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The Wall Street Journal reports this morning that both General Mills and Groupe Danone SA are making a push into the drinkable yogurt category, creating a challenge to the soft drink companies that "have been launching smoothies and flavored-milk drinks to compensate for the slow growth of their soft drinks and to hedge the risk of being targeted by antiobesity advocates."

According to the WSJ, Danone is moving into the vending category with its drinkable yogurt products, a new strategy for the company that challenges traditional efforts by soda companies. These companies are encouraged by the fact that in less than five years, drinkable yogurts have grown to be 12 percent of all yogurt sales at $460 million in annual sales, with additional growth of more than 30 percent in the next four years.

But the drinkable yogurt category isn’t just a battleground between yogurt companies and soft drink manufacturers. It also is where General Mills and Danone are squaring off - together, they account for 70 percent of the US yogurt market.
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