US – Coca-Cola-backed firm, Fairlife said it is experiencing all-time high demand across its portfolio, approximating that over 30 million households which is about a quarter of all US households are purchasing a fairlife product.
While some high-profile players including Chobani, Maple Hill, and Organic Valley have recently jumped in – and then out- of the ultra-filtered milk category, fairlife continues to drive the category growth and has been fortunate to grow mid-double-digits across the space in a total portfolio perspective in 2022.
Coca-Cola – which took full ownership of fairlife in 2020 – doesn’t share sales of its sub-segments, which now include yogurts, light ice cream, milk [13g protein/8oz serving], DHA-enhanced milk, Core Power protein shakes [26g protein/14oz bottle], and Nutrition Plan meal replacements drinks [30g protein/11.5oz bottle – launched in early 2021], said VP commercial, Colin Schriver.
However, the top three products of the company are 52oz ultra-filtered milk, which competes in the broader value-added dairy space, and its two protein beverages that meet distinct needs: Core Power for post-workout muscle recovery, and Nutrition Plan, which is a great tasting meal or snack on the go.
When it comes to innovations, its latest innovation – fairlife yogurt with 14g protein and 7g sugar, launched in January 2022, is one of a handful of lactose-free offerings in the dairy yogurt segment, claimed Scriver.
The latest yogurt brand competes along with brands such as Green Valley Creamery, Chobani Zero Sugar, Fage Best Self, and Yoplait lactose-free and the company said the brand is “resonating well with consumers.
Fairlife noted that the vast majority of its consumers are existing category buyers [‘trading up’ within the category], but qualitatively, the company said it often hears consumers say it has “brought them back to milk.”
Although fairlife has a wide distribution in the US, there are still opportunities to grow, where Schriver revealed the Chicago-based dairy is also working with the broader Coca-Cola system to get reach in terms of putting its products on display.
The company is also continuing to grow assortment in a way that helps the retail partners grow their categories and then leveraging brick and mortar and e-commerce so that it can reach consumers wherever and whenever they’re shopping.
On the international front, the dairy noted that Fairlife brand has been well received in China where its value proposition remains the same: more protein, less sugar, and lactose-free.
Outside its home country, the company has a manufacturing plant in Peterborough, Ontario, Canada, processing milk from Canadian farmers to supply the Canadian market, and moved into China via KeNiuLe Dairy Co Ltd, a joint venture with Chinese dairy giant Mengniu, launching its first products in late 2021.
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