Active Stocks
Thu Dec 07 2023 13:43:35
  1. Bharti Airtel share price
  2. 1,003 -2.05%
  1. Tata Steel share price
  2. 130.35 -1.1%
  1. Power Grid Corporation Of India share price
  2. 229.8 2.41%
  1. Wipro share price
  2. 419.35 0.12%
  1. Tata Motors share price
  2. 720.85 -0.21%
Business News/ Companies / News/  PepsiCo to venture into India’s dairy market with Quaker Oats brand milk
Back Back

PepsiCo to venture into India’s dairy market with Quaker Oats brand milk

PepsiCo will sell two flavours of Quaker Oats and Milk, in cartons priced at Rs30

PepsiCo is considering launching dairy-based beverages under other brands like Tropicana. Photo: BloombergPremium
PepsiCo is considering launching dairy-based beverages under other brands like Tropicana. Photo: Bloomberg

New Delhi: PepsiCo India Holdingss Pvt. Ltd, the maker of Quaker Oats, Lays chips and carbonated beverages like Pepsi, is venturing into the Indian dairy market—one of the toughest for a foreign multinational to break into.

In a start, the US-based 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," said Deepika Warrier, vice-president (nutrition), PepsiCo India.

PepsiCo has been selling dairy products in some markets elsewhere in the world, but it has so far stayed away from the business in India. The local arm of PepsiCo will initially sell two flavours of Quaker Oats+Milk, in 180ml on-the-go cartons priced at Rs30, and will market them in India’s top cities and towns.

“We have a pipeline of different flavours and a few more value-added dairy products that would be launched through the year," Warrier said.

The company is also working on “fusions" (a mixed beverage with milk, fibre, fruits, and more), Indian dairy-based products like chhaas and lassi, and beverages catering to regional tastes.

Besides Quaker Oats, PepsiCo is considering launching dairy-based beverages under other brands, including Tropicana.

ALSO READ: Varun Beverages shares rally as much as 5% after new Pepsi units starts operations

PepsiCo is entering the dairy market at a time when domestic companies with big retail networks like ITC Ltd and Tata Global Beverages Ltd are also readying to tap the value-added dairy segment. Biscuit maker Britannia Industries Ltd has ramped up its dairy investments in the past couple of years.

In the past, foreign multinationals have found the Indian dairy market, dominated by cooperatives like the Gujarat Cooperative Milk Marketing Federation Ltd that owns the Amul brand, hard to crack.

Europe’s largest yoghurt maker Danone SA, which has made several attempts to penetrate India’s dairy segment, is yet to make a mark in the estimated Rs80,000-90,000 crore organized dairy market in the country.

Swiss packaged food company Nestle SA too took its time to establish itself after starting to sell milk in India in 1961. In more recent years, it ventured into other dairy products such as ready-to-drink flavoured milk, which it withdrew later, chilled coffee and yogurt.

In 2016, dairy as a segment accounted for more than 50% of Nestle India Ltd’s revenue.

“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, noting that PepsiCo also has found brand acceptance in the market."

(Sakshi Gupta contributed to the story)

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 06 May 2017, 12:36 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App