Tesco has thrown down the gauntlet to yoghurt ­giants Danone and Müller with the launch of a new 'patriotic' tertiary yoghurt brand that promises to be 100% British and 20% cheaper than "foreign" yoghurts.

The new range, called Yoo, will comprise 21 products in three formats low-fat four-packs, fat-free yoghurts and split pots. Tesco claimed the yoghurts would be 11p cheaper than any branded rival products, although it has yet to release pricing details for its new range.

At present Müller Fruit Corner yoghurt costs 61p in Tesco, while a Danone Activia fat-free strawberry yoghurt costs 65p [BrandView.co.uk].

The yoghurts would be made using 100% British milk, with packs "proudly" displaying the Union Jack, the supermarket said. Tesco also claimed its split-pot fruit yoghurts would contain more fruit than branded rivals such as Müller Corner.

Feedback from shoppers had suggested the yoghurt category needed to provide more new products, better quality and better value, said Tesco yoghurt buyer Matt Ward.

"We're confident that customers will see that we have addressed all those points with the launch of Yoo," he added.

The UK yoghurt market was lacking excitement and innovation, Ward claimed, and Yoo would reinvigorate the market by providing better quality and better value as well as new flavour profiles such as kiwi and gooseberry and chocolate chip granola.

Danone Activia Senior brand manager Natalie Brown said the yoghurt and desserts category had actually performed well in the past year, with growth of 4.2% [Nielsen NAT w/e 19 February 2011].

She also pointed to recent Activia innovations such as pouring yoghurt and new apple and caramel variants .

Tesco declined to say who was manufacturing the Yoo range on its behalf. The new yoghurts will carry a pack flash saying "exclusive to Tesco".

Müller declined to comment.