PepsiCo to form JV with German dairy company

US-headquartered food and beverage producer PepsiCo is set to form a joint venture with German dairy company Theo Muller Group in an effort to enter the fast-growing yoghurt market.

Under the new venture, which is likely to be announced in a few weeks, Pepsi and privately-held Muller will launch a new yogurt brand in the US.

This move fits in with PepsiCo’s strategy to more than double sales from healthy drinks and snacks to $30bn by 2020.

A PepsiCo spokesman told Reuters that since forming the Global Nutrition Group to accelerate the growth of its nutrition portfolio, the company is constantly looking at product innovation and partner offerings to help achieve this mission.

PepsiCo, whose products include Tropicana orange juice, Lay’s potato chips and Quaker oatmeal, currently does not have a dairy business in the US.