Coca-Cola Plans $650m Fairlife Expansion as 2026 Margins Face Pressure
Coca-Cola will invest $650 million to add two production lines at its Fairlife Michigan facility, expanding capacity by 245,000 sq ft and targeting commercial output in 2028 alongside a new New York site later this year. Meanwhile, pricing normalization and volatile input costs are projecting 2026 margin pressure, with volume recovery in India, China and Mexico crucial for profit growth.
1. Fairlife Michigan Expansion
Coca-Cola is allocating $650 million to install two new production lines at its Coopersville, Michigan, Fairlife facility. The project will add 245,000 sq ft of manufacturing space, with construction slated to begin later this year and commercial production expected by 2028.
2. Additional Facilities and Ownership
In addition to Michigan, Coca-Cola will start output at its Webster, New York, site later this year, complementing its existing Goodyear, Arizona, plant. Coca-Cola acquired the remaining Fairlife venture shares in early 2020, moving from a 42.5% stake to full ownership.
3. 2026 Margin Pressure Outlook
As pricing power normalizes and input costs remain volatile, Coca-Cola anticipates 2026 margin pressure. Recovery of volumes in key markets—India, China and Mexico—is seen as essential to sustaining overall profit growth.