The invention provides a method for producing a fermented milk that conveniently gives excellent taste and flavor orfunctionalities, such as antihypertensive effect, to fermented food and beverages. The method enables effective production of particular peptides having useful functions, such as antihypertensive effect, in the resulting fermented milk. The invention also provides fermented milk food and beverages utilizing the fermented milk, which have excellent taste and flavor and even functionality. The present method includes the steps of (A) enzymatically digesting animal milk casein with protease (1)containing particular proteases such as papain, and (B) fermenting animal milk casein or the like with lactic acid bacteria, to thereby produce VPP, IPP, and YP in the resulting fermented milk. The fermented milk food and beverages of the present invention contain the fermented milk obtained by the present method or a concentrate thereof, and VPP, IPP, and YP at or over particular contents.
