The Changing Role of Fat Perceptions in Fluid Milk Labeling: Would the Dairy Industry Sell More if 2% Milk Was Called “98% Fat Free”?

U.S. consumers’ perceptions of fat content in food may have changed substantially over the past few decades. This is particularly relevant for the dairy industry as fluid milk is marketed with many different fat content options. Using a stated preferences contingent valuation experiment, this article explores consequences of framing effects of fat on the fluid milk label. Specifically, we investigate whether using alternative but equivalent labels of 96.75% fat free, 98% fat free and 99.98% fat free, whole, 2% fat, and skim milk change consumer willingness to pay. Results indicate that such framing effects rarely have the intended effect and that consumers would actually pay less for 2% fat milk if it were called 98% fat-free milk.