Milky Moooves: USA Coca-Cola dairy product expansion follows Pepsi lead
US-owned Coca-Cola Company has announced it is expanding into dairy products following the acquisition of a stake in Fair Oaks Farm Brands with Select Milk Producers Inc, a collective of American family farmers.
Known for its soft drinks, juices and water – Coca-Cola’s latest acquisition will be the first move into US dairy markets. Coca-Cola purchased the stakes in Fair Oaks Farm Brands last week after it signed a distribution deal with the company to distribute its Core Power milk-based sports drinks in June 2012.
The Core Power range is lactose and gluten free, and has been described as a “post-workout recovery drink,” that relies on milk casein protein instead of protein powders.
President and CEO of Coca-Cola US, Steve Cahillane, said that the investment in Core Power, its first dairy product, was a step towards becoming “the best brand, sales and customer service system in North America.”
“At the Coca-Cola Company we strive to provide people with a wide range of beverage choices that meet every occasion and lifestyle need. This new investment led by our Venturing & Emerging Brands group is a great example of our ambition,” Mr Cahillane said.
Rival company PepsiCo also invested in the US dairy market this year, partnering with German dairy company Theo Muller Group in July. The partnership formed Muller Quaker Dairy, a yogurt brand which was launched in America in August.