The Coca-Cola Co. and Select Milk Producers, Inc. (Select) are announcing the acquisition of equity stakes in the newly-created Fair Oaks Farms Brands, LLC to drive growth and expansion of Core Power®, a high protein milkshake, and to create an innovative portfolio of brands and products that feature the value-added nutrition of dairy.
“At The Coca-Cola Co. 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 another great example of our ambition to be the best brand, sales and customer service system in North America,” said Steve Cahillane, president and CEO, Coca-Cola Refreshments, in a prepared statement.
The investment validates the potential both parties see in offering higher quality value-added health and wellness beverages. “Our leadership in technology, innovation and sustainability within the dairy industry, combined with The Coca-Cola Company’s brand development and distribution capabilities will enable a new portfolio of nutritional beverages with strong growth potential,” said Mike McCloskey, co-founder and CEO of Select, an independent group of 87 American family farmers.
According to Steve Jones, CEO of the new Fair Oaks Farms Brands, LLC, “Our initial launch of Core Power® is off to a great start and this new partnership agreement with VEB will help us realize our vision of becoming a leading health and wellness company and the most trusted brand leader in dairy nutrition.”
Core Power® is currently distributed by Coca-Cola Refreshments and available in 26g and 20g protein versions and comes in 11.5 ounce recyclable plastic bottles. It is aseptically packaged so it can be distributed in a shelf stable environment until chilled before consumption.
u? in??? ? na, which the company previously announced on November 14, 2012. The company shared for the first time that it plans over time to offer handcrafted Teavana® tea beverages at Teavana mall and neighborhood stores and eventually at Starbucks stores. Once the acquisition is complete, Starbucks and Teavana will together jumpstart the next wave of growth in the tea category, leveraging Starbucks core competencies in handcrafted beverage, real estate and design and integrating these with Teavana’s world-class tea authority, merchandising and best-in-class retail store unit economics. Powered by Starbucks existing infrastructure, Starbucks plans to continue to grow and extend Teavana’s already-successful 300 mall-based stores as well as add a high-profile neighborhood store concept that will accelerate Teavana’s domestic and global footprint.
Digital and Loyalty Platforms Transforming Customer Connections Beyond Retail
Beyond retail store and CPG channel developments, Starbucks described how its digital and loyalty platforms and initiatives are transforming the way it connects with customers, strengthening brand relevance, delivering greater value and convenience to consumers - and producing greater profits for shareholders. Chief digital officer Adam Brotman described how the company’s social, web, mobile, loyalty and card assets differentiate Starbucks from any other retailer and combine to directly drive growth across the company’s business and around the world. Brotman announced that Starbucks cards are now used in approximately 25 percent of the company’s U.S. transactions and that the amount of dollars loaded on Starbucks cards increased by more than 20 percent last year. He also expects the company’s mobile payment platform to account for 10 percent of payments in Starbucks U.S. stores by the end of fiscal 2013.
