COOPERSVILLE, Mich. – A brand of lactose-free milk will expand production at a plant in Michigan. Fairlife, which also makes protein shakes, will see an up to $650 million investment at its plant in Coopersville just west of Grand Rapids.

Significant growth in consumer demand was cited for plans to add two high-speed production lines for the brand owned by the Coca-Cola Co. One hundred and fifty jobs are expected to be created at the plant, which now employs over 400 people.

According to Coca-Cola officials, construction is expected to start later this year. Close to 250,000 square feet will be added to the plant, which has become one of the state’s largest dairy-related food processors since opening in 2012.

The state is providing Coca-Cola with nearly $4 million in property tax relief on the investment over a 15-year period. The company will also share a $17 million state grant with the city for infrastructure upgrades at the plant and throughout the community.

Tim Boring, director of the Michigan Department of Agriculture and Rural Development, said the incentive package represents the ongoing mission by the state to improve quality of life for residents.

“We’re committed to attracting projects that improve infrastructure and value-added processing in a way that benefits our industry, our communities and regional economies,” he said.

Coca-Cola also operates a Fairlife plant in Arizona and is constructing a $650,000 plant near Rochester, N.Y.

According to data from Circana, a consumer information company, Fairlife sales increased by 28 percent last year to $728 million just in the refrigerated white milk category. In comparison, the broader milk category saw just a 2 percent growth in sales over the same time.

According to Coca-Cola CEO James Quincey, the retail value of Fairlife rose from $10 million in 2014 to nearly $4 billion last year.

Fairlife uses an ultra-filtration process that concentrates protein and reduces sugar and lactose below levels of conventional milk.

Industry experts credit a shift in consumer preference toward higher protein, functional food and beverage products for the increase in Fairlife sales.

The early beginnings of Fairlife are rooted at Fair Oaks Farms in northwest Indiana, where owners Mike and Sue McCloskey came up with the idea of ultra-filtered milk.

The process separates the water, butterfat, protein, vitamins, minerals and lactose from the milk.

That allows for the removal of lactose to make the milk easier to digest for lactose-intolerant consumers. About half the sugar is also taken out while the amount of protein and calcium in the milk increases 50 percent and 30 percent, respectively.

Fair Oaks Farms, a popular agricultural theme park with about 30,000 dairy cows, also became a major Fairlife supplier through a partnership with Coca-Cola.

Boring said the expansion of the Fairlife plant – with help from financial incentives from the state instead of going elsewhere – is a positive sign.

“Long term partnerships like these are evidence that companies see the strength of Michigan’s food, agriculture and forestry industry and want to leverage its success,” he said.