The Coca-Cola Co., Atlanta, acquired the remaining stake in Fairlife from its joint venture partner Select Milk Producers to now own 100% of the value-added dairy company, up from 42.5%. Financial terms of the transaction were not disclosed.
Fairlife launched in 2012 with a high-protein milkshake called Core Power and now offers a broad portfolio of products. It will continue to operate autonomously out of its offices in Chicago while being able to fully take advantage of Coke’s distribution system and resources as well as expertise in areas such as sustainability and supply chain management.
“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,” Fairlife CEO Tim Doelman said. “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 Co.”
While fluid milk has been taking a hit in the marketplace, value-added dairy products are seeing growth, and Fairlife surpassed $500 million in retail sales last year, according to Nielsen AMC.
In a Q&A on Coke’s website, North America President Jim Dinkins noted the two company’s have had a great relationship since Fairlife’s inception, and it “plays an important part in our strategy to continue growing as a total beverage company as we innovate to bring people more new products that meet their changing lifestyle and needs.”