Lifeway Foods, known best for its probiotic kefir beverages, announced third quarter 2008 sales of $11.2 million, up 15% over the same period a year ago. Sales were driven by strong performances from the company’s kefir line, as well as its ProBugs children’s brand.
Third quarter 2008 gross profits increased 30% to $3.5 million. CFO Edward Smolyansky commented on the company’s performance, “Our margins continued to remain strong even as oil and energy prices reached record levels in July and August… Additionally, the cost of milk in October declined to the lowest level in 16 months, and we expect them the decline even further. In a very tight credit environment, our cash flows have never been stronger and, combined with these declining costs, should only further benefit us in the fourth quarter 2008 and into 2009.”
Lifeway also plans to unveil a new ProBugs club variety pack, as the company looks to infiltrate more mass-market outlets. Natural and organic dairy product sales were up 16.1% in 2007, according to NBJ estimates. Certified organic dairy sales increased 19.4%. NBJ expects growth in the ballpark of 14.9% and 16.2% in 2008 for each respective category.
If you are an NBJ Subscriber and would like to read more of NBJ’s coverage of the probiotic market, click the following links:
Probiotic and Prebiotic Foods and Beverages Take Root in the U.S. Once and For All
Supplements Get a Boost From Big Foods’ Entry into Probiotics
As Digestive Problems Bloom, So Do Sales of Probiotics and Other Gut Supplements