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Coke Bets on Super Milk; More Protein, Less Sugar

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In this Friday, Jan. 23, 2015 photo, Fairlife milk products appear on display in the dairy section of an Indianapolis grocery store. Fairlife, which is rolling out nationally in coming weeks, is the product of a joint venture between Select Milk Producers, a dairy cooperative, and Coca-Cola. The product is filtered to have more protein and less sugar than regular milk. (AP Photo/Michael Conroy)

In this Friday, Jan. 23, 2015 photo, Fairlife milk products appear on display in the dairy section of an Indianapolis grocery store. Fairlife, which is rolling out nationally in coming weeks, is the product of a joint venture between Select Milk Producers, a dairy cooperative, and Coca-Cola. The product is filtered to have more protein and less sugar than regular milk. (AP Photo/Michael Conroy)

CANDICE CHOI, AP Food Industry Writer

NEW YORK (AP) — Coke is coming out with premium milk that has more protein and less sugar than regular. And it’s betting people will pay twice as much for it.

The national rollout of Fairlife over the next several weeks marks Coca-Cola’s entry into the milk case in the U.S. and is one way the world’s biggest beverage maker is diversifying its offerings as Americans continue turning away from soft drinks.

It also comes as people increasingly seek out some type of functional boost from their foods and drinks, whether it’s more fiber, antioxidants or protein. That has left the door open for Coke step into the milk category, where the differences between options remain relatively minimal and consumption has been declining for decades.

“It’s basically the premiumization of milk,” Sandy Douglas, president of Coca-Cola North America, said at an analyst conference in November. If developed properly, Douglas said it is the type of product that “rains money.”

Fairlife, which Coca-Cola formed in partnership with dairy cooperative Select Milk Producers in 2012, says its milk goes through a filtration process that’s akin the way skim milk is made. Filters are used to separate the various components in milk. Then, more of the favorable components are added, while the less desirable ones are kept out.

The result is a drink that Fairlife says is lactose free and has 50 percent more protein, 30 percent more calcium and 50 percent less sugar than regular milk.

The same process is used make Fairlife’s Core Power, a drink marketed to athletes that has even more protein and calcium than Fairlife milk.

Sue McCloskey, who developed the system used to make Fairlife with her husband Mike McCloskey, said Fairlife will be marketed more broadly to women who are the “gatekeepers” for their families’ nutritional needs.

Even while touting its nutritional advantages, however, Fairlife will need to be careful about communicating how its drink is made. Jonas Feliciano, senior beverage analyst for market researcher Euromonitor, noted people want drinks that “do something for me,” but that Fairlife’s juiced-up nutritional stats may make people hesitant about how natural it is.

“They have to explain that this is not an abomination of nature,” Feliciano said.

Already, Fairlife has been subject to some teasing. After the drink was referenced in Coke’s analyst presentation, comedian Stephen Colbert referred to it as “extra expensive science milk” and made fun of the elaborate way it’s made.

“It’s like they got Frankenstein to lactate,” he said.

Colbert also took a dig at the wholesome image Fairlife is trying to project, noting that it’s made by the “nature loving health nuts at Coca-Cola.” That may explain why Coca-Cola is distancing itself from the product; a representative for the Atlanta-based company referred questions to Fairlife’s outside representative.

In a phone interview, Fairlife CEO and former Coke executive Steve Jones said he thinks his company can help reverse the ongoing decline in milk consumption by offering a superior product. Major retailers including Wal-Mart, Target, Kroger and Safeway have agreed to carry it and Coca-Cola’s Minute Maid team plans to make it available wherever milk is sold.

The drink, which comes in a sleek plastic bottle reminiscent of milk cartons, has already started appearing on shelves and is expected to continue rolling out nationally over the next several weeks.

At a supermarket in Indianapolis, a 52-ounce bottle of Fairlife was being sold for $4.59. By comparison, the national average cost for a half-gallon of milk, which is 64 ounces, is $2.18, according to the USDA. For organic milk, the average is $3.99.

Fairlife is just one of many ventures by Coca-Cola, which also recently took stakes in energy drink maker Monster Beverages and Keurig Green Mountain, which makes single-serving coffee machines and pods.

Over time, Coca-Cola is hoping premium milk can become a significant driver of growth. For now, Fairlife is still trying to find its footing in the marketplace.

This summer, the company ran ads in the test markets of Minneapolis and Denver featuring women wearing nothing but milk splashes in the shape of dresses. The images were accompanied by phrases like, “Better Milk Looks Good On You,” leading them to be deemed sexist in some corners.

Jones said the ads were intended to be “disruptive,” since new products need to grab people’s attention. But moving forward, Fairlife plans to focus on its authentic milk taste and the farmers who produce it in national marketing, which will roll out around the end of March or April.

While declining to provide details, Jones said Fairlife intends to “crank up the awareness level very, very quickly.”

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Follow Candice Choi at www.twitter.com/candicechoi

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Business

V.P. Kamala Harris: Americans With Criminal Records Will Soon Be Eligible for SBA Loans

Speaking in Las Vegas on Jan. 27, Vice President Kamala Harris announced a forthcoming federal rule that will extend access to Small Business Administration (SBA) loans to Americans who have been convicted of felonies but have served their time. Small business owners typically apply for the SBA loans to start or sustain their businesses.

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On her daylong trip, Harris was joined by Horford, SBA Administrator Isabella Guzman, Interim Under Secretary of Commerce for Minority Business Development Agency (MBDA) Eric Morrissette, and Sen. Catherine Cortez Masto (D-Nev).
On her daylong trip, Harris was joined by Horford, SBA Administrator Isabella Guzman, Interim Under Secretary of Commerce for Minority Business Development Agency (MBDA) Eric Morrissette, and Sen. Catherine Cortez Masto (D-Nev).

By California Black Media

Speaking in Las Vegas on Jan. 27, Vice President Kamala Harris announced a forthcoming federal rule that will extend access to Small Business Administration (SBA) loans to Americans who have been convicted of felonies but have served their time.

Small business owners typically apply for the SBA loans to start or sustain their businesses.

Harris thanked U.S. Rep. Steven Horsford (D-NV-04), the chair of the Congressional Black Caucus, for the work he has done in Washington to support small businesses and to invest in people.

“He and I spent some time this afternoon with business leaders and small business leaders here in Nevada. The work you have been doing to invest in community and to invest in the ambition and natural capacity of communities has been exceptional,” Harris said, speaking to a crowd of a few hundred people at the Brotherhood of Electrical Workers Hall in East Las Vegas.

On her daylong trip, Harris was joined by Horford, SBA Administrator Isabella Guzman, Interim Under Secretary of Commerce for Minority Business Development Agency (MBDA) Eric Morrissette, and Sen. Catherine Cortez Masto (D-Nev).

“Formerly incarcerated individuals face significant barriers to economic opportunity once they leave prison and return to the community, with an unemployment rate among the population of more than 27%,” the White House press release continued. “Today’s announcement builds on the Vice President’s work to increase access to capital. Research finds that entrepreneurship can reduce recidivism for unemployed formerly incarcerated individuals by as much as 30%.”

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G.O.P. Lawmakers: Repeal AB 5 and Resist Nationalization of “Disastrous” Contractor Law

Republican lawmakers gathered outside of the Employee Development Department in Sacramento on Jan. 23 to call for the repeal of AB5, the five-year old California law that reclassified gig workers and other independent contractors as W-2 employees under the state’s labor code.

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File Photo: Assembly Republican Leader James Gallagher (R-Yuba City)
File Photo: Assembly Republican Leader James Gallagher (R-Yuba City)

By California Black Media

Republican lawmakers gathered outside of the Employee Development Department in Sacramento on Jan. 23 to call for the repeal of AB5, the five-year old California law that reclassified gig workers and other independent contractors as W-2 employees under the state’s labor code.
Organizers said they also held the rally to push back against current efforts in Washington to pass a similar federal law.

“We are here to talk about this very important issue – a battle we have fought for many years – to stop this disastrous AB 5 policy,” said Assembly Republican Leader James Gallagher (R-Yuba City).
Now, that threat has gone national as we have seen this new rule being pushed out of the Biden administration,” Gallagher continued.

On Jan. 10, the U.S. Department of Labor issued a new rule providing guidance on “on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA).”
“This final rule rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule), that was published on January 7, 2021, and replaces it with an analysis for determining employee or independent contractor status that is more consistent with the FLSA as interpreted by longstanding judicial precedent,” a Department of Labor statement reads.
U.S. Congressmember Kevin Kiley (R-CA-3), who is a former California Assemblymember, spoke at the rally.

“We are here today to warn against the nationalization of one of the worst laws that has ever been passed in California, which has devastated the livelihoods of folks in over 600 professions,” said Kiley, adding that the law has led to a 10.5% decline in self-employment in California.

Kiley blamed U.S Acting Secretary of Labor, July Su, who was the former secretary of the California Labor and Workforce Development Agency, for leading the effort to redefine “contract workers” at the federal level.
Kiley said two separate lawsuits have been filed against Su’s Rule – its constitutionality and the way it was enacted, respectively. He said he is also working on legislation in Congress that puts restrictions on the creation and implementation of executive branch decisions like Su’s.
Assemblymember Kate Sanchez (R-Rancho Santa Margarita) announced that she plans to introduce legislation to repeal AB 5 during the current legislative session.

“So many working moms like myself, who are also raising kids, managing households, were devastated by the effects of AB 5 because they lost access to hundreds of flexible professions,” Sanchez continued. “I’ve been told by many of these women that they have lost their livelihoods as bookkeepers, artists, family caregivers, designers, and hairstylists because of this destructive law.”

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Oakland Post: Week of April 10 – 16, 2024

The printed Weekly Edition of the Oakland Post: Week of April 10 – 16, 2024

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