Food & Drink

chocolate milk cheaper than regular milk.

  • Last Updated:
  • Mar 23rd, 2018 11:05 pm
[OP]
Penalty Box
Dec 27, 2013
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Toronto

chocolate milk cheaper than regular milk.

So, I do most of my shopping at Costco and I've noticed a trend. 2L chocolate milk is almost always less than $2 for 2L. I've actually see it go as cheap as $1.65 one time..
Meanwhile, 4L of Sealtest milk is around $4.29- in the plastic bags....
But 2L of milk in the cardboard carton from Sealtest is like $3.

How does this make sense. I'm trying to figure out the logic behind how chocolate milk, is CHEAPER than regular milk..... And it's much much cheaper than regular milk when you buy it in the same form factor.

how does this make sense????

I have a feeling it has something to do with the milk quotas.. E.g. dairy farmers can only produce XXX amount of milk, depending on how many gallons/licence they buy per year.... BUT chocolate milk because it's been processed doesn't fall under the same production/sales category, therefore they can make it down to sell as much as possible??

like i don't really understand the economics of it.....
30 replies
Deal Fanatic
Sep 16, 2004
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chocolate milk is usually 1% and has lots of other things added like sugar, coloring, carrageenan etc whereas milk may just be milk.
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Aug 15, 2015
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Milk goes rotten when no one buys.

Some money is better than nothing.
[OP]
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Dec 27, 2013
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Toronto
gh05t wrote:
Mar 19th, 2018 11:01 am
chocolate milk is usually 1% and has lots of other things added like sugar, coloring, carrageenan etc whereas milk may just be milk.
That doesn't make sense. Chocolate milk is milk with basically cocoa and sugar.
It's gone through one extra step in the process...aka a value add process. So if it's a value add process then logic would dictate the price should be higher.

So it's either a loss leader..? Which I don't think it is.
Or
It has something to do with milk production quotas and the dairy farmer Union of Canada figuring out ways to off load more milk products and keep their volumes high..? Or maybe they bought more milk quota than needed and then put it into refined chocolate milk so they maintain their produxtion quota.
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Sep 16, 2004
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daivey wrote:
Mar 20th, 2018 2:55 pm
That doesn't make sense. Chocolate milk is milk with basically cocoa and sugar.
It's gone through one extra step in the process...aka a value add process. So if it's a value add process then logic would dictate the price should be higher.

So it's either a loss leader..? Which I don't think it is.
Or
It has something to do with milk production quotas and the dairy farmer Union of Canada figuring out ways to off load more milk products and keep their volumes high..? Or maybe they bought more milk quota than needed and then put it into refined chocolate milk so they maintain their produxtion quota.
when you take something and add fillers to it, you actually use less of the main product to begin with.
Factor in that chocolate milk is an altered product, and now less versatile than plain white milk, that could be put to other uses like cooking, yogurt making etc, unlike chocolate milk.
Chocolate milk is a niche market as well and as others have said, it's perishable and not bought as widely as plain ordinary white milk.
Therefore it's not as likely to sell in the same volumes as similar white milk, and because of it's perishablity, holding it on shelves is bigger risk than holding white milk.
Deal Addict
Sep 2, 2010
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It's a simple case of higher fertility. The brown cows which produce chocolate milk have been growing in number.
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Dec 3, 2009
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If milk prices were based off of cost + margins, skim milk should cost 50 cents for 4L. Easy to figure out why it isn't sold for that price and in line with 2%. There are a few skus of milk that don't sell but are needed anyways to fill up shelf space they are already paying for. Some of them are the larger quantities of chocolate milk.

