Coca-Cola\u00a0does not only sell\u00a0soft drinks; the beverage giant\u00a0has its presence in water, energy drink, and juice markets as well. Now Coca-Cola is about to take another leap–it has announced that it will be expanding its beverage portfolio through the nationwide launching of high-end milk called\u00a0Fairlife<\/em> in 2015.<\/p>\n

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According to Coca-Cola, Fairlife<\/i> milk will contain 50% more protein and calcium, and 30% less sugar than other milk, and contain no lactose. Coca-Cola also insists that it\u00a0tastes better than regular milk.<\/p>\n

What is interesting is that Coca-Cola is jumping into the milk business right at a time when milk sales in the U.S. are falling. Milk sales have declined by about 8% during the last decade. The premium milk which would be sold at twice the price of regular milk seems like a somewhat risky bet Coca-Cola is making.<\/p>\n

Nonetheless, Coca-Cola seems quite confident about its new venture. At a recent conference announcing\u00a0Fairlife’s\u00a0<\/em>launch, Sandy Douglas, the president of Coca-Cola said the company expects the premium milk to “rain money”.<\/p>\n

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It is hard to guess whether Fairlife<\/em> will be a success or not.\u00a0Milk market in the United States remains fragmented with only a few number of famous brands. One-third of U.S. milk sales come from store-brand milk. Coca-Cola’s breakthrough can either change the whole dynamic of the milk industry, maybe even boosting overall milk sales or become a complete disaster.<\/p>\n

Coca-Coal’s main\u00a0advantage in the new move is that it has a high brand recognition and that it has plenty of resources to support its marketing muscle. However, consumers are highly sensitive to price when it comes to milk. According to research by Nielson, people are more likely to consumers are much more likely to go for cheaper option since the perceived difference in milk is very low.Therefore, it is very hard to predict whether\u00a0Coca-Cola’s use of differentiation strategy using higher price and marketing it as ‘healthier’ milk would be a success or not.<\/p>\n

Coca-Cola has recently been investing more in non-carbonated drinks such as juices and teas, given an overall decline in soda sales across North America and rest of the world due to increasing concerns over obesity and artificial sweeteners as more people are becoming health-conscious. It October this year, it was announced that Coca-Cola has scored the lowest number in market shares in six years.<\/p>\n

Fairlife\u00a0<\/i>products have already\u00a0pre-launched\u00a0in some\u00a0states like Colorado and Minnesota. According to\u00a0Steven Thueringer, dairy manager Coborn’s grocery store in Belle Plaine, Minnesota, the\u00a0new milk products are “going pretty awesome”, especially being popular among younger population between their 20s to 40s.<\/p>\n

Fairlife<\/em>\u00a0is scheduled to launch nationwide early next year. Will it become Coca-Cola’s next cash cow to compensate for declining soda sales?<\/p>\n","protected":false},"excerpt":{"rendered":"

Coca-Cola\u00a0does not only sell\u00a0soft drinks; the beverage giant\u00a0has its presence in water, energy drink, and juice markets as well. Now Coca-Cola is about to take another leap–it has announced that it will be expanding its beverage portfolio through the nationwide launching of high-end milk called\u00a0Fairlife in 2015. According to Coca-Cola, Fairlife milk will contain 50% […]<\/p>\n","protected":false},"author":626,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/posts\/1028"}],"collection":[{"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/users\/626"}],"replies":[{"embeddable":true,"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/comments?post=1028"}],"version-history":[{"count":0,"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/posts\/1028\/revisions"}],"wp:attachment":[{"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/media?parent=1028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/categories?post=1028"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/j469.ascjclass.org\/wp-json\/wp\/v2\/tags?post=1028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}