In the same week that fairlife was featured in Bloomberg as a continued rising star and “crucial” to owner Coca-Cola’s pivot from sugar, Dairy Farmers of America (DFA) announced their new lower-calorie, low-sugar dairy milk called “Milk50.”

The dairy and beverage industry has had a close eye on the success of fairlife throughout the years. As reported by Bloomberg, retail sales topped $1 billion in 2022, up 1,000% from $90 million in 2015 when it first launched nationwide. This surge has been in tandem with the recent uptick in GLP-1 use across the U.S., as people taking the drug are encouraged to consume protein. This makes fairlife a popular beverage of choice because the main product line boasts 13 grams of protein in 8 ounces and Core Power has about 24 grams per serving.

Milk50 is arriving on the market as another option in the dairy case, providing consumers a milk with 50 calories, 9 grams of protein, and 3 grams of total sugar per cup. DFA is targeting non-dairy beverages with a dairy option for taste and nutrition while also being a lactose-free product. Milk50 will be offered in 1.5-quart bottles with flavor options of original, vanilla, and chocolate.

Rachel Kyllo, chief marketing officer of dairy brands at DFA, said Milk50 provides a high-protein dairy option targeting the health-conscious consumer’s top concerns: calories and sugar.

"While some people switched to plant-based alternatives seeking lower calories, they've been forced to compromise on both taste and nutrition. Now they don't have to settle for less,” Kyllo said.

Using an advanced ultra-filtration technique, DFA removes 75% of the sugar in milk while preserving the protein. To add sweetness, they have chosen allulose for their original and vanilla products. Milk50 was launched nationwide at Target retail stores and several West Coast retailers.

Both Milk50 and fairlife offer what the plant-based beverages can’t: a high ratio of protein per calorie and a nutrient profile that non-dairy alternatives can’t match. In a January 2025 survey of U.S. adults commissioned by DFA and administered by Talker Research, 58% of respondents said they are “welcoming back dairy in their diets after being disappointed with the price, taste, and heavy processing of plant-based beverages,” DFA shared.

As both Coca-Cola and Pepsi struggle with declining sales of soft drinks — dropping 37% since 2000 according to data from Beverage Digest — options that meet consumer demands for healthier beverages is top of mind.

As a dairy industry, we know what this decline feels like as whole, 2%, and skim milk sales have slipped in the same time frame, while flavored milk grew and whole milk has rebounded in recent years. This is due in part to the boom of fairlife, as well as the fact that the dairy nutrition halo continues to make headway with health-conscious consumers.

Could the addition of Milk50, continued growth of fairlife, and additional fluid innovations bring fluid dairy consumption back to 20th century peak levels? The beverage and dairy industry as a whole will be there to keep a finger on the pulse.


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(c) Hoard's Dairyman Intel 2025
February 17, 2025
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