Blog: Coca-Cola follows PepsiCo into US dairy
Michelle Russell | 6 December 2012
The Coca-Cola Co. has followed its rival PepsiCo with an investment in the US dairy sector.
The soft drinks giant this week said it is deepening its partnership with US dairy firm Select Milk Producers to drive expansion of the Core Power protein milk shake in the US.
The companies will share equity stakes in Fair Oaks Farms Brands, a newly-created company that will represent a portfolio of dairy beverages, including Core Power.
The deal will be Coca-Cola's first foray into the US dairy market and it appears the company has big plans.
In addition to Core Power, the firm has said it wants to create "an innovative portfolio of brands and products that feature the value-added nutrition of dairy".
Coca-Cola has not expanded on what this might include but it's possible yoghurt could be on its list if the firm is eyeing a step outside of the soft drinks arena.
The yoghurt category, however, particularly in the US, may not be an easy one to crack.
Rival PepsiCo started selling yogurt in the US through a joint venture with Germany's Theo Muller Group in July. It is also dominated by the likes of Chobani and General Mills.
Its closest competitor, however, PepsiCo also owns Russia's largest dairy firm Wimm-Bill-Dann and has a joint venture with Saudi Arabia's Almarai, so Coca-Cola will certainly have its work cut out if it wants to compete seriously.
New Zealand dairy group Synlait Milk revealed today (28 August) it has hit the "major milestone" of receiving regulatory clearance to begin exporting finished product from its new NZ$28.5m dry blendin...
ConAgra Foods has responded to investor criticism of its palm oil usage by committing to source 100% sustainable palm oil by December 2015....
Fresh produce growers in the EU have secured assistance from the European Commission in the wake of the Russian embargo and Brussels has indicated it would be prepared to step in again....
A quick note to say we are closed on Monday (25 August) for a public holiday in England and Wales - but there's plenty for you to peruse on the site before we return on Tuesday....
- On the money: Hormel still looking for M&A
- Consuming issues: The hunger-obesity paradox
- On the money: Hain expects continued organic gains
- Analysis: Market bets on higher Chiquita offer
- BRICs and beyond: Fonterra, Beingmate partnership
- Fonterra, Beingmate launch infant formula JV
- Parmalat nears Lacteos Brasil acquisition
- Switz rejects EU plea to bypass Russia export ban
- Mondelez eyes snacks categories in India
- Italy yoghurt woes lead to Emmi profit warning