Demographic and Economic Factors Affecting Demand for Brand-Level Milk in Texas

Data from Texas households for year 2008 were used in examining market competitiveness of Promised Land milk (PLM) using tobit procedure. Private label, Poinsettia, and Oak Farms were substitutes to white PLM. Estimated demand elasticities for white PLM and chocolate flavored PLM were -2.33 and -0.54 respectively. Statistically significant drivers of PLM were income, age of shopper, age of children present in the household and race.