Coke’s Latest Bet? Milk

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Coca-Cola, a brand synonymous with soda, has been expanding beyond its traditional carbonated beverages. Under CEO James Quincey’s leadership since 2017, the company has been on the path to diversify its portfolio, and one of its biggest successes has been Fairlife—a high-protein, ultra-filtered milk brand.

Originally launched in 2012 as a joint venture with Select Milk Producers, Fairlife gained traction due to its unique filtration process, which removes lactose and sugar while doubling the protein content. Coca-Cola fully acquired the brand in 2020 for $980 million, and since then, Fairlife has far exceeded expectations. By 2022, its sales had surpassed $1 billion, making it one of Coca-Cola’s most successful acquisitions in the non-soda space.

Fairlife’s success is largely driven by its Core Power protein shakes, which have become a favorite among health-conscious consumers. With a growing emphasis on protein intake in the U.S., Fairlife has benefited from social media buzz and Coca-Cola’s vast distribution network. The protein shake market is valued at $6 billion, positioning Fairlife as a major player.

However, there are challenges. Coca-Cola has projected slower growth for Fairlife in 2025 while it builds a new production facility in New York. Additionally, past controversies, including a $21 million settlement over allegations of cow mistreatment, pose reputational risks.

Despite these hurdles, Fairlife remains a key part of Coca-Cola’s diversification strategy. With a total acquisition cost reaching $6.2 billion, it stands as one of Coke’s most expensive yet successful bets outside soda.