Coca-Cola evaluates the "natural" dairy market in Brazil

Coca-Cola evaluates the "natural" dairy market in Brazil

The objective is to boost the Brazilian dairy division of the company, which has experienced an increase in sales of 30% in the last year

The largest soft drink maker in the world wants to obtain a larger portion of the US $ 20 billion market for dairy products in Brazil.

Coca-Cola Co., which faces a decline in sales as consumers move further away from sugary soft drinks, indicates that it is producing Brazil's first "natural" yogurt, made without flavors, artificial colors or preservatives. The goal is to boost the company's Brazilian dairy division, which has experienced an increase in sales of 30% in the last year, according to Pedro Massa, new business director of Coca-Cola Brasil.

Coca-Cola, based in Atlanta, and its beverage industry competitors have sought alternatives outside the soft drink segment to boost growth as soft drink consumption declines. The company acquired in 2016 Verde Campo, based in the Brazilian state of Minas Gerais, and has invested close to 50 million reais (US $ 13.3 million) to expand the production of natural dairy products. Since consumers around the world are looking for healthier options, the company aims to remove artificial ingredients from their yogurt by the end of the month, and has plans to extend the measure to cheeses and other products by the end of 2019.

"Verde Campo is an innovation bet for Coca-Cola," Massa said in an interview.

Coca-Cola has invested to double its cheese production capacity and quintuple its capacity to make yoghurts, according to Verde Campo. The goal is to achieve growth of more than 30%, according to the company. Coca-Cola also has dairy operations in other countries, including the United States, under the Fairlife brand.

As part of its commitment to eliminate the artificial ingredients of Brazilian dairy products, Coca-Cola changed the way it purchases milk, acquiring it more immediately in fields and developing a program that helps farmers deliver milk with less bacteria, according to Alessandro Rios, president of Verde Campo.

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