Coca-Cola is investing $650 million in expanding Fairlife milk production in the US due to growing demand, according to TheStreet. The investment involves modernising the plant in Coopersville, Michigan, where ultra-filtered milk and protein drinks are produced.
The investment involves the installation of two new production lines and the expansion of the plant’s capacity by 245,000 square feet. Commercial production on the new lines is expected to commence in 2028.
Demand for dairy products exceeds supply
The expansion of production is driven by consistently high demand for Fairlife products, including lactose-free milk and protein shakes. For several years, production has been operating at near full capacity, which is holding back further growth.
Details of the production expansion
The project in Michigan involves the launch of two high-speed production lines at an existing plant, which has been in operation since 2012 and currently employs over 400 people. The expansion is expected to create around 150 new jobs.
Construction is set to begin later this year. The project has also received government support in the form of tax incentives worth $3.9 million, approved by the Michigan Strategic Fund Board.
Another investment project is being carried out separately: the construction of the $650 million Fairlife plant in Webster (New York), which is scheduled to open later this year. There is also a facility in Goodyear (Arizona). The total investment in the brand’s development exceeds $1.3 billion.
Fairlife as a driver of growth in the dairy sector
Fairlife has become one of Coca-Cola’s key growth areas. According to CEO James Quincey:
“In 2014, Fairlife’s retail value stood at $10 million. Last year, it was nearly $4 billion. And this is a business that continues to grow.”
According to Circana, in the 52 weeks to December 2025, Fairlife’s sales in the chilled milk category rose by 28% to $782 million. By comparison, the overall milk market grew by just 2% in monetary terms.
The CEO also noted that the business remains constrained by production capacity:
“It won’t happen overnight, but from 2026 we will gradually be lifting the capacity restrictions on all Fairlife product formats”, – Quincey says
What does Fairlife produce, and why is demand growing?
Fairlife products are produced using ultrafiltration technology, which increases the protein content and reduces the sugar and lactose levels compared to regular milk.
The range includes ultra-filtered milk, Core Power protein drinks and the Nutrition Plan range. Demand for these products is growing amid a trend towards functional foods and high-protein products.
Coca-Cola acquired Fairlife in full in 2020. Since then, the brand has shown rapid growth and has become one of the company’s key assets outside the carbonated drinks segment.
Investments in the dairy sector
The $650 million investment in Fairlife’s milk production demonstrates the company’s long-term commitment to the dairy sector and functional beverages. The new facilities are expected to remove production constraints and support the brand’s continued growth.
In 2025, Coca-Cola’s organic revenue growth stood at 5%, whilst Fairlife is showing significantly higher growth rates, making it one of the company’s key growth areas.
Source: TheStreet
