Coca-Cola Is Betting Big On A New Kind Of Milk That Costs Twice As Much As Regular
The product is called Fairlife and it will sell for twice the price of regular milk when it hits store shelves nationally in December, Coca-Cola's North American chief, Sandy Douglas said at Morgan Stanley's Global Consumer Conference last week."It's basically the premiumisation of milk," Douglas said.Advertisement
The milk doesn't contain lactose and it has 50% more protein and calcium than regular milk, as well as 30% less sugar. transcript of his remarks.
The milk is made on a sustainable dairy farm with "fully sustainable high-care processes with animals" and "has a proprietary milk filtering process," he explained. "The test markets have been amazing, and we've created a joint venture with a bunch of dairy farmers who are innovative leaders in the dairy industry."This is the beginning of a long-term investment in the dairy business for Coca-Cola. "We're going to be investing in the milk business for a while to build the brand so it won't rain money in the early couple of years," Douglas said. "But like Simply [orange juice], when you do it well it rains money later."Advertisement
Coca-Cola's investment comes at a tough time for the milk industry. Fluid milk sales have been declining for the last four decades.
- Best yoga mats
- IndiGo to raise ₹4,000 crore through stake sale
- Supreme Court adjourns AGR case hearing to August 14
- ICICI Bank sets floor price for QIP at ₹351.36 per share — to decide on allotment on August 14
- McKinsey, Facebook, Amazon, Nokia — and some other companies looking for a product manager right now