Dairy companies are notorious for pushing their underperforming skus (even for a reduced cost) no matter what until they decide to innovate the next year.
Remember to be an RFD-er and NOT a degenerate.
Deal Addict
Jun 21, 2016
3058 posts
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Supply and demand
I’m sure people buy more milk than chocolate milk.
My family probably bought tens of thousands litres of milk over my life time.
Probably have bought 40L of chocolate milk from
The grocery store. In that same time frame
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eager beaver wrote:
Mar 20th, 2018 7:33 pm
It's a simple case of higher fertility. The brown cows which produce chocolate milk have been growing in number.
I heard pink (strawberry) cows may overtake brown in 10 years.
Remember to be an RFD-er and NOT a degenerate.
[OP]
Penalty Box
Dec 27, 2013
8003 posts
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Toronto
well, now that I think about, families aren't drinking as much milk as they use too. I was 6ft in grade 12 and 200 lbs..

todays grade 12s are 5ft and 100 lbs.

new generation of vegan hippies.
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No Frills wrote:
Mar 20th, 2018 7:42 pm
I heard pink (strawberry) cows may overtake brown in 10 years.
what does that do the taste of prime rib? I'm not sure I want strawberry taste in my prime rib.
Deal Guru
Feb 9, 2012
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toronto19850 wrote:
Mar 20th, 2018 7:41 pm
Supply and demand
I’m sure people buy more milk than chocolate milk.
Exactly. Plus also, I've never tried eating Kraft dinner made with chocolate milk, and I'm not about to.
The actual usage of regular milk vs chocolate milk is a good strong point.
Deal Fanatic
Feb 11, 2007
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According to google answers: Chocolate milk only makes up 7% of all milk consumption in Canada
https://www.dairygoodness.ca/milk/all-a ... olate-milk

Way more people use regular milk to complement cereal, baked goods, etc, than chocolate milk.
Infants, and some pets like cats, are fed regular milk.

Depending on the company, chocolate milk also has significantly more sugar and less calcium content than regular 2% milk in some cases.
daivey wrote:
Mar 18th, 2018 5:55 pm
So, I do most of my shopping at Costco and I've noticed a trend. 2L chocolate milk is almost always less than $2 for 2L. I've actually see it go as cheap as $1.65 one time..
Meanwhile, 4L of Sealtest milk is around $4.29- in the plastic bags....
But 2L of milk in the cardboard carton from Sealtest is like $3.

How does this make sense. I'm trying to figure out the logic behind how chocolate milk, is CHEAPER than regular milk..... And it's much much cheaper than regular milk when you buy it in the same form factor.

how does this make sense????

I have a feeling it has something to do with the milk quotas.. E.g. dairy farmers can only produce XXX amount of milk, depending on how many gallons/licence they buy per year.... BUT chocolate milk because it's been processed doesn't fall under the same production/sales category, therefore they can make it down to sell as much as possible??

like i don't really understand the economics of it.....
Deal Addict
Aug 5, 2006
4117 posts
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Global Village
daivey wrote:
Mar 20th, 2018 2:55 pm
That doesn't make sense. Chocolate milk is milk with basically cocoa and sugar.
It's gone through one extra step in the process...aka a value add process. So if it's a value add process then logic would dictate the price should be higher.

So it's either a loss leader..? Which I don't think it is.
Or
It has something to do with milk production quotas and the dairy farmer Union of Canada figuring out ways to off load more milk products and keep their volumes high..? Or maybe they bought more milk quota than needed and then put it into refined chocolate milk so they maintain their produxtion quota.
There is a 3rd explanation: the milk industry is trying to capture as big a share as possible of the sugary drinks market dominated by colas etc. and need to be priced accordingly with that market in mind more so than with the standard milk market retail pricing.

https://www.statista.com/statistics/742 ... a-by-type/
All day I dream about sports
[OP]
Penalty Box
Dec 27, 2013
8003 posts
3950 upvotes
Toronto
scoper wrote:
Mar 21st, 2018 1:39 am
There is a 3rd explanation: the milk industry is trying to capture as big a share as possible of the sugary drinks market dominated by colas etc. and need to be priced accordingly with that market in mind more so than with the standard milk market retail pricing.

https://www.statista.com/statistics/742 ... a-by-type/
Thank you, I didn't think about that at all. Very good idea. That website not loading to well for me? fee based?

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