December 1, 2014

Coca Cola, the global giant in soda, water, energy drinks, and juices, is preparing for a 2015 launch of its new high-end, branded milk line called Fairlife. Unlike other beverage sectors, the highly fragmented milk sector has very few recognizable brand names, with store brands accounting for one third of total milk sales according to Euromonitor International. Coca Cola, in partnership with the co-op Select Milk Producers, is gearing up for the 2015 launch of their new dairy line of ‘higher quality, value added health and wellness beverages’. Fairlife milk will contain more protein and calcium, and half the sugar than standard milk, and will be lactose free – but will cost approximately .65 cents more per quart than standard milk. Breaking into the branded dairy sector however will have its challenges. Per capita milk consumption in the U.S. has been falling and is expected to continue to fall by Euromonitor. Consumers are also particularly price sensitive regarding milk. Store brands have remained strong when compared to branded milk because the perceived differences between the two products is minimal. But even as milk consumption is declining, sales of higher-end, value added milk, such as White Wave’s Horizon Organic milk are climbing, and Euromonitor expects increasing numbers of value added dairy beverages to appear on the market.

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