High-protein milk from Coca-Cola is trying to conquer the shelves of China with varying success
Source: The DairyNews
As reported by the Beijing Business Daily, Coca-Cola in China has launched the brand of reconstituted milk called Rubeile.
A year ago, Fairlife ultra-filtered milk, launched by Coca-Cola in partnership with Mengniu in 2020, entered a phase of production and sales suspension. According to official statements, any updates on its resumption will be announced separately. Instead, Coca-Cola has launched a new product under the brand name Rubeile and continued the development of the "high-nutrient milk" direction.
According to industry insiders, Coca-Cola's transformation into a company producing full-category beverages and focusing on the high-quality milk beverage market accelerates its strategic transformation into a full-category beverage production company. However, milk beverages differ from beverages in general. There are barriers in milk sources, policies, technologies, and other aspects to quickly verify if the market can afford it.
According to the Beijing Business Daily, Coca-Cola's new product has a volume of 256ml and is sold for 8 yuan per bottle. It is available in banana and chocolate flavors. It is prominently labeled on the packaging as "High-nutrient Milk" with over 12g of protein per bottle.
In 2021, the joint venture between Coca-Cola and Mengniu rebranded the high-protein ultra-filtered milk Fairlife and relaunched it under its original name, Xianfeile. With the discontinuation of this brand, some consumers expressed their regret. The new replacement brand is Rubeile.
Wan Peng, a junior researcher at the Beijing Academy of Social Sciences, said: "If Rubeile is similar or identical to Xianfeile in terms of product positioning, target market, consumer groups, and provides similar nutritional value, taste, or other characteristics as Xianfeile, then it is likely to be considered a substitute for Xianfeile. In addition, Coca-Cola's marketing strategy also provides some clues. If the company emphasizes its characteristics as an alternative to Xianfeile, this is further evidence of the staged development of the segment."
However, according to the analysis of Zhang Junhao, an expert in strategic positioning and founder of Fujian Huace Brand Positioning Consulting, although the company continues to focus on "high-nutrient milk", Rubeile cannot be a replacement for Xianfeile.
"The positioning of Rubei is simple — it is just a new product launched by Coca-Cola to fill the gap in the high-quality dairy product market," Mr. Junhao said.
As early as 2016, Coca-Cola decided to become a "company producing beverages of all categories." In 2017, James Quincey, Chairman and CEO of Coca-Cola, officially announced the implementation of Coca-Cola's "beverages of all categories" strategy.
With the implementation of this strategy, Coca-Cola has increased its focus on coffee, dairy, and alcoholic beverages. In 2017, Coca-Cola announced its entry into the Japanese market with Chu-Hi sparkling wines. In August 2018, Coca-Cola acquired Costa Co., Ltd. for $5.1 billion, gaining the COSTA Coffee business platform in Europe, the Asia-Pacific region, the Middle East, and Africa. In January 2020, Coca-Cola announced the acquisition of the remaining 57.5% of the shares of the American dairy brand Fairlife from its joint venture partner, Select Milk Producers.
In recent years, Coca-Cola's product matrix has also been constantly expanding. In 2022 alone, Coca-Cola China launched more than 20 products covering several categories such as flavored carbonated beverages, juices, coffee, and tea.
Zhang Junhao says, "This shows that Coca-Cola has great interest in the high-quality dairy beverage market. However, whether it can create a billion-dollar brand depends on its market strategy, brand positioning, product innovation, and other factors."
Fairlife has achieved good results in the US, providing Coca-Cola with valuable experience and resources. However, there are differences in consumer needs and cultural traditions in different markets, so Coca-Cola needs to fully consider these factors and formulate strategies and plans suitable for the local market.
Bai Wensi, Vice Chairman of China Enterprise Capital Alliance, believes that with the improvement of people's living standards, consumer demand for dairy products is also constantly growing, so the dairy beverage market still has many opportunities for development. The premium dairy beverage market has high growth potential, and Coca-Cola has advantages in terms of brand influence, sales channels, etc. However, challenges such as active competition, maintaining stable quality and taste of products, and the need to use active promotion and sales channels cannot be ignored.
According to industry insiders, Coca-Cola's transformation into a company producing full-category beverages and focusing on the high-quality milk beverage market accelerates its strategic transformation into a full-category beverage production company. However, milk beverages differ from beverages in general. There are barriers in milk sources, policies, technologies, and other aspects to quickly verify if the market can afford it.
According to the Beijing Business Daily, Coca-Cola's new product has a volume of 256ml and is sold for 8 yuan per bottle. It is available in banana and chocolate flavors. It is prominently labeled on the packaging as "High-nutrient Milk" with over 12g of protein per bottle.
In 2021, the joint venture between Coca-Cola and Mengniu rebranded the high-protein ultra-filtered milk Fairlife and relaunched it under its original name, Xianfeile. With the discontinuation of this brand, some consumers expressed their regret. The new replacement brand is Rubeile.
Wan Peng, a junior researcher at the Beijing Academy of Social Sciences, said: "If Rubeile is similar or identical to Xianfeile in terms of product positioning, target market, consumer groups, and provides similar nutritional value, taste, or other characteristics as Xianfeile, then it is likely to be considered a substitute for Xianfeile. In addition, Coca-Cola's marketing strategy also provides some clues. If the company emphasizes its characteristics as an alternative to Xianfeile, this is further evidence of the staged development of the segment."
However, according to the analysis of Zhang Junhao, an expert in strategic positioning and founder of Fujian Huace Brand Positioning Consulting, although the company continues to focus on "high-nutrient milk", Rubeile cannot be a replacement for Xianfeile.
"The positioning of Rubei is simple — it is just a new product launched by Coca-Cola to fill the gap in the high-quality dairy product market," Mr. Junhao said.
As early as 2016, Coca-Cola decided to become a "company producing beverages of all categories." In 2017, James Quincey, Chairman and CEO of Coca-Cola, officially announced the implementation of Coca-Cola's "beverages of all categories" strategy.
With the implementation of this strategy, Coca-Cola has increased its focus on coffee, dairy, and alcoholic beverages. In 2017, Coca-Cola announced its entry into the Japanese market with Chu-Hi sparkling wines. In August 2018, Coca-Cola acquired Costa Co., Ltd. for $5.1 billion, gaining the COSTA Coffee business platform in Europe, the Asia-Pacific region, the Middle East, and Africa. In January 2020, Coca-Cola announced the acquisition of the remaining 57.5% of the shares of the American dairy brand Fairlife from its joint venture partner, Select Milk Producers.
In recent years, Coca-Cola's product matrix has also been constantly expanding. In 2022 alone, Coca-Cola China launched more than 20 products covering several categories such as flavored carbonated beverages, juices, coffee, and tea.
Zhang Junhao says, "This shows that Coca-Cola has great interest in the high-quality dairy beverage market. However, whether it can create a billion-dollar brand depends on its market strategy, brand positioning, product innovation, and other factors."
Fairlife has achieved good results in the US, providing Coca-Cola with valuable experience and resources. However, there are differences in consumer needs and cultural traditions in different markets, so Coca-Cola needs to fully consider these factors and formulate strategies and plans suitable for the local market.
Bai Wensi, Vice Chairman of China Enterprise Capital Alliance, believes that with the improvement of people's living standards, consumer demand for dairy products is also constantly growing, so the dairy beverage market still has many opportunities for development. The premium dairy beverage market has high growth potential, and Coca-Cola has advantages in terms of brand influence, sales channels, etc. However, challenges such as active competition, maintaining stable quality and taste of products, and the need to use active promotion and sales channels cannot be ignored.
