Lifeway Foods stock rises on distribution and sales growth

Published 04/06/2025, 22:48
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Investing.com -- Shares of Lifeway Foods Inc (NASDAQ:LWAY) climbed 5% in after-hours trading following the company’s announcement of expanded distribution for its kefir and fermented dairy products across major retailers nationwide. The expansion is a significant move in Lifeway’s strategy to increase the accessibility of probiotic-rich foods in the U.S. market.

Lifeway reported a notable 10.7% increase in net sales for the first two months of the second quarter, reaching $37.6 million, compared to the same period last year. The company’s year-to-date net sales as of May 31, 2025, have also reached $83.7 million. Based on this performance, Lifeway anticipates second-quarter net sales to be between $52 million and $56 million.

The company’s products, including a new line of 8oz Lifeway Organic, Lactose Free Flavor Fusions and Lifeway Organic Kefir Shots, will now be available in 61 Amazon (NASDAQ:AMZN) Fresh stores and through their e-commerce platform. Additionally, Lifeway’s kefir and Farmer Cheese products are set to reach consumers through various other retailers, such as BJ’s Wholesale Club (NYSE:BJ), CVS, HEB, Hy-Vee, and Publix, among others.

Julie Smolyansky, CEO of Lifeway Foods, attributed the expansion to increasing consumer demand for functional foods that promote gut health and wellness. She cited viral social media posts on platforms like TikTok and Instagram, which have spurred interest in kefir for its health benefits. The company also reported a 63% unit increase in measured channels year-to-date for Lifeway Farmer Cheese, indicating a strong potential for growth in mass grocery channels.

Lifeway’s growth comes at a time when consumer interest in fermented foods and functional nutrition is on the rise. The company emphasizes that all its products are made with live and active cultures, designed to support immunity, digestion, and long-term health. With this strategic expansion, Lifeway Foods aims to solidify its position as a leading supplier of kefir and fermented dairy products in the U.S. market.

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