Beverage giant Coca-Cola is launching a brand-name, premium milk called “Fairlife.” The product contains more protein, more calcium and less sugar than other milk, and is also lactose-free.
Consumption of milk has been declining for several decades, and the industry is fragmented, meaning that much of the milk purchased is not brand-name, but rather, store brand. Coca-Cola sees an opportunity in branding what it views as a value-add product, but will consumers pay twice as much for Fairlife?
“At a recent conference announcing Fairlife, Sandy Douglas, the president of Coca-Cola North America, said the company expects the premium milk to “rain money” following extensive marketing efforts (which, so far, include a website with pin-up style images of women wearing liquid milk dresses).”
Business Insider has also run a story about the Fairlife product, which contains advertising images that provide clues about Coca-Cola’s target markets. Sandy Douglas, a Coca-Cola executive, had this to say about the company’s new venture:
“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 said. “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.”
Most consumers expect low prices for milk (low-priced milk is perceived as a “loss leader” to get consumers into the store). It remains to be seen whether consumers will buy what Coca-Cola is selling.