Date
16 December 2017
Coca-Cola hopes its new milk will 'rain money'. Photo: Internet
Coca-Cola hopes its new milk will 'rain money'. Photo: Internet

Why Coke is betting on milk

Bread and milk: staple foods it’s hard to imagine could ever be too different from one’s childhood days. 

But hold on. Some might consider the enormous range of products on bakery shelves today to be the best thing since, well, sliced bread.

Still, milk is just milk, right?

The Coca-Cola Company is gambling that it ain’t so.

The soda pop giant aims to revolutionize the dairy industry by introducing a new kind of milk that it hopes will “rain money”.

The product, called Fairlife, will sell for twice the price of ordinary milk when it hits shelves in the United States next month, Coca-Cola’s North American chief, Sandy Douglas, said at Morgan Stanley’s Global Consumer Conference last week.

“It’s basically the premiumization of milk,” Douglas said.

The new milk doesn’t contain lactose, and it has 50 percent more protein and calcium than regular milk, as well as 30 percent less sugar, Business Insider reported.

“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,” Douglas said.

“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. But like Simply [orange juice], when you do it well, it rains money later.”

Sales of liquid milk in the US have been declining for the past four decades.

Will Coke’s new milk reverse the trend, or will it fall flat like New Coke did?

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RA/FL

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