Milk to reduce cholesterol level BY JOHN ECKBERG | JECKBERG@ENQUIRER.COM Friday, June 29, 2007 Kroger Co. on Thursday unveiled cholesterol-reducing, fat-free milk that will be sold nationally under the retailer's Active Lifestyle in-house brand. It's the latest initiative from the company's highly profitable private label arm. The milk will sell in half-gallon containers at a price equal to other varieties of milk and is the latest example of a growing lineup of products that Kroger manufactures, markets and sells at prices that are cheaper than nationally branded items. Kroger, long considered a grocer by most consumers, is also a major food producer with more than 40 factories or plants that manufacture about 10,000 items for Kroger shelves. The new Active Lifestyle Fat Free Milk, which has plant sterols produced by Cargill, Inc., is the first of many more products to be rolled out in the months to come that target aging Baby Boomers with health benefits, Kroger officials said Thursday. Sterols are plant by-products that naturally reduce cholesterol, which cause heart attacks and other health issues. "Baby boomers want an active lifestyle," said Donald Becker, head of merchandising for Kroger and in charge of the company's private labels. "All levels of our private labels are growing well." The milk with sterols from soybeans and corn is expected to reduce cholesterol levels within two to three weeks after it becomes part of a consumer's diet, officials said. Food manufacturing is a core focus for the grocer because it enables the company to reduce costs and lower prices as products move from company dock to dock to store shelf. Matt Thornhill, author of "Boomer Consumer: Ten New Rules for Marketing to Americas Largest, Wealthiest and Most Influential Group" (Linx Corp.; 2007), said the new variety of milk is evidence that Kroger is responding to its customer base. "How do we add beneficial aspects to an existing food product? That's the question companies are asking," he said. "We can expect to see a lot of that." Kroger officials said private labels provide about 24 percent of the company's grocery revenues. Based on first quarter grocery revenues of $17.5 billion, Kroger receives $4.2 billion in revenues each quarter from its private brand universe of products. Copyright © 2007 Cincinnati Enquirer, Inc. All rights reserved. Back to Media Coverage