Aug 2, 2012
PepsiCo and Theo Muller officials along with Gov. Andrew Cuomo praised the efforts of local leaders to convince the two international companies to locate their new yogurt plant in Batavia.
The executives, elected officials along with a host of local dignitaries gathered at the new Muller Quaker Dairy plant in the Genesee Valley Agri-Business Park today for a dedication ceremony for the new plant.
Indra Nooyi, CEO of Pepsi, said once it was time to make a decision about the location for the plant, Batavia was an easy choice.
"I must say the Genesee County people and the governor’s office were just amazing in the way they worked with us," Nooyi said. "There was no competition. We love being here. The Genesee County people have to be given a lot of credit, the way they brought the forces of the county together to get everything expedited in such a short time. I think it is a real textbook example of how to attract investment into any community."
Stefan Muller, the CEO of the newly formed Quaker Muller Dairy company, said the day that executives traveled to the Genesee Agri-Business Park, the amount of support Genesee County lined up for the visit was impressive. There were representatives from local government and utility companies making promises on delivery of what Pepsi and Muller would need to build the project.
"I have seen 60 sites that were just locations on a map and I have seen six sites personally, but what we saw here was just outstanding," Muller said. "We were promised to get all of the permissions within weeks and we couldn’t believe it."
Gov. Andrew Cuomo also praised Genesee County officials and said the effort to bring the Quaker Muller plant to Batavia is an example of how New York is open for business.
“We want business in New York," Cuomo said. "Business is the engine that drives the train, providing the jobs, providing the opportunity, providing the career ladder, providing the revenues to local governments. It’s all about making the private sector run and making the private sector run well and government partnering with that private sector. “
Yogurt, Cuomo said, is quickly becoming a big part of New York's economy -- production is up 60 percent in the past few years and there are now 49 yogurt plants in the state. He said the state is committed to ensuring the yogurt industry succeeds.
"We believe in the yogurt story and we’ve invested in the yogurt story," Cuomo said. "It is a big, big business in the State of New York."
He announced an Aug. 15 summit of leaders in the yogurt industry and dairy leaders to help facilitate, he said, the two groups working together to grow the yogurt industry.
"We want this business to do well," Cuomo said. "We want this business to thrive and we want this business to thrive in the State of New York."
Pepsi is committed to growing in the nutritional food categories, and dairy in particular, Nooyi said.
"Dairy products are a $500 billion industry that is expected to grow rapidly in the high single digits," Nooyi said. "We believe that here in the United States the growth potential for dairy is virtually unlimited."
The yogurt market, she said, is "largely untapped." The per-capita consumption of yogurt in the U.S. is half what it is in many other countries."
Muller said the new product is sweeter than what Theo Muller makes in Germany to meet U.S. consumer expectations and Nooyi praised the new yogurt.
"The Muller Quaker Dairy line is going to bring a whole new taste experience to America that’s not like anything that’s available in the country today," Nooyi said. "Try it and you’ll see that it’s more rich than any other yogurt you've tasted.
"It’s creamier. It’s more delicious. It doesn’t have any chalky aftertaste. It's really something you’ll enjoy eating day in and day out, maybe even three or four times a day."
Muller said the online feedback on the new product has been fun to read.
"I read on the Internet, on a blog, one consumer was writing, she tried the product two weeks ago and she is writing it is insanely delicious," Muller said. "This was really, I think, the right comment."
Both chief executives praised their new business partner as the perfect fit for how each company would like to grow.
"I have to say it was good and smart that we took the time because we found the right partner with PepsiCo and the yogurt market is booming," Muller said. "It’s still a very small market compared to other countries and we have products which are very unique and are really outstanding for the American market."
Nooyi said Pepsi has the distribution system to get the new product onto store shelves throughout the United States.
She also said the two companies share a core value in being committed to their local communities.
"One of the reasons this is a great partnership is both companies are committed to growing our businesses and both are committed to growing our local communities," Nooyi said. "When this plant is complete next year, it will be one of the largest yogurt plants in the United States. It’s going to source largely from New York State dairy farmers and other quality suppliers around this great region. The best part is it will create 186 local jobs next year."
