Coca-Cola now a full-fledged player in the dairy market

Coca-Cola recently acquired full ownership of the Fairlife dairy brand. The soft drink giant already had a minority interest of 42,5% and has taken over the remainder from dairy cooperative Select Milk Producers.

The Fairlife brand was launched a few years ago introduced in the US for the production of protein-rich milkshakes. The range has since grown to include a wide range of value-added dairy products. Coca-Cola sees Fairlife as an interesting industry that contributes to the ambition to continue to grow and innovate.

Strong growth
Coca Cola wants to respond to the changing lifestyle of people and especially sees opportunities outside the iconic soft drinks. Value-added dairy is a growing market in the US. Fairlife, which produces products with less lactose and more protein, has grown by double digits in sales every year since its introduction in 2014. In the first quarter of 2019, a growth of 42% was even achieved. Fairlife's retail sales crossed the $500 million mark last year.

The US dairy industry is currently under pressure. Two major processors - Dean Foods and Borden Dairy - have recently bankruptcy requested. At the same time, opportunities arise for companies with innovative products. Fairlife is responding to this with products such as filtered milk, protein-rich shakes and drinkable snacks. In doing so, Fairlife benefits from the reach of Coca-Cola. The products are distributed through the Minute Maid distribution system and through Coca-Cola bottlers in the US. Since 2018, Fairlife is also available in Canada.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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