Coke Moves Into Dairy Products

The soft drink company will distribute Core Power, a high-protein milkshake.

June 22, 2012

ATLANTA - Coca-Cola is adding dairy to its line of beverages with the distribution agreement with Core Power, a high-protein milkshake, the Wall Street Journal reports. Core Power is marketed as a workout recovery beverage for athletes and those who like to exercise.

Coke will begin delivering the milkshake next month to stores in a few states. The distribution pact comes after PepsiCo started a bigger campaign for its Gatorade sports drink line. PepsiCo will also debut a yogurt brand in this country sometime over the summer.

Coke will stock Core Power in 10,000 convenience, grocery and other stores by the fall, up from the drink€™s 600 locations right now, said Stephen Jones, CEO of Fair Oaks Farms Brands Inc., which owns Core Power. Core Power has a milk-and-honey shake, similar to CytoSport€™s Muscle Milk and Abbott Laboratories€™ EAS Myoplex. These high-protein shakes are made to restore muscles and strength after exercise.

"This new brand is part of an exciting category for consumers and retailers that is still in the early stage of its growth potential," said Deryck van Rensburg, president of Coke's North America Venturing and Emerging Brands unit.

Coke has been looking to expand its beverage line, especially in the sports-drink market because Powerade has not as many line extensions as competitor Gatorade. Coke has sold dairy products overseas but not in the United States. The company also is experimenting with lower-calorie versions, such as Sprite Select.

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