PepsiCo turns to yogurt as it begins "snackifying'' beverages and "drinkifying'' snacks

PepsiCo has been trying to accelerate the growth of their nutrition portfolio, aiming to more than double its revenue from nutritious drinks and snacks to $30 billion by 2020.

Currently, most of PepsiCo's sales remain skewed toward less healthy products, and they still rely heavily on their beverage unit, which is under-performing rival Coca-Cola.

Part of the company's nutrition strategy involves "snackifying'' beverages and "drinkifying'' snacks. They're creating products combining fruit, grains and dairy, recently launching a fruit purée in the U.S. that's thick enough to be a snack, and an oatmeal-based drink in Latin America.

On the diary front, PepsiCo is turning to yogurt. They plan to create a joint venture with German dairy company Theo Müller Group, and launch a new brand in the U.S. The yogurt market in the U.S. has roughly doubled in the past decade.

The venture is expected to be unveiled in coming weeks.

Source: The Wall Street Journal

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