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Coca-Cola Increases Stake in Dairy Firm Fairlife
January 7, 2020
2 Min Read
Image courtesy of The Coca-Cola Company
American beverage firm The Coca-Cola Company is expanding its foothold in the dairy industry with the acquisition of all remaining shares of value-added dairy products producer Fairlife LLC from its joint venture partner Select Milk Producers. The company increased its stake in Fairlife from 42.5% of shares to 100% ownership, Coca-Cola announced in a January 3 release. Following the transaction, Fairlife will remain in operation as a stand-alone business.
“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,” the chief executive officer of Fairlife, Tim Doelman, said in a statement. “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.”
Coca-Cola currently distributes Fairlife products through its Minute Maid distribution system and Coca-Cola bottlers across the U.S. The company plans to open a new production facility in Ontario this spring and a new facility is being built in Goodyear, AZ.
“Fairlife is a great example of how we’re continually expanding our total beverage portfolio to bring people more of the brands they love,” Jim Dinkins, president of Coca-Cola North America, said in the release. “This agreement will help ensure their entrepreneurial spirit and innovation capabilities with the resources, reach, and expertise of Coca-Cola.”
Nielsen data shows the company generated more than $500 million in retail sales during 2019. The global market for dairy products is projected to reach $645.8 billion by 2025, according to a forecast by Meticulous Research, with Europe accounting for the biggest share of the market.
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