Written by Agriland Team
The Coca-Cola Company has acquired the remaining stake in fairlife LLC from its joint venture partner Select Milk Producers.
Coca-Cola now owns 100% of “fairlife”, up from its previous 42.5% minority stake. Financial terms of the transaction were not disclosed in the deal, which was struck last week on Friday, January 3.
fairlife LLC, which launched in 2012, started with a high-protein milk shake called Core Power and has grown to offer a broad portfolio of products in the fast-growing value-added dairy category in North America.
fairlife will continue to operate as a stand-alone business based in Chicago, in the US, the American softdrink giant confirmed.
fairlife CEO Tim Doelman commented on the move, stating: “We are excited for the next chapter of fairlife’s growth and innovation and look forward to continuing to work with our partners across the Coca-Cola system to meet fast-changing consumer needs in a vibrant category.
“We set out in 2012 to harness the power and nutrition of dairy and give people great-tasting products that provide the nutrition they are looking for. Our innovative product lines will continue to grow and improve with the strength and scale of The Coca-Cola Company.”
‘Growing category’
Value-added dairy products have been “growing steadily in the United States, in contrast to the traditional fluid milk category, with great-tasting, nutrient-dense fairlife milk products playing a significant role in that growth”, according to Coca-Cola.
fairlife ultra-filtered milk debuted in 2014, and sales have “grown sharply” since then, with “strong double-digit growth each year since launch”, Coca-Cola claims.
According to Nielsen AMC, fairlife surpassed $500 million in retail sales last year, in 2019.
fairlife’s continued growth has been supported by new product innovation, the drinks giant states, including: lactose-free, ultra-filtered milk “with less sugar and more protein than competing brands”; and high-protein recovery and nutrition shakes and drinkable snacks.
Jim Dinkins, president of Coca-Cola North America, said:
“This agreement will help ensure that we continue to build on fairlife’s innovative history by combining their entrepreneurial spirit and innovation capabilities with the resources, reach and expertise of Coca-Cola.”
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