venture brings together two companies with complementary strengths.

“PepsiCo is the largest food and beverage business in the US, with a leading position in health and wellness thanks to popular brands like Quaker and Tropicana, and expertise in taste and go-to-market logistics and marketing.

“Müller has the technical dairy manufacturing expertise and is well-known for producing Europe’s most unique and delicious yogurt.”

PepsiCo entered the dairy category in early 2009 via a joint venture with Almarai, the largest juice and dairy company in the Middle East. More recently it coughed up a cool $3.8bn for a controlling stake in Russia’s largest dairy firm Wimm-Bill-Dann.

Germany’s largest privately-owned dairy producer, Theo Müller has built up a sizeable market share in the UK yogurt category in recent years with Müller Light, Müller fruit corners, Müller Rice, Müller Vitality (with pre- and probiotics), kids’ brand Müller Little Stars and new luxury dessert yogurt range Amoré.

It has also established a strong presence in several other European markets and entered the Israeli market in 2008.

Source: Food Navigator

http://www.foodnavigator-usa.com/Market/PepsiCo-US-dairy-products-market-is-nowhere-near-its-full-potential
 


Posted on Tuesday, February 28, 2012 (Archive on Tuesday, March 06, 2012)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org
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