Coke Leans on Fancy Milk To Wean Itself Away From Soft Drinks

When James Quincey became CEO of Coca-Cola in 2017, soda consumption had been broadly declining due to health concerns.

In 2022, Coca-Cola announced that Fairlife’s sales had surpassed $1 billion. I Photo: The Coca-Cola Company

The beverage giant was embarking on an effort to diversify its portfolio beyond sugary drinks, Ramishah Maruf reported for CNN Business. A key move? Ditching carbonation and sticking to the basics: cow’s milk.

Launched in 2012, Fairlife—originally founded as a joint venture between Coca-Cola and wholesale dairy producer Select Milk Producers—used whimsical, minimalist packaging that aligned with the growing popularity 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 its social media popularity in the health and wellness space.

While Americans face rising food prices and are pulling back on spending, they are still drawn to Fairlife’s ultra-filtered system, which removes lactose and sugar while doubling the protein content.

In 2022, Coca-Cola announced that Fairlife’s sales had surpassed $1 billion. This success is largely driven by Fairlife’s Core Power protein shake brand, a grocery store staple with few direct market-leading competitors.