Coca-Cola Co. has said the dairy category can “rain money” as the company revealed its upcoming Fairlife Ultra-Filtered Milk will sell for twice the price of regular milk.
The soft drinks giant, which plans to launch Fairlife nationwide in the US next month, said a proprietary filtering process will “premiumise” the milk by removing all lactose from the product and cutting sugar by 30%. The Fairlife website promotes the lactose-free milk as containing 50% more protein and calcium and half the sugars of regular milk.
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Sandy Douglas, the head of Coca-Cola’s business in North America, said the goal is to “create the Simply of milk”, referring to the Coca-Cola subsidiary the Simply Orange Juice Co.
Speaking at the Morgan Stanley Global Consumer Conference in New York last week, Douglas said Fairlife will be “a milk that’s premiumised and tastes better and we’ll charge twice as much for it as the milk we’re used to buying in a jug”, Douglas said.
Douglas said Coca-Cola intends to invest in dairy for the long term. He said the category can “rain money” for the company if handled correctly, although not in the short-term. “Like Simply, when you do it well it rains money later,” Douglas said.
Coca-Cola produces its dairy products in partnership with dairy firm Select Milk Producers. The two companies teamed up in 2012 to form Fair Oaks Farms Brands, which controls the Core Power protein milk shake brand.
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