PepsiCo Partners With Muller Group for a Yogurt Plant

March 20, 2012
$206 million Batavia, N.Y., facility expected in 2013.

PepsiCo, which has been hinting at a "tremendous opportunity in U.S. dairy,” created a joint venture with Germany dairy Theo Muller Group that will result in a new yogurt factory in Batavia, N.Y. The plant, expected on line in 2013, will cost $206 million and will employ 186.

There was no PepsiCo acknowledgement of the project, but the governor's office announced the building, which apparently will make Greek-style yogurt. The joint venture, dubbed Project Wave, apparently is getting some $11 million in tax abatements.

Greek yogurt has been growing at triple digits for the past three years. One media outlet said Greek yogurt now accounts for more than $1 billion in U.S. sales, about a quarter of total yogurt sales.

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