Lifeway Foods Expands Retail Footprint with Thousands of New Lifeway Kefir and Farmer Cheese Placements Across Major U.S. Retailers in 2025

Rhea-AI Summary

Lifeway Foods (LWAY) announced major retail expansion plans for 2025 alongside strong financial performance. The company reported $37.6M in net sales for