India’s milk cooperative goliath Amul is set to expand its US dairy business beyond milk, with plans to start producing dahi and paneer locally through the American cooperative with which it has a tie-up for fresh milk.
The move comes as Amul’s fresh milk business in the US is gaining traction. Fifty-three-year-old Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets the Amul brand, has presence in 38 of the 50 US states through Indian grocery stores as well as mainstream retail.
Amul Gold with 6% fat milk is also being sold through Costco, taking the Indian dairy brand deeper into mainstream American retail. The company plans to use this expanding retail footprint to add more products to its US portfolio, Amul Managing Director Jayen Mehta told FE.
The local production model is central to this strategy. GCMMF partnered with Michigan Milk Producers Association (MMPA), a farmer-owned US dairy cooperative, in 2024 to launch Amul’s fresh milk. Established in 1916, MMPA, which has members across Michigan, Ohio, Indiana and Wisconsin, supplies the milk from its farmer members and provides the dairy infrastructure for processing. Amul brings with it the brand name and formulations to the market. Interestingly, Amul neither has an investment in it nor does it own any assets in the US.
“Amul as a brand is getting into mainstream Indian grocery, expanding its retail presence and expanding its portfolio through this unique branding exercise,” Mehtasaid adding that apart from milk, they would soon start making dahi and paneer also in the US.
The US launch was significant for Amul because it was the first time the cooperative commenced branding milk procured outside India. Amul Gold, with 6% milk fat, was initially introduced through Costco stores on the East Coast in October 2024.
Amul’s US milk range includes Amul Gold, Shakti, Taaza and Slim n Trim, with fat levels of 6%, 4.5%, 3% and 2%, respectively. Amul Gold, with its relatively high fat content, has also found a use beyond the Indian diaspora. Mehta said mainstream consumers are increasingly using it as a “barista milk” because of its creamy texture and higher fat and protein content.
The shift towards local production also follows a broader change in Amul’s US strategy. While the Indian diaspora remains the principal consumer base, Mehta said mainstream acceptance is also increasing.
According to reports, Amul fresh milk is sold between $5.50 and $7 per gallon while local store brand milk is sold between $2.17 and $3 per gallon depending on the store’s location and the retailer. There are organic and ultra-filtered brands too in the USA that sell milk anywhere between $12 and $14 per gallon. Mehta said both the Indian diaspora and consumers in general love the taste of 6% full cream milk, and hence they pay the price premium.
Local manufacture of dahi and paneer would be the next step, allowing Amul to widen its portfolio while strengthening its local footprint. The company is also looking at other dairy products for the US market, including curd, buttermilk and fresh cream made from locallly procured milk. It may be mentioned that Amul Dahi and Paneer is presently exported to the US.
Nisha Sampath, brand consultant and partner at Bright Angles Consulting, a strategic advisory firm based in Mumbai, observed that while in India, Amul is famous as “Taste of India”, abroad it is about trust and good quality. It is the brand that is commanding the premium, she said.
The US experience is also influencing Amul’s overseas expansion elsewhere. The company has begun working with a cooperative in Spain to pack long-life milk in tetra packs and has launched the products in Spain, Portugal, France, Germany and the Netherlands. Mehta said the strategy is to expand one European market at a time. In Spain, Amul has tied up with Cooperative Ganadera del Valle de Los Pedroches (COVAP).
Amul exports dairy products to more than 50 countries, but the US push marks a significant shift in how it is building an international brand — combining local production and American dairy infrastructure with an Indian product proposition and an established brand.
An iconic tagline and advertising jingle says, “Amul doodh peeta hai India” (India drinks Amul milk). Mehta says, “Amul doodh piyegi duniya” (the world will drink Amul milk).