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Will Coca-Cola Benefit From Alliance With Filtered Milk Producer?

March 17, 2016: 12:00 AM EST
Coca-Cola has taken a minority stake in Chicago-based dairy cooperative Fairlife, betting on the future popularity of milk that is filtered, high-protein, low-sugar and lactose-free, a kind of “designer milk” that costs more than organic and is twice the price of conventional milk. With soda sales sagging, Coca-Cola has been experimenting with beverages that can be presented as healthier.  Another dairy producer is also offering milk that claims health benefits. The regional Dean Foods brand DairyPure sells milk that is hormone- and antibiotics-free. Fairlife should benefit considerably from its partnership with Coke, which has a huge distribution network and access to hundreds of thousands of U.S. supermarket shelves.
Shruti Singh et al., "Coke Thinks Designer Milk Could Be a Billion-Dollar Brand", Bloomberg Business, March 17, 2016, © Bloomberg L.P.
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