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Coca-Cola's Massive Investment of USD 650 Mn to Expand Fairlife Milk Production in US

Fairlife’s new facility is expected to source milk from local milk co-operatives and distribute them to retailers across the region.

Shivam Dwivedi
Tim Doelman, Fairlife CEO (Photo Source: Chicago ST)
Tim Doelman, Fairlife CEO (Photo Source: Chicago ST)

Coca-Cola, the world’s largest beverage producer, has announced its plans to invest USD 650 million in setting up a new manufacturing facility in the Northeast of New York to expand production capacity for Fairlife milk brands.

Fairlife CEO, Tim Doelman, revealed that the consumer demand for Fairlife products is at an all-time high, and a new production facility will significantly increase the capacity to deliver Fairlife to even more households across the country. Groundbreaking and construction of the new facility are expected to begin in Q4 2023, following due diligence and appropriate approvals.

The Town of Webster was chosen as the site for the new facility because it is well situated between dairy cooperatives in the Rochester and Niagara regions, with a surrounding workforce that has the relevant manufacturing and food and beverage experience, making it the ideal location for Fairlife’s expansion.

Fairlife, which launched in 2012, started with a high-protein milkshake aimed at athletes and has since expanded into other value-added dairy products, including its popular milk and ice cream. Its ultra-filtered milk facility processes milk by removing lactose and much of the sugar, leaving behind more protein and calcium, as highlighted by Coca-Cola.

Coca-Cola CEO James Quincey said that the acquisition of the remaining stake from its joint venture partner Select Milk Producers, a dairy cooperative, in 2020, will help the company to grow in the Northeast. As the brand continues its expansion in the region, the New York location’s proximity, and access to dairy farmers make it an excellent location to support the company’s next phase of growth.

Coca-Cola's investment in the new manufacturing facility for Fairlife milk brands is in line with the company's strategy to build a new plant or expand an existing facility to prepare for an increase in sales of a product. With nearly 30% year-to-date growth and a quarter of all U.S. households purchasing a Fairlife product, Coca-Cola is taking this strategic step to meet the rising demand for Fairlife products.

The dairy industry is New York’s largest agricultural sector and plays a significant role in the state’s economy. The new facility will boost the dairy industry in the region, creating more job opportunities and driving economic growth.

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