Fairlife of X

When can we buy the Fairlife of beef, chicken or broccolini?

The Fairlife Story

The tradition in agriculture is for each layer of the supply chain to focus on process efficiency. Farms deliver grain to a processor. The processor to the ingredient company. The ingredient company to the consumer packaged goods. The consumer packaged goods to the grocery. Each step is undifferentiated except by price. Designed over decades to deliver calories at low cost. Yield per acre.

If we want to improve health, we need to improve the nutritional quality of food. Calories become less important. Fiber, protein, omega 3/6 balance and other nutrients become more important. More nutrition means more taste. Better taste changes behavior. Better taste drives adoption.

Fairlife's transformation from a traditional milk cooperative to a health-focused brand is a prime example of vertical integration and innovation in the food industry. By controlling the entire process from production to processing and branding, Fairlife created a unique product that resonates with health-conscious consumers. Their ultra-filtered milk, with 50% more protein and 50% less sugar than regular milk, has become a staple in many households, appealing to fitness enthusiasts and those seeking better nutrition.

Fairlife took a process-driven, gallons per cow business and transformed each step of the supply chain in a fashion that provided incentives for the farmer, processor, and grocer. They incorporated novel filtering technology. And created a unique appeal to the cross-fit community, speeding adoption. While the basic costs in production could vary only a little, the value created in the brand proved instrumental in the end when Fairlife sold to Coke for $1B.

In traditional agriculture, the farmer’s “Cut” ends at the farmgate. In the Fairlife example, the farmers gained transactional revenue and equity in the parent company. Consumers of all demographics received a better and healthier product. Fairlife re-engineered the business model with great operations and technology.

Fairlife of X

Fairlifes success story opens up possibilities for similar transformations across the grocery store. Imagine broccoli growers partnering with food scientists to develop convenient, nutrient-dense snacks or even reimagining less healthy options like Cheetos with more nutritious ingredients while maintaining flavor. Perhaps the Farilife of beef or chicken. The opportunity lies in applying Fairlife's integrated approach to other food categories, creating delicious and nutritionally superior products.

In a standard Walmart Super Center, there are 60k SKUs—60K different products that could be re-engineered for better nutrition. Meat, fish, fresh vegetables, and processed food each have an opportunity to rethink their product lines to generate a Fairlife-like appeal. This will require changes in soil, regenerative practices, crop genetics, processing, supplementation, food science, and branding, all of which are part of a system. These innovations are already underway. Slowed a bit because of the commodity supply chain but picking up momentum as more innovators learn to build on the Fairlife like approach.

Although the prices of these new products may vary, they also deliver more health benefits. As Fairlife discovered, consumers will pay more for a product with better taste and health qualities. Within the 60k SKUs in grocery stores, there is an opportunity for many Fairlife-like products. This is the opportunity for Food is Health.

A Path to Food is Medicine

The potential impact of such innovations extends beyond the grocery aisle and into healthcare. Improved nutrition through better quality food products could lead to significant healthcare cost savings. Research suggests that implementing produce prescription programs for adults with diabetes and food insecurity could prevent 292,000 cardiovascular disease events and save $39.6 billion in healthcare costs over a lifetime. This aligns with the growing "food as medicine" movement, where healthcare providers are beginning to prescribe healthy foods as part of treatment plans.

In fact, some states are now testing Medicaid programs that allow funds to be used for food programs, including medically tailored meals and produce prescriptions. These initiatives aim to prevent, manage, and treat diet-related diseases through nutrition, potentially reducing the burden on healthcare systems. As more evidence supports the efficacy of these programs, we may see a future where your doctor prescribes not just medication but also specific foods to improve your health.