Core Viewpoint - The collaboration between Coca-Cola and Mengniu for the fairlife brand has officially ended, with the joint venture "Keniule" being dissolved after failing to gain traction in the Chinese market [1][6]. Group 1: Background of the Collaboration - The fairlife brand was initially established in 2012 as a joint venture between Coca-Cola and Select Milk Producers, launching ultra-filtered milk in 2014 that doubled protein content and removed lactose [2]. - Mengniu began discussions with Coca-Cola in early 2018 to introduce fairlife to the Chinese market, leading to Coca-Cola acquiring full ownership of fairlife for $980 million in December 2019 [2][3]. - "Keniule" was officially established in October 2020, with Coca-Cola holding 51% and Mengniu 49%, and a significant investment of 2.1 billion yuan was made to build a factory in Bengbu [3]. Group 2: Product Launch and Features - The fairlife brand was launched in China in September 2021, introducing three key products: whole milk, low-fat milk, and chocolate milk, which were representative of the brand in North America [3]. - Fairlife's unique selling proposition included higher protein and calcium content, longer shelf life, and zero lactose, achieved through an "over-filtration" production process [5]. - Fairlife's pricing was positioned higher than most competitors, with whole milk priced at approximately 11.9 yuan for 195ml and 34.9 yuan for 710ml, making it about 30% more expensive than regular high-end milk [6]. Group 3: Market Challenges and Withdrawal - Despite the backing of two major companies, fairlife struggled to convince Chinese consumers to pay a premium for its products, leading to a decline in sales and eventual withdrawal from various retail channels by early 2022 [6][9]. - The brand attempted to penetrate the market through both retail and B2B channels, including a partnership with Costa Coffee, but failed to replicate the success of competitors like OATLY [7]. - By April 2023, fairlife was completely withdrawn from both online and offline sales, with the companies citing a need for strategic evaluation [9]. Group 4: Future Directions - Following the cessation of fairlife, Coca-Cola is continuing to explore the dairy market in China with the launch of a new product called "Lubeile," which focuses on high-nutrition milk [10]. - The new product, priced at 8 yuan for a 256ml bottle, emphasizes high protein content and aims to align better with the preferences of Chinese consumers [11].