FDBusiness.com

Muller Quaker Dairy, a joint venture between PepsiCo, and the Theo Muller Group, has started construction of a 350,000-square foot state-of-the-art yogurt manufacturing facility on an 82-acre parcel of land in Batavia, New York. The site is situated in one of the US’s most concentrated milk-producing and processing regions. The first phase of construction is scheduled to be completed in 2013.

Muller Quaker Dairy entered the US dairy market last month with innovative premium yogurt products. It is the first entry by both PepsiCo and Muller into US dairy aisles. The products – Müller Corner, Müller Greek Corner and Müller FrütUp – are initially being sold through supermarket and club retailers in the Northeast and Mid-Atlantic.

“We’re excited to introduceU.S.consumers to the types of products that have made Müller a household name in many countries around the world,” says Stefan Muller, board member of Theo Muller Group. “Our joint efforts with PepsiCo will open the door to new yogurt options that we are confident consumers are going to love.”

In addition to building the Batavia facility, Muller Quaker Dairy will source its milk supply from US dairy farmers, with the majority coming from New York State and Northeast region dairy farms. According to data from Euromonitor, demand for value-added dairy is expected to increase in the coming years. In the US, variety and innovation within the yogurt category lags behind other regions, especially Europe. US consumption of yogurt and other value-added dairy products is generally less than half that of Europe.