When James Quincey became CEO of Coca-Cola in 2017, soda had broadly been in decline over its health effects. The beverage giant was embarking on an effort to diversify its reach beyond the sugary drink.A key move? Ditching the carbonation and sticking to the basics: cow milk.Launched in 2012, Fairlife 바카라 게임 웹사이트� originally founded as a joint venture between Coca-Cola and wholesale dairy producer Select Milk Producers 바카라 게임 웹사이트� used whimsical, minimalistic packaging that fit with the influx of niche almond, protein and even pistachio milks, outperforming large-container beverages in the dairy aisle.In 2020, Coca-Cola fully acquired Fairlife for an initial $980 million 바카라 게임 웹사이트� an acquisition that has far exceeded the soda giant바카라 게임 웹사이트�s expectations due in part to social media popularity in the health and wellness space. While Americans face higher food prices and a pullback in their spending, they바카라 게임 웹사이트�re still drawn to Fairlife바카라 게임 웹사이트�s ultra-filtered system that draws out lactose and sugar but doubles the protein.In 2022, Coca-Cola announced that Fairlife바카라 게임 웹사이트�s sales surpassed $1 billion.The success is driven by Fairlife바카라 게임 웹사이트�s Core Power protein shake brand, which remains a popular staple at many grocery stores and does not have many direct market-leading competitors.But in its latest earnings call last week, Coca-Cola projected some moderation of Fairlife바카라 게임 웹사이트�s growth in 2025 while it builds a facility in New York, and carbonated beverages still make up the overwhelming majority of sales for Coca-Cola (its competitor, Pepsi, on the other hand, leans on its Frito-Lay snack brand). However, when compared to Coca-Cola바카라 게임 웹사이트�s other big acquisition in the nonsoda space 바카라 게임 웹사이트� Costa Coffee in 2018 바카라 게임 웹사이트� Fairlife has far outpaced it.바카라 게임 웹사이트�The expectations were never for Fairlife to be this successful, I think even for Coke,바카라 게임 웹사이트� said Kaumil Gajrawala, an analyst for finance firm Jeffries.The acquisition was structured so there would be an earn-out 바카라 게임 웹사이트� meaning the amount paid would ultimately be based on the milk brand바카라 게임 웹사이트�s success. In deals like this, the buyer could pay less than buying outright if they바카라 게임 웹사이트�re not sure a product will be successful, Gajrawala said.The total payment for the acquisition is now looking to be $6.2 billion, plus the $980 million Coke initially paid, according to Coca-Cola바카라 게임 웹사이트�s latest earnings report. That would make it among Coke바카라 게임 웹사이트�s priciest acquisitions to date.바카라 게임 웹사이트�Dairy has been tricky for Coke to get into,바카라 게임 웹사이트� Gajrawala said. 바카라 게임 웹사이트�Nothing will ever be as important as a Coke trademark, but this is a nice contributor to growth.바카라 게임 웹사이트�Cashing in on wellnessThe North American market has shown it will invest in health, whether it바카라 게임 웹사이트�s Vital Farms바카라 게임 웹사이트� free-range eggs or Fairlife바카라 게임 웹사이트�s protein-dense milk. Coca-Cola entered the right category at the right time, Citi analyst Filippo Falorni told CNN.바카라 게임 웹사이트�You had a more health-conscious consumer in the United States, and particularly with a bigger focus on protein intake over the last couple of years,바카라 게임 웹사이트� Falorni said.Protein shakes are a $6 billion market, according to Beverage Digest, a global nonalcoholic beverage industry trade publication.Grocery items in the middle-priced range are often what Americans decide to stop buying, Gajrawala said. Consumers are either looking for the lowest-priced product or are willing to pay a lot more for something that바카라 게임 웹사이트�s differentiated.Fairlife, with its successful branding, has managed to pull off the latter, Gajrawala said. And it also benefits from Coca-Cola바카라 게임 웹사이트�s behemoth distribution system, which Falorni said is arguably the best in the world.Risks to growthTikTok users frequently post themselves drinking Core Power before a workout or making a healthier morning iced coffee using Fairlife바카라 게임 웹사이트�s milk.But just as quickly as items go viral on social media, they can also fall out of trend, especially in the health and wellness space.Additionally, in 2022, Fairlife and Coca-Cola agreed to a $21 million settlement in a class-action lawsuit over allegations of inhumane treatment of its cows. The lawsuit claimed consumers were falsely charged a premium because Fairlife promoted well-treated cows.Last year, Fairlife broke ground on a massive production facility in New York state, but Coca-Cola 바카라 게임 웹사이트�is going to look for more categories바카라 게임 웹사이트� to expand its offerings, Falorni said.Coca-Cola is 바카라 게임 웹사이트�very focused on Fairlife because it바카라 게임 웹사이트�s going very nicely. But I don바카라 게임 웹사이트�t think they바카라 게임 웹사이트�re going to stop there in terms of the portfolio diversification,바카라 게임 웹사이트� he said.