Prepared Foods August 23, 2005, enewsletter

PepsiCo has made a new addition to its non-carbonated beverage portfolio -- and implemented one of its most powerful brands in the process -- with a line of flavored milk beverages called Quaker Milk Chillers. They are made with 2% reduced-fat milk and fortified with calcium and seven essential vitamins. Available in three flavors -- chocolate, strawberry and vanilla -- Quaker Milk Chillers is now in stores in the Northeast and Mid-Atlantic United States.

"Many people want the health benefits of milk, but they do not like the taste of plain milk. Quaker Milk Chillers enable them to get many of milk's nutrients in the form of a great-tasting beverage without all of the calories and sugar found in most flavored milks," said Chad Dick, director of marketing innovation, Pepsi-Cola North America. "So when it is time for a snack, we hope people will reach for Quaker Milk Chillers rather than a cookie or a candy bar."

Quaker Milk Chillers will be available in 14oz., single-serve plastic bottles in convenience stores, grocery stores, drug stores, mass merchandisers, school vending machines and select foodservice accounts. They are sweetened with a blend of natural and no-calorie sweeteners including sucrose, sucralose and acesulfame potassium. They have a similar nutritional profile to plain 2% reduced fat milk and qualify for PepsiCo's Smart Spot symbol because they contain 45% to 50% less sugar than the leading flavored milks and are regarded as an excellent source of calcium.

In addition, because they are produced using aseptic technology, Quaker Milk Chillers have a six-month shelflife, which is significantly longer than that of most flavored milks and plain milk products (which can range from two weeks to three months).

Quaker Milk Chillers will be supported with radio advertising, and a sampling/grassroots tour that will kick off this fall.