And despite a steady nationwide decline in milk consumption in the last several decades and data indicating that consumers are “highly price-sensitive when it comes to milk,” Coca-Cola seems fairly confident in its upcoming premium milk venture.
During a recent press conference announcing Fairlife, Coca-Cola North America president Sandy Douglas reportedly predicted that the milk would “rain money.” To that end, the company has invested very carefully in a pin-up campaign, which has received mixed reviews.
Fairlife milk will contain “50-percent more natural protein, 30-percent more natural calcium and 50-percent less sugar than ordinary milk,” and will be sold “at a similar price to value-added milks, like organic, lactose-free, etc.,” which means approximately 65 cents more per quart than conventional milk, according to test markets.
Given that Americans are now drinking less soda than ever and that Coca-Cola is among the beverage industry giants that have pledged recently to reduce the calorie content of their products, their move to capitalize on the milk market is not a huge surprise.
If Coke is successful in creating demand for “Coke-Milk,” expect to see more companies make their way into the brand-name dairy business.