For over a decade, Coca-Cola has been expanding beyond its flagship soda business, driven by shifting consumer preferences and growing concerns over sugary drinks. One of its biggest success stories in this diversification effort has been Fairlife, a premium dairy brand that has quietly become a billion-dollar powerhouse.
Launched in 2012 as a joint venture with Select Milk Producers, Fairlife introduced a game-changing ultra-filtered milk that removes lactose and sugar while doubling the protein content. The product quickly found a loyal customer base, even as food prices soared and consumer spending tightened. Recognizing its potential, Coca-Cola fully acquired Fairlife in 2020 for $980 million, and by 2022, the brand had crossed $1 billion in sales.
Fairlife’s biggest hit has been Core Power, a protein shake that dominates store shelves with minimal direct competition. The protein shake market in the U.S. is worth $6 billion, and Fairlife’s growing foothold in this space has even outperformed Coca-Cola’s other high-profile acquisition, Costa Coffee, which it purchased in 2018.
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Despite this success, soda remains Coca-Cola’s biggest revenue driver, while rival PepsiCo leans heavily on its Frito-Lay snack division for growth. However, Fairlife’s cultural relevance has given it an edge—TikTok users frequently showcase their pre-workout Core Power routines or use Fairlife milk to create healthier iced coffee alternatives.
But Fairlife hasn’t been without controversy. In 2022, the brand and Coca-Cola settled a $21 million class-action lawsuit following allegations of inhumane treatment of cows at a supplier’s farm. The lawsuit claimed that consumers were misled into paying a premium for Fairlife’s promise of ethically treated animals.
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Even with this setback, Fairlife has solidified its place as one of Coca-Cola’s most successful non-soda ventures—an investment that not only reshaped the dairy industry but also proved that a soda giant can dominate in protein, too.
