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PepsiCo India forays into Dairy Products with Oats-Based Milk Beverage

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

May 6, 2017 13:00 IST
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PepsiCo India Holdingss Pvt Ltd, the maker of Quaker Oats, Lays chips and carbonated beverages like Pepsi, on 5 May 2017 entered the Indian dairy market by launching Quaker Oats Milk, a ready-to-drink beverage that combines milk and oats.

The company will initially sell two flavours of Quaker Oats Milk in 180 ml on-the-go cartons and will market them in India’s top cities and towns.

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

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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 company is entering the Indian 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.

In the past, foreign multinationals that tried to have an edge over Indian dairy market, have found that the market is dominated by cooperatives like the Gujarat Cooperative Milk Marketing Federation Ltd that owns the Amul brand.

The advantage PepsiCo has is its strong distribution and retail presence with 2.5 million outlets.

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