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.


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