Coca-Cola leans on fancy milk to grow past soft drinks

When James Quincy became CEO of Coca-Cola in 2017, the beverage giant embarked on an effort to diversify its reach beyond soda, which has broadly been in decline over its sugary health effects.

When James Quincey became CEO of Coca-Cola in 2017, soda had broadly been in decline over its health effects. The beverage giant was embarking on an effort to diversify its reach beyond the sugary drink. A key move? Ditching the carbonation and sticking to the basics: cow milk. Launched in 2012, Fairlife — originally founded as a joint venture between Coca-Cola and wholesale dairy producer Select Milk Producers — used whimsical, minimalistic packaging that fits with the influx of niche almond, protein and even pistachio milks, outperforming large-container beverages in the dairy aisle. In 2020, Coca-Cola fully acquired Fairlife for an initial $980 million — an acquisition that has far exceeded the soda giant’s expectations due in part to social media popularity in the health and wellness space. While Americans face higher food prices and a pullback in their spending, they’re still drawn to Fairlife’s ultra-filtered system that draws out lactose and sugar but doubles the protein. In 2022, Coca-Cola announced that Fairlife’s sales surpassed $1 billion. The success is driven by Fairlife’s Core Power protein shake brand, which remains a popular staple at many grocery stores and does not have many direct market-leading competitors.