Fairlife costs about €3.55 ($4) for a 1.5-litre bottle – more than organic milk and about double what conventional milk sells for in the US, according to Bloomberg Business.

In its first year on shelves, Fairlife reached about $90m in sales. Milk is only one of the latest attempts by Coca-Cola to offset declining soda consumption with healthier products.

“We look at milk, honestly, as one of nature’s superfoods,” says Melanie Kahn, vice-president for marketing at Fairlife.

Largest US dairy processor

Dean Foods, the largest dairy processor in the US, has put Greg Schwarz, a former brand manager for Coke, in charge of its marketing.

Dean has co-branded its regional milks under one umbrella called DairyPure. The drinks are hormone- and antibiotic-free. The company is releasing a lactose-free variety this year. Dean has 60 milk-processing plants around the country. “We can do local better than anybody,” Schwarz says.

Consumers want animals and workers treated well without compromising taste, convenience or quality, says Fairlife co-founder Mike McCloskey, a veterinarian turned farmer. He’s long been fixated on the comfort of cows and sustainable farming methods, such as converting manure into methane to power dairies.

Uphill climb

Milk consumption fell to about 19 gallons a year in 2013, according to the US Department of Agriculture.

Some say Coca-Cola's drive for dairy will be an uphill climb, given Fairlife’s premium pricing, but the company believes its efforts will pay off.

They know dairy better than anybody. We know consumers

The product relies on a cold filtration system to separate the five parts of milk – water, vitamins and minerals, lactose, protein and fat – and recombines them in different recipes, changing the final product's nutritional makeup.

Fairlife uses Coke for guidance on research and development, chemistry and marketing. Its board is split between members from Coke and farmers from the co-operative.

The soda giant takes a hands-off approach to the partnership, says Scott Uzzell, president and general manager for Coke’s Venturing and Emerging Brands group. “They know dairy better than anybody,” Uzzell says. “We know consumers.”

Read the full article on Bloomberg Business here.