PepsiCo and Müller make start on new US yoghurt manufacturing plant

PepsiCo and Müller have begun work on the two companies’ new 82 acre, 350,000 square feet yoghurt manufacturing facility in New York state.

It is expected to be one of the largest yoghurt manufacturing plants in the USA, and will create more than 180 new jobs. The first phase of construction is scheduled to be completed in 2013.

Muller Quaker Dairy is a joint venture between PepsiCo and Müller Group, and the two companies entered the U.S. dairy market last month with a range of premium yoghurt products, including Müller Corner, Müller Greek Corner and Müller FrütUp.

To mark the construction of the facility, which is estimated to cost in excess of $200 million, the governor of New York Andrew Cuomo joined PepsiCo chairman and CEO Indra Nooyi and Müller CEO Heiner Kamps for the signing of a ceremonial steel beam in front of state and local government and community dignitaries, representatives of local and national dairy organisations, and members of local community organisations and groups.

In addition to building the Batavia facility, Muller Quaker Dairy will source its milk supply from U.S. 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 U.S., variety and innovation within the yoghurt category is said to lag behind other regions, especially Europe, with U.S. consumption of yoghurt and other value-added dairy products generally less than half that of Europe.