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Coca-Cola 'Moo-ving' to Milk Products

Dec 09, 2014

By Dean George

Got milk? Until recently Coca-Cola® didn’t, but beginning in 2015 the world’s largest soft drink company is ‘moo-ving’ to a new beverage pasture.

Fairlife Milk

You remember milk? It’s white, makes a big splash with cereal and leaving some for Santa Christmas Eve is highly recommended.  It also is a key ingredient in milkshakes, goes especially well with Oreos® and is responsible for making more mustaches than Burt Reynolds, Tom Selleck and Groucho Marx.

Our regular readers know that Dental Insurance Store is a fan of milk because the protein and calcium found in it are good for teeth.

After years of milking the public’s never-ending quench for sweet tasting carbonated drinks that fizz and bubble, Coke thinks it has found “The Real Thing” partnering with a dairy co-op, Select Milk Producers (SMP), a group of 92 family-owned dairy farms located throughout the Midwest, Texas and New Mexico. Together Coke and SMP have created a premium milk named FairLife.

Until now Fairlife has only been sold in test markets, but Coca-Cola® announced last week it’s popping the cork and going national in 2015. But Fairlife won’t be your regular cow-type milk because SMP cows produce some of the highest quality milk in the world.

Fairlife contains 50% more protein and calcium, and half the sugar of regular milk. It’s also lactose free. “It’s basically the premiumisation of milk,” Coke spokesman Sandy Douglas said in a transcript from the event announcing the planned nationwide launch of Fairlife.

Coke sees it as an opportunity to create “higher quality value-added health and wellness beverages” in value-added dairy products, Douglas said. He says the company is modeling the new milk product after their upper tier juice brand, Simply.

Because the drink offers more protein than regular milk and protein consumption is trendy now, Coke believes health enthusiasts may be willing to pay more for a gallon of Fairlife than regular milk. How much more? In this year’s test markets it was selling for 65 cents more per quart than regular milk.

Let’ see – four quarts to a gallon, multiply 65 times four, subtract a Guernsey cow and carry the two – that’s $2.60 more than what everyone pays for a gallon of traditional milk. Earlier this year milk was selling for $3.74 a gallon at its high point, so roughly Fairlife would run between $5 and $6 a gallon based on today’s milk prices.

Coke is also betting the dairy farm, so to speak, that they may be able to wean Paleo dieters, Crossfit enthusiasts and others that avoid dairy products away from almond milk.

It’s a bold move by Coke considering milk consumption on the whole has been waning for decades, but as previously reported in Dental Wire, many consumers are opting for other drinks because of the high sugar levels in soft drinks.

While any kind of white milk is good for your teeth and oral health, so is visiting the dentist twice a year. We help thousands of people see their dentist for regular checkups by providing excellent dental plan options.

For plans available in your area, click here.

Sources: businessweek.com, huffingtonpost.com, blogsmarketwatch.com, coca-colacompany.com, fairlife.com
Photo source: fairlife.com


Copyright 2014, Bloom Insurance Agency, LLC   

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