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PepsiCo enters dairy market with Quaker Oats + Milk

17-May-2017
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PepsiCo enters dairy market with Quaker Oats + Milk

PepsiCo India on Tuesday launched a new product - Quaker Oats + Milk as part of the leading food and beverage company’s bid to build a portfolio of healthy and nutritious products for the Indian market. The new product is an addition to Quaker’s expanding breakfast portfolio and is the company’s first ever dairy product. This packed beverage is PepsiCo’s third new product launch in the last three months.

With this product launch, PepsiCo is looking to grab a share of the value added dairy market which is worth approximately USD 1 million. The value-added dairy is a sub-segment of the USD 20 million dairy market. Calling the category a huge opportunity, PepsiCo CEO, D Shivakumar said, “We have very great aspirations for this segment. It is a segment that is expected to see double digit growth in the next five years.”

PepsiCo will be looking to initiate marketing campaigns across all mediums after strengthening and scaling up distribution over the next month. Deepika Warrier, Vice President - Nutrition Category, PepsiCo India, said that for the time being, the company will focus its energy on “consolidating the three product launches of 2017, and getting the right education, trials and sampling activities going. We are going to be investing a lot of our marketing budget behind sampling the product in addition to educating the consumer about the goodness of the product.”

Quaker Oats + Milk that comes in two flavours – mango and almond, will be introduced in 16 cities across India with a special focus on the four south Indian states where Quaker has a stronger presence. While PepsiCo will be tapping into digital advertising to engage with its core target audience - millennials - the company will invest in mainstream media in South India where the products will be introduced in 10lakh+ cities. Warrier said the company has plans to develop other beverage variants using the soluble oats technology that is used in Quaker Oats + Milk.

Speaking about the significance of oats, Warrier said that oats is the faster growing segment in the breakfast cereal category and is a highly unpenetrated market, therefore offering huge growth opportunity.

Warrier called the launch of the product a category creation and said that one of the main challenges of introducing a never before tried product is to educate consumers of the goodness of the product.

The company may introduce more new products towards the end of the year, Warrier said. She added that the Tropicana Essentials portfolio will soon see more additions.


The product has been co-created by legendary cricketer Sachin Tendulkar who has worked closely with the R&D team at PepsiCo India, providing insights from his sporting career and hectic lifestyle, to develop the product.

Quaker Oats + Milk is available in the Philippines under the brand name Quaker Good Start.

The product will be priced at Rs 30 for a 180 ml tetra pack.

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