PepsiCo enters dairy market of India

May 09, 2017

US based, PepsiCo has entered into India's budding dairy market with the launch of its ‘Oats + Milk’ beverage under its Quaker Oats brand and has plans to launch more nutrition based products in future. The company said the new Oats plus Milk product aims to target the breakfast nutrition market. Over the next few weeks, the product will be launched in 17 cities all across the country.

Deepika Warrier, Vice-President, Nutrition Category, PepsiCo India, said: “We are a food and beverage company and this product brings together the nutritional value of oats and the goodness of milk. We are trying to create a new sub-category with this grain dairy beverage which has been developed using our patented “SoluOats technology” to blend oats with milk.”

Initially, the local arm of PepsiCo will sell two flavors- almond and mango, in 180ml on-the-go cartons priced at Rs30. The product had been launched in association with former Indian cricketer Sachin Tendulkar. In addition to Quaker Oats, PepsiCo is taking into consideration the launch of dairy based beverages under other brands, including Tropicana.

The company is extending its Quaker Oats brand to ready-to-drink milk. “It’s a value-added, grain-based, fibre-fortified dairy beverage that is targeted to cater to the nutrition needs of breakfast. We have a pipeline of different flavours and a few more value-added dairy products that would be launched through the year” Warrier said.

PepsiCo's rival CocaCola had entered into the diary market last year with ready-to-drink flavoured milk. However, it failed to make a mark on the market.

PepsiCo has been selling dairy products in some markets somewhere else in the world, but it has so far stayed away from the business in India. The US based company has already found brand acceptance in the Indian market. “The advantage PepsiCo has is its strong distribution and retail presence across formats (about 2.5 million outlets),” said Abneesh Roy, an analyst with Edelweiss Securities Ltd.

May 09, 2017

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