May 17, 2013
In order to provide additional manufacturing capacity for its growing kefir based business, Lifeway Foods, Inc. announced the US$7.4 million acquisition of the Golden Guernsey dairy plant in Waukesha, Wisconsin.
Adding the 170,000 square foot plant to Lifeway's existing 50,000 square foot facility in Morton Grove, Illinois, will more than quadruple the company's production capacity and provide much needed expansion abilities.
The Golden Guernsey plant was shuttered this past January following a bankruptcy filing, leaving 112 employees without jobs.
Lifeway plans to reopen the plant this summer and rehire a portion of the workforce to staff the facility. The transaction is expected to close on June 10. Lifeway's growth has been fuelled in part by the burgeoning natural foods movement as well as mounting awareness of the health benefits of probiotic products like kefir.
Sales of probiotic foods and supplements jumped 79% over the past two years, settling at US$2.25 billion in July 2012, according to data from natural foods market research company SPINS. Organic food sales in the US alone jumped from US$11 billion in 2004 to US$27 billion in 2012, according to the Nutrition Business Journal, with growth in conventional grocery stores as well as natural foods markets.
ProBugsâ„¢ Bites for infants, other new ProBugs varieties for older children, frozen kefir bars, and a Greek kefir line featuring extra protein.
Lifeway Foods, Inc. (LWAY) is America's leading supplier of the cultured dairy products known as kefir. Lifeway Kefir is a dairy beverage that contains 10 exclusive live and active probiotic cultures plus ProBoostâ„¢. In addition to its line of Kefir products, the company produces a variety of Frozen Kefir and probiotic cheese products. Lifeway also sells frozen kefir, kefir smoothies and kefir parfaits through its Starfruitâ„¢ retail stores.
