Target Deal Boosts Lifeway Sales

Target Deal Boosts Lifeway Sales

MORTON GROVE, Ill.LifewayFoods Inc (NASDAQ:LWAY) continues to chart steady sales growth, as secondquarter revenues jumped 27 percent to $5.1 million. Management credited itsrecent strong performance to an expanded product line, increased marketing and adistribution deal with Target stores. The company, which already has deals withKroger, Albertsons, Safeway and Whole Foods, inked a deal with Target in May forthe distribution of four flavors of Lifeway kefir beverages in as many as 200 ofthe chain stores.

Julie Smolansky, chief executive officer of LWAY, explainedthe deal with Target works well for both companies, which strive to appeal tomore upscale customers, and the success of this deal could spur furtherexpansion into more of Targets chain stores.

Lifeway has made good use of its partnerships, including onewith Danone Foods, which owns 20 percent of LWAY stock and provides sales andmarketing assistance, as well as helping purchase bulk milk at discountedprices. In addition, Lifeway recently purchased another warehouse and expandedits product line to include more nonperishable food items.