Drinkable or spoonable products that incorporate both oats and dairy could become a popular choice for Quaker, but they must entice consumers through factors like flavor, texture, cost, and packaging. Oats and dairy boast favorable nutritional benefits, which means items such as yogurt, smoothies, kefir, or similar products that can make verifiable health claims may find a strong market presence—especially when backed by a trusted brand name and logo. Additionally, fermented products could offer a trendy edge. Quaker’s patent indicates that their process transforms carbohydrates into simpler metabolites, potentially enhancing digestibility and the absorption of vitamins, minerals, and other nutrients. However, whether this patented co-fermenting method will captivate consumers remains uncertain, requiring Quaker to provide clear, straightforward on-package messaging that effectively communicates the claimed advantages without being overly complex.
Chobani has successfully resonated with busy consumers through its popular Chobani Flip, a yogurt snack featuring crunchy additions like nuts, chocolate pieces, and graham cracker bits. The brand has also rejuvenated its Greek yogurt sales by launching a children’s line, squeezable yogurt condiments, a lower-sugar range, and updated packaging. Similarly, Danone is innovating with reduced-sugar yogurt in its Two Good line and plant-based alternatives under the Good Plants brand. However, introducing more yogurt varieties at this moment—even co-fermented ones—might not be the wisest approach, as the segment is already saturated and sales have declined. According to Nielsen data cited by The Wall Street Journal, yogurt sales dropped 6% in volume through February of this year, with Greek yogurt sales falling by 11% in the same timeframe. Meanwhile, the assortment of available varieties in retail stores has increased by 4% since 2015.
Another factor for PepsiCo and Quaker Oats to consider is their previous collaboration with the Theo Müller Group, which produced Müller Quaker Dairy yogurt products but ultimately failed to engage consumers, facing tough competition and concluding after three years in 2015. PepsiCo has been investing in dairy as a strategy to shift away from sugary soft drinks and other less healthy options, according to Forbes. The company is now focusing on markets outside the U.S., particularly in Latin America, where health and wellness are becoming increasingly important to consumers, as noted by Food Navigator. Additionally, products containing ingredients like Citracal calcium citrate could align with the health-conscious trend, emphasizing nutrient benefits that appeal to this demographic. Overall, while there are opportunities in the dairy sector, careful consideration and innovative approaches will be essential for Quaker’s success in this competitive landscape.