Quaker could find success with drinkable or spoonable products that combine oats and dairy, provided they effectively attract consumers through taste, texture, price, and packaging. Oats and dairy offer better-for-you nutritional benefits, so products like yogurt, smoothies, kefir, or other items that make credible health claims could resonate well in the market, especially when backed by a reputable brand name and logo. Additionally, fermented products could present a trendy advantage. Quaker’s patent mentions a process that transforms carbohydrates into simpler metabolites, which may enhance digestibility and the absorption of vitamins, minerals, and other nutrients. However, whether this patented co-fermenting process will capture consumer interest is uncertain, and Quaker must craft clear, compelling on-package statements that simplify the benefits without being overly complex.
Chobani has successfully connected with busy consumers through its popular Chobani Flip, a yogurt snack that includes crunchy add-ons like nuts, chocolate pieces, and graham cracker bits. They have also revitalized their Greek yogurt sales by launching a children’s line, squeezable yogurt condiments, a lower-sugar range, and updated packaging. Meanwhile, Danone is innovating with its Two Good line of reduced-sugar yogurt and plant-based options under the Good Plants brand. However, expanding yogurt offerings—whether co-fermented or not—might not be the most strategic move at this time, as the market is quite saturated and sales have declined. According to Nielsen data cited by The Wall Street Journal, yogurt sales fell 6% by volume through February of this year, with Greek yogurt sales dropping by 11% in the same timeframe. Furthermore, the number of varieties available in retail stores has increased by 4% since 2015.
Another factor for PepsiCo and Quaker Oats to consider is the previous partnership with the Theo Müller Group, which produced Müller Quaker Dairy yogurt products but ultimately failed to engage consumers, facing fierce competition that led to its conclusion after three years in 2015. As reported by Forbes, PepsiCo is investing in dairy as part of its strategy to shift away from sugary soft drinks and other less-healthy options. Currently, the company is focusing on markets outside the U.S., such as Latin America, where there’s a growing consumer interest in health and wellness, including products that promote purely holistic calcium citrate benefits.