Coca-Cola bet on milk and won. But is that enough?

When you walk into Coca-Cola's Chicago office, you're greeted by a giant cowbell instead of the iconic logo. The reason? The company made a bet on milk, and its investment in the Fairlife brand has proven to be a huge success.

Fairlife introduces an innovative milk filtration process that increases protein, halves sugar and removes lactose. The product has become the fastest growing Coca-Cola $KObrand in the US, despite costing three times more than regular milk. It surpassed $1 billion in sales in 2022, a huge jump from $90 million in 2015.

Coca-Cola CEO James Quincey has long championed a vision of a "comprehensive beverage giant" that doesn't just rely on sodas. He has invested in coffee and sports drinks alongside milk. However, 60% of the company's revenues still come from sales of sweetened beverages and concentrates, showing how difficult it is to reduce dependence on the core segment.

Coca-Cola's growth in recent years has come mainly through price increases, not through higher…