PepsiCo and Germany's Theo Muller Group to Enter U.S. Dairy Market With European-Style Premium Yogurt

PURCHASE, N.Y., July 9, 2012 /PRNewswire/ -- PepsiCo, Inc. (NYSE: PEP) and Theo Muller Group ("Muller"), the largest privately held dairy business in Germany, announced today their U.S. joint venture, Muller Quaker Dairy, will enter the growing U.S. dairy market in mid-July with innovative premium yogurt products that have never before been available to U.S. consumers. These products -- Muller™ Corner™, Muller™ Greek Corner™ and Muller™ FrutUp™-- mark the first entry by either PepsiCo or Muller™ into U.S. dairy aisles.

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Together, PepsiCo and Muller will complement each other's strengths and are expected to drive growth for both companies:

• PepsiCo brings scale as the largest food and beverage business in the U.S. and has unmatched innovation-driven research and development programs, a robust go-to-market system, and superior marketing and brand recognition across its portfolio of 22 billion-dollar brands. PepsiCo has a rich history of deep consumer insights and products with a legacy of taste and affordable convenience. The Quaker Oats Company, a unit of PepsiCo, brings one of the most trusted brands in the world and is known for wholesome breakfast and snack foods that provide nutritional benefits throughout the day.
• Muller has decades of category leading innovation and dairy expertise, having grown to become Germany's largest privately held dairy business, and one of Europe's most well-known yogurt producers.

Muller Quaker Dairy also will satisfy the increasing demand for value-added dairy products in the U.S., where variety and innovation within the category lags behind other regions, especially Europe.  U.S. consumption of yogurt and other value-added dairy products is generally less than half that of Europe*.

The following yogurts will be sold through supermarket and club retailers in 17 markets in the Northeast and mid-Atlantic U.S. starting this summer**:

• Muller Corner and Muller Greek Corner offer a new way to enjoy yogurt with add-ins you can flip, stir or dip. Corner varieties include Blueberry, Strawberry, Crispy Crunch, Choco Balls, Chocolate Flakes and Crunchy Granola. The Greek-style varieties include Honeyed Apricot, Strawberry, Blackberry & Raspberry, and Caramelized Almonds.
• Muller FrutUp varieties include Blueberry Bliss, Very Cherry, Luscious Lemon, Peach Passion Fruit, Radiant Raspberry and Splendid Strawberry, starting with fruit fresh from farmers and prepared onsite with the yogurt. The unique part is the fruit on top – perfect for scooping, swirling or mixing.

"As we've seen through the success of our dairy business in other parts of the world, this is a category with strong growth prospects," said Mehmood Khan, M.D., PepsiCo chief scientific officer, global research & development. "Muller makes some of Europe's most delicious and unique dairy products, and there is no better partner PepsiCo could have in order to meet historic U.S. consumer demand for premium yogurt. With the name recognition and trust Quaker provides, together, we will be able to offer U.S. consumers an amazing range of products that taste delicious and are unlike anything on the market currently."

"Our partnership with PepsiCo is a great expansion of our business, and we are excited to introduce new consumers to the wide variety of deliciously enjoyable yogurts that have made Muller a household name throughout Europe," said Stefan Muller, Theo Muller Group, member of the board. "Our capabilities in yogurt and other value-added dairy products, combined with the strength of PepsiCo's distribution systems, deep consumer insights, diverse portfolio of brands and expertise in areas like fruits and grains, will open the door to new options we think consumers are going to love."

Worldwide, the dairy category is expected to grow more than any other through 2016, exceeding the growth of the next two food and beverage categories combined*. This growth is driven by the progressively increasing consumer demand for packaged milk, yogurt and other value-added dairy products, and for other products containing dairy protein, probiotics, and calcium.

PepsiCo already holds a strong position in the global dairy products business. The company acquired Wimm-Bill-Dann, Russia's largest dairy company, in 2011 and has been part of a successful joint venture with Almarai, Saudi Arabia's largest dairy company, since 2009. PepsiCo has a previously stated goal of growing its global nutrition portfolio to $30 billion in revenue by 2020.

Investing in the Future of Upstate New York

The joint venture is building a new, state-of-the-art yogurt manufacturing plant in Batavia, N.Y.  Once completed in 2013, it will be one of the largest yogurt plants in the U.S., and is expected to create more than 180 new jobs in upstate New York.

*Source: Euromonitor 2011 data

** Markets where Muller Quaker Dairy yogurt will be available:  New York, Boston, Philadelphia, Washington, DC, Hartford/New Haven, Providence/New Bedford, Buffalo, Albany/Schenectady/Troy, Rochester, Portland, Baltimore, Harrisburg, Norfolk/Portsmouth, Greensboro, Wilkes Barre/Scranton, Richmond, Roanoke.            

About Theo Muller Group

Headquartered in Luxembourg, the Theo Muller Group is a holding company whose subsidiaries include a multinational dairy business.  The Muller brand originates in Bavaria, Germany and has been producing popular yogurt and other products for more than 100 years. Founded as a family dairy farm in 1896 by Ludwig Muller, today his grandson Theo owns the hugely successful business.

Under the management of CEO Heiner Kamps and members of the board Stefan Muller and Dr. Henrik Bauwens, the Theo Muller Group companies generate annual revenues of approximately $5 billion and have nearly 21,000 employees. http://www.muellergroup.com.

About PepsiCo

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo's people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo's promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. For more information, please visit www.pepsico.com.

About The Quaker Oats Company

The Quaker Oats Company, headquartered in Chicago, is a unit of PepsiCo. For more than 130 years, Quaker's brands have served as symbols of quality, great taste and nutrition. Holding No. 1 positions in their respective categories, Quaker Oats, Quaker Rice Cakes and Quaker Chewy Granola Bars are household favorites. www.quakeroats.com.

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For additional information on these and other factors that could cause PepsiCo's actual results to materially differ from those set forth herein, please see PepsiCo's filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

   

SOURCE PepsiCo, Inc.