Fairlife has invested $650 million to open a new 745,000 sq. ft production plant in Webster, New York that will bring nearly 250 jobs to the region, according to an announcement this week.
Construction will begin this fall once parent company Coca Cola secures the remaining approvals and finalizes the due diligence process; Fairlife expects the facility will be operational by Q4 of 2025. The new 100-acre processing plant is located within one of the most prominent dairy producing regions in the country; the company said in a release that it plans to source milk from local dairy co-operatives.
“A new production facility will allow us to significantly increase capacity and deliver fairlife to even more households across the country,” said fairlife CEO, Tim Doelman, in a press release. “As we continue to grow in the Northeast, Webster’s proximity and access to best-in-class dairy farmers make it an excellent location to support our next phase of growth in the region and beyond.”
Fairlife produces a range of dairy products including ultra-filtered milks and two dairy-based ready-to-drink lines: Core Power protein shakes and Nutrition Plan meal replacement shakes. The ultra-filtered milks come in lactose free, low sugar and high protein varieties as well as a range of flavors and fat contents. The products are sold at retailers across the U.S. and distributed via Coke’s network; the brand is also sold in Canada and China.
“This decision by fairlife to expand their operations in Monroe County marks the next chapter in New York’s agricultural success story,” said Governor Kathy Hochul, in a press release. “New York’s dairy industry serves as a crucial economic engine for our state, and this $650 million investment from fairlife will create jobs and drive economic impact. We were in tough competition with other states for what will be the largest dairy processing plant in the Northeast and this decision… confirms that New York continues to offer a competitive business environment.”
According to a release, fairlife reached $1 billion in annual retail sales in 2021 for the first time in the brand’s decade-long history. Coca Cola CEO James Quincy labeled fairlife a ‘growth driver’ during the company’s latest earnings call. Ultra-pasteurized has also been a source of growth within the global milk industry and is expected to grow 5.34% by 2027; comparatively, the organic milk industry is set to increase 6.2% over the same period.
But, the announcement comes at a time when the Northeast dairy farming industry has been strained. Hundreds of farmers lost their milk supply contracts after large corporations including Danone and Horizon Organics pulled out of the region last year. Though other dairy companies have stepped in to fulfill farmers’ sourcing needs, managing a widespread sourcing network for the highly perishable ingredient has posed a consistent challenge.
But for Coca-Cola, Fairlife appears to be worth the investment. By locating “the largest dairy processing plant in the Northeast” in upstate New York, the new facility has the potential to bring a sense of stability and longevity to regional dairy farming operations which represent the state’s largest agricultural sector.
“Every year our farmers invest countless dollars into their operations, making central and western New York a premier agricultural community,” said NY state assembly member Brian Manktelow, in a press release. “Beyond the new 250 jobs in the production facility we will see an increased demand for local dairy production and transportation. This is an important step in preserving and improving our status as a top-5 dairy producing state.”
In 2019, fairlife broke ground on a $200 million production facility in Arizona. The brand has come under scrutiny over the years as well for its treatment of its dairy cows at partner farms with Coca Cola paying $21 million to settle a lawsuit over the allegations last year. The alleged animal abuse took place prior to Coca Cola acquiring full ownership of the brand in 2020.