Billion-Dollar Milk, $5B SKIMS & YETI’s Wild Multiple

Fairlife: The Billion-Dollar Milk That Broke a Declining Category

U.S. milk consumption has been falling every decade since the 1940s. Yet somehow, Fairlife, a brand that didn’t exist 15 years ago, is now doing $1B+ in retail sales and has become one of Coca-Cola’s fastest-growing billion-dollar brands.

The founders? Mike and Sue McCloskey, veterinarians who believed milk shouldn’t be a commodity. Their thesis was simple but powerful:

➡️ Ultra-filtered milk →
more protein (+50%),
more calcium (+30%),
less sugar (–50%),
lactose-free, and longer shelf life.

Fairlife began in 2012 as a joint venture between Select Milk Producers and Coca-Cola. Select brought the milk + tech. Coke brought the marketing + one of the most powerful U.S. distribution engines.

By 2020, Coke bought the entire business reportedly paying ~$1B for the majority and multiples more through earnouts.

But the rise wasn’t perfect.
A 2019 calf-abuse scandal at a supplier created a massive reputational hit, lawsuits, and boycotts. Fairlife responded with third-party audits, new welfare protocols, and settlements.

Today the question is:
Can Fairlife stay dominant as protein RTDs, high-protein yogurts, and functional dairy alternatives flood shelves?

SKIMS Raises $225M at $5B. Is It the Next Lululemon?

SKIMS is no longer a DTC shapewear brand, it’s becoming a category-spanning lifestyle giant.

The numbers over time:

• 2019: ~$5M raise → $16M valuation

• 2021: $150M → $1.6B

• 2022: $240M → $3.2B

• 2023: $270M → $4B

• 2025: $225M → $5B, led by Goldman Sachs

And now the kicker:
SKIMS is projecting $1B+ in 2025 revenue.

The bull case:

• Category depth across shapewear, underwear, apparel, activewear, menswear

• High repeat purchase + strong brand affinity

• Shift into physical retail mirrors the global scaling strategy of Lululemon

• Strong operational leadership from Jens Grede

• Celebrity engine that actually converts

Lululemon today: $10B revenue / $20B market cap

Investors are asking:
Could SKIMS surpass Lululemon within a decade if it nails international expansion and retail?

YETI Buys Helimix for $38M, A Wild 4–8× Revenue Outcome

This is the dream outcome for a subscale consumer brand.

Helimix, a ball-free shaker bottle, was doing:
➡️ ~$5–$10M in revenue
➡️ A single hero SKU
➡️ No multi-channel empire
➡️ No 9-figure run-rate

Yet YETI just bought its design, tooling, and IP for $38M in cash, a 4–8× revenue multiple in a market where DTC brands typically trade at 3–4× EBITDA.

Why?

Because for a $2.8B company like YETI, Helimix isn’t a brand, it’s a head start:

• Immediate entry into wellness and drinkware adjacency

• Patented design that strengthens the ecosystem

• Proven cultural traction around shaker bottles and fitness influencers

For Helimix, it’s a life-changing exit.
For YETI, it’s strategic acceleration.

🎙 Podcast Highlight: How Wildgrain Built a Subscription Food Business That Actually Works

This week, I sat down with Ismail Salhi, Co-Founder of Wildgrain, the first bake-from-frozen subscription bakery with sourdough breads, pastries, and fresh pastas shipped nationwide.

Why Wildgrain succeeded where others struggled:

🍞 Product as moat
Proprietary frozen dough + artisanal SKUs few can replicate.

📦 Cold-chain discipline
They engineered margin from the start instead of using growth to paper over unit economics.

🔁 Strong retention
Because the product is genuinely exceptional.

📉 SKU focus
Fewer SKUs → better ops → lower costs → stronger LTV.

My favorite moment:
Ismail’s explanation of why “exceptional product first” was the only viable strategy, and how that single choice drove category-leading retention.

🎧 Watch on YouTube, listen on Spotify.

That’s it for this week.
If you liked this issue, forward to a friend who obsesses over brand strategy, capital flows, or exit timing.

In the Money – following the flow of capital in consumer

P.S. We love talking to brands interested in exiting in the next 3-18 months. If you know of any brands interested in exiting, or any firms trying to help port cos manage turnarounds, we'd love to share a POV.

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