Amid mounting scrutiny, Fairlife has severed ties with two Arizona farms 

In a major blow to Coca-Cola’s reputation in the premium dairy sector, Fairlife’s supplier — United Dairymen of Arizona (UDA) — has halted milk deliveries from Rainbow Valley and Butterfield Dairy farms after a six-month undercover investigation by Animal Recovery Mission (ARM). The exposé revealed systemic animal cruelty, including violent acts against cows by farm staff, some of whom held management roles.

ARM released the disturbing findings on February 26, 2025, as part of a new lawsuit filed in California federal court. The legal action also accuses Fairlife of polluting nearby waterways, escalating concerns over the brand’s environmental footprint.

“We are shocked and saddened,” UDA said in a public statement. “Mistreatment of animals has no place in our cooperative or society.” The organization added that all member farms participate in national welfare programs and undergo regular audits.

Fairlife reiterated that it maintains a zero-tolerance policy for abuse. While it doesn’t own any farms, the brand claims to enforce rigorous animal welfare standards for all suppliers. The company highlighted that it has invested nearly $30 million into its animal care programs and mandates independent third-party audits.

However, animal welfare advocates remain skeptical.

“Fairlife has repeatedly failed to ensure humane conditions,” said Richard Couto, ARM founder. “This is not an isolated incident—it’s a systemic issue the brand continues to cover up.”

This isn’t the first time Fairlife has been in the spotlight. In 2019 and again in 2023, similar allegations emerged from farms in Indiana, with Coca-Cola and partners paying a $21 million settlement in 2022 for misleading marketing about animal treatment.

Despite controversies, Fairlife’s sales momentum has not waned. In 2024, the brand was the fastest-growing white milk product in the U.S., with retail sales up 28%, according to Statista. Known for its ultra-filtered milk—50% more protein and half the sugar of traditional milk—Fairlife has become a star performer in Coca-Cola’s portfolio. A new $650 million production facility is set to open in New York later this year to serve northeastern U.S. markets.

Industry Implications

Fairlife’s continued growth amid controversy raises questions about consumer awareness, transparency, and corporate accountability in the high-performance dairy segment. As global consumers increasingly prioritize ethical sourcing, dairy brands—especially those backed by multinational corporations—will face growing pressure to demonstrate genuine animal welfare compliance.