The finest in Chocolate Milk

At the market today I noticed a new product. Always on the lookout for anything new and for anything chocolate. This was both so it really stood out.

And it stood out for another reason -- $5.49 for a 32 oz bottle.

Liquid gold. But the packaging was classy, the bottle made of glass. Great design. And it had a whole paragraph of how this was good for you because chocolate was so good for you. And then another paragraph about the milk which was from organically grass fed cows. And the milk had not been homogenized and contained something that actually helped your cholesterol.

But did I buy it -- almost. It had too much sugar.

Maybe tomorrow. At that price it's got to be grand. Doesn't it.

Funny how a high price, great packaging and a good story all add up to our impression of a premium product. While that packaging has to cut into their margin, they would never get that price with cheaper packaging. Stories come free -- with good storytellers. Although, organic milk has always carried a slightly higher price.

This is a great paradigm for the small CPG marketer. Because of the small size, distribution takes a lot of the margin. If you can create enough margin, you'll build up the funds to build a brand as a premium product. With the growth of the brand, the leverage of distribution diminishes while your margins just grow.

Sweet.