Coca Cola to sell milk called FairLife

Blogger

NEW YORK -- Coke is coming out with premium milk that has more protein and less sugar than regular. And it's betting people will pay twice as much for it. The national rollout of Fairlife over the next several weeks is one way the world's biggest beverage maker is seeking to diversify its offerings as Americans continue turning away from soft drinks. It also comes as people increasingly seek out some type of functional boost from their foods and drinks, whether it's more fiber, antioxidants or protein. That has left the door open for Coke step into the milk case, where the differences between options remain relatively minimal. "It's basically the premiumization of milk," Sandy Douglas, president of Coca-Cola North America, said at an analyst conference in November. If developed properly, Douglas said it is the type of product that "rains money." Fairlife, which Coca-Cola formed in partnership with dairy cooperative Select Milk Producers in 2012, says its milk goes through a filtration process that's akin the way skim milk is made. Filters are used to separate the various components in milk. Then, more of the favorable components are added, while the less favorable ones are taken out. Fairlife says its milk has 50 percent more protein, 30 percent more calcium and 50 percent less sugar than regular milk, and is lactose free. The same process is used make Fairlife's Core Power, a drink marketed to athletes that has even more protein and calcium than Fairlife milk. Sue McCloskey, who developed the system used to make Fairlife with her husband Mike McCloskey, said Fairlife milk will be marketed more broadly to women who are the "gatekeepers" for their families' nutritional needs. Even while touting its nutritional advantages, however, Fairlife will need to be careful about communicating how its drink is made. Jonas Feliciano, senior beverage analyst for market researcher Euromonitor, noted people increasingly want drinks that "do something for me," but that Fairlife's juiced-up nutritional stats may make people hesitant about how natural it is. "They have to explain that this is not an abomination of nature," Feliciano said. Already, Fairlife has been subject to some teasing. After the drink was referenced in Coke's analyst presentation, comedian Stephen Colbert referred to it as "extra expensive science milk" and made fun of the elaborate way it's made. "It's like they got Frankenstein to lactate," he said. Colbert also took a dig at the wholesome image Fairlife is trying to project, noting that it's made by the "nature loving health nuts at Coca-Cola." That may explain why Coca-Cola is distancing itself from the product; a representative for the Atlanta-based company referred questions to Fairlife's outside representative. In a phone interview, Fairlife CEO and former Coke executive Steve Jones said he thinks his company can help reverse the decades-long decline in milk consumption. Already, major retailers including Wal-Mart, Target, Kroger and Safeway have agreed to carry it. The drink has already started appearing on shelves and is expected to continue rolling out nationally over the next several weeks. It comes in sleek, plastic bottles reminiscent of milk cartons. At a supermarket in Indianapolis, a 52-ounce bottle of Fairlife was being sold for $4.59. By comparison, the national average cost for a half-gallon of milk, which is 64 ounces, is $2.18, according to the USDA. For organic milk, the average is $3.99. wrote:

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Staff Team

I don't know about other people but I think i'm going to stick to my normal milk.

Administrator

I've not seen this in the grocery store but I'm going to look next time. Honestly if they want people to use this product they need to cut the price down by half. Who has the money to pay that amount of money for that little amount of milk? Until they find a cheaper way of making this product or cut the price down they need to look at young adults as their selling point. Targeting mom's in their campaign will hurt them because the average family is not going to pay that price when there is barely enough for a family of four to each get a serving for one meal. Most people struggle to make ends meet and buying that is just too expensive when a mother can buy a full gallon of regular milk at a cheaper price and then just give her children a vitamin to make up for the nutrients that they aren't getting.

Blogger

I totally agree with you Tori!

Guest

Corey was telling me about this the other day. Personally milk made by coke (knowing what's in coke) is something I definitely plan on passing. We are all lactose intolerant but coke making milk just doesn't sit right with me.

VIP

Yeah, no. Cut down the price some and I will look at it. I will stick with the milk we have for now.

Administrator

They sell it at Sam's Club here but yah the price is a bit much

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Coca Cola to sell milk called FairLife

Coca Cola to sell milk called FairLife

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