Coca-Cola (NYSE:KO) said on Tuesday that it will partner with Select Milk Producers, a dairy farm cooperative, to acquire a stake in Fair Oaks Farms Brands, which makes Core Power protein milkshakes.
The move strengthens Coca-Cola’s presence in the milk-based drink market. The company began distributing Core Power drinks two months ago in 12 markets, the Associated Press noted.
Dairy-based drinks have become an area of intense competition between Coca-Cola and traditional soft-drink rival PepsiCo (NYSE:PEP) as the companies look to alternative, healthier beverage products in the face of declining soda consumption in the U.S.
Coca-Cola did not reveal the size of its stake in Fair Oaks Farms Brands.
In the past several years, Coca-Cola has moved to expand its line of drink products, adding Minute Maid juice, Dasani water and Powerade sports recovery beverages. In the third quarter, Coca-Cola’s North American soft drink sales volume was flat compared to last year, while overall beverage sales in the region rose 2%, driven by non-soda drinks.
Shares of Coca-Cola rose fractionally in pre-market trading on Wednesday.