17.07.2024
News
Coca-Cola to build $650 million Fairlife plant in New York State
While Coca-Cola is best known for brands such as Sprite, Fanta and its namesake soda, the Atlanta-based company is actively working to build a broader and, in many cases, healthier portfolio.
Under CEO James Quincy, Coca-Cola acquired or bought stakes in brands it did not already own, including Fairlife, Topo Chico soda, and the BodyArmor sports drink line. At that time, Coca-Cola sold or discontinued Zico coconut water, Tab soda, and Odwalla juice to focus on more profitable and fast-growing products.
In 2020, Coca-Cola acquired the remaining shares of Fairlife, an ultra-filtered milk and dairy products company, from its joint venture partner Select Milk Producers, a dairy cooperative. Coca-Cola previously held a minority stake of 42.5%. The financial terms of the deal were not disclosed. The process of ultrafiltration of milk removes lactose and most of the sugar and leaves more protein and calcium.
Launched in 2012, Fairlife began by producing high-protein milkshakes for athletes and has since expanded its range to include other value-added dairy products, including popular milk and ice cream.
The brand has grown by almost 30% since the beginning of the year and now a quarter of all US households buy Fairlife products, Coca-Cola said, citing Nielsen data.
The New York plant will be the third Fairlife plant in the United States. Coca-Cola already has plants in Coopersville, Michigan, and Goodyear, Arizona.
“Consumer demand for Fairlife products is at an all-time high, and this new facility will allow us to significantly increase our capacity and bring Fairlife products to even more households across the country,” said Tim Doelman, CEO of Fairlife, in a statement.
He added that as the brand continues its expansion in the Northeast, New York’s proximity and access to dairy farmers “make it a great place to support our next phase of growth.”
Coca-Cola is the latest major company in the consumer goods sector to build a new plant or expand an existing one to prepare for increased sales of its product. Mondelēz International, Nestlé, J.M. Smucker and Post Holdings are among those who have made multimillion-dollar announcements in recent years to build food and beverage plants.