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31 July 2008

Coke hopes things go better with – milk

Having tried their hand at brewing, Coca-Cola Amatil’s next project is to get involved in the dairy industry. The soft drink company will release a range of Goulburn Valley flavoured milks in Adelaide in September and then nationally, after trial marketing in Western Australia.

Soft drink maker Coca-Cola Amatil, that has frightened Australian brewers by setting up a local joint venture with SABMiller, is now taking on South Australian favourite Farmers Union Iced Coffee in September with the launch of its own coffee-flavoured milk.

Farmer’s Union Iced Coffee outsells Coke in South Australia by almost three to one – the only place in the world where a milk drink is more popular than a cola, it was reported.

CCAmatil chief executive Terry Davis said that the test-marketing of Goulburn Valley flavoured milks in WA had gone very well in the past ten months.

South Australia’s launch date for the milks, which include banana, strawberry, chocolate, iced coffee and mocha flavours, has been set for 18 September this year, with a national roll-out to follow later. The company has not revealed how much market share it plans to take in South Australia.

Farmer’s Union owner National Foods spokesman Julian Caples was quoted as saying that iced coffee was a clear market leader in South Australia.

"South Australians drink 45 million litres of flavoured milk every year and we have 82 percent of the market," he said. "We wish Coca Cola well."

His company has dominated Australian flavoured milk sales, worth AUD 305 million last year, with a 44 percent share of supermarket sales.

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