Aug. 21--Lifeway Foods, the top U.S. supplier of kefir, will ramp up production of the cultured milk beverage at the former Golden Guernsey dairy plant in Waukesha, Wis., after seeing profits shrink last year.
In expanding production at the 170,000-square-foot plant that it acquired in May 2013, the Morton Grove-based company hopes to capitalize on the continued growth of the global market for probiotics. The expansion will "more than quintuple" the combined manufacturing capacity of Lifeway's three existing facilities, the company said in a news release.
"We acquired the Golden Guernsey plant because we urgently needed more production capacity," Julie Smolyansky, president and CEO of Lifeway Foods, said in a statement. "Renovating the building to meet our specific manufacturing and packaging needs has been a top priority, and the start of kefir production in Waukesha is an important milestone that will help drive the next chapter in the company's growth."
Lifeway was at risk of being delisted after failing to file key financial reports in a timely manner, as required by Nasdaq. In its annual report, filed with the Securities and Exchange Commission on Aug. 13, the company reported net sales of about $119 million at the end of 2014, an increase of about 22 percent from the previous year.
But profits plummeted. Annual net income totaled $1.96 million, or 12 cents a share, down from about $5 million, or 31 cents a share, in 2013.
Lifeway has already been processing and bottling raw milk at the Waukesha plant for more than a year, according to the news release, following major renovations and food safety upgrades at the facility.
Lifeway was started by Russian immigrant Michael Smolyansky in his Skokie basement in 1986. Nearly 45 percent of the company's stock is held by Chairwoman Ludmila Smolyansky, who worked with her late husband to grow the business. The couple's daughter, Julie, is the CEO, and their son, Edward, is the CFO.
gtrotter@tribpub.com
