Coca-Cola is committing $650 million to expand its Fairlife production facility in Coopersville, Michigan. The investment will add two new production lines and approximately 245,000 square feet of manufacturing space. Commercial production on the new lines is expected to begin in 2028.
The expansion reflects sustained demand for Fairlife’s ultra-filtered, lactose-free milk and protein shake products. Fairlife has been operating near capacity limits for several years, and the Michigan investment is designed to relieve that constraint.
What the expansion involves
The Michigan investment will install two additional high-speed production lines at the existing Coopersville facility. The plant has been part of the community since 2012 and currently employs more than 400 people. The expansion is expected to add approximately 150 new jobs.
Construction is expected to begin later this year. The project is receiving state support, including an ASESA abatement worth $3.9 million, approved by the Michigan Strategic Fund Board.
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The Michigan expansion is separate from a $650 million Fairlife facility in Webster, New York, which is scheduled to open this year. Coca-Cola also operates an existing Fairlife plant in Goodyear, Arizona. Together, the two new investments represent more than $1.3 billion committed to a single brand.
Why Fairlife matters to Coca-Cola
Fairlife has become one of Coca-Cola’s most significant growth stories. At a Citi investor event in early 2025, CEO James Quincey put the scale of the brand’s rise in stark terms.
“In 2014, the retail value of Fairlife was $10 million,” Quincey said. “Last year it was nearly $4 billion. And of course, it’s a compounding business.”
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In the 52 weeks ending December 2025, Fairlife’s sales grew 28% year over year to $782 million in the refrigerated white milk category alone, according to Circana data. That stands in sharp contrast to the broader milk category, which saw only 2% dollar sales growth over the same period.
Quincey has described Fairlife as a capacity-constrained business. Speaking on Coca-Cola’s most recent earnings call, he addressed the pace of the capacity ramp.
“Obviously, that doesn’t all turn on with a flick of the switch on day one as much as one would wish it would,” Quincey said, “and that will ramp up over 2026, but it will steadily debottleneck our constraints on capacity across all the different Fairlife variants and package sizes.”
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What Fairlife is and why consumers buy it
Fairlife uses an ultra-filtration process that concentrates protein and reduces sugar and lactose compared to conventional milk. The product line includes ultra-filtered milk, Core Power protein shakes, and Fairlife Nutrition Plan shakes.
The brand has benefited from a broader consumer shift toward higher-protein, functional food and beverage products. It competes in a segment that has grown even as fluid milk volumes have declined and some plant-based milk brands have faced slowing growth.
Coca-Cola acquired Fairlife fully in 2020. The brand has since far exceeded the company’s expectations, growing from a niche dairy product into one of the most recognizable names in the functional beverage category.
Key facts about the Fairlife expansion
- Michigan investment:$650 million to add two production lines and 245,000 square feet at the Coopersville facility.
- New jobs: Approximately 150 new positions at the Michigan plant.
- Production timeline: Construction begins later this year, commercial production expected in 2028.
- New York facility: A separate $650 million plant in Webster, New York, is scheduled to open this year.
- Existing footprint: Fairlife also operates a plant in Goodyear, Arizona.
What this means for Coca-Cola investors
The expansion signals Coca-Cola’s confidence in Fairlife as a long-term growth driver. The company is committing significant capital to a facility that will not generate commercial returns until 2028, indicating a multi-year view on sustained demand.
Coca-Cola’s full-year 2025 organic revenue growth came in at 5%. Fairlife has grown significantly faster than that company average, making it one of the higher-priority investment areas within the portfolio.
Fairlife has also outpaced Coca-Cola’s other major non-soda acquisition. Compared to the Costa Coffee acquisition in 2018, Fairlife outpaced it significantly and generated stronger returns than the company initially anticipated. For investors watching Coca-Cola’s evolution beyond carbonated beverages, Fairlife represents one of the clearest examples of the company building a meaningful non-soda revenue stream.
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