“Exploring New Opportunities: Quaker’s Potential in Drinkable and Spoonable Oat-Dairy Products Amidst Market Challenges”
Drinkable or spoonable products that combine oats and dairy could prove to be a successful venture for Quaker. However, they must attract consumers by focusing on taste, texture, price, and packaging. Both oats and dairy boast better-for-you nutritional profiles, meaning that offerings like yogurt, smoothies, kefir, or other products making credible health claims could resonate well in the market—especially when associated with a reputable brand name and logo. Additionally, incorporating fermented products could provide a trendy edge. Quaker’s patented process reportedly breaks down carbohydrates into simpler metabolites, which may enhance digestibility and the absorption of vitamins, minerals, and other nutrients, such as calcium citrate with vitamin D and magnesium. Yet, whether this co-fermenting method will captivate consumers remains uncertain; Quaker will need to address this with clear and concise on-package messaging that effectively communicates the claimed benefits without being overly complicated.
Chobani has successfully connected with busy consumers through its popular Chobani Flip, a yogurt snack that includes crunchy add-ins like nuts, chocolate pieces, and graham cracker bits. The brand has also revitalized declining Greek yogurt sales by launching a children’s line, squeezable yogurt condiments, a lower-sugar range, and updated packaging. Similarly, Danone is innovating by providing reduced-sugar yogurt through its Two Good line and plant-based options under its Good Plants brand. Nevertheless, expanding yogurt offerings—co-fermented ones included—might not be the most strategic move at this time, as the market is already saturated and sales have been declining. Yogurt sales have dropped by 6% in volume as of February this year, according to Nielsen data cited by The Wall Street Journal, with Greek yogurt sales experiencing an 11% decline during the same timeframe. Meanwhile, the variety of yogurt products available in retail stores has increased by 4% since 2015.
Furthermore, PepsiCo and Quaker Oats should approach this market with caution due to the previous partnership between PepsiCo and the Theo Müller Group, which produced Müller Quaker Dairy yogurt products but ultimately failed to engage consumers and ended after three years in 2015 due to intense competition. According to Forbes, PepsiCo is investing in dairy as a strategy to move away from sugary soft drinks and other less nutritious options. The company is currently focusing on international markets, such as Latin America, where consumers are showing a growing interest in health and wellness, including products fortified with nutrients like calcium citrate with vitamin D and magnesium.
