A dairy beverage containing propionic acid was produced using the adjunct starter cultures with Lactobacillus acidophilus and Propionibacterium freudenreichii ssp. shermanii. The impacts of temperature (30, 35 and 40 °C) and inoculation ratio (1:2, 1:4 and 1:8) on propionic acid production and viability of micro-organisms were studied. The incubation temperature had a significant adverse (P < 0.05) effect on the viability of P. freudenreichii and propionic acid production. Maximum amount of produced propionic acid (in 1:4–30 °C treatment) was 0.77%w/w. P. freudenreichii and L. acidophilus counts remained high (9 × 106 and 1.5 × 106 cfu/mL, respectively) after cold storage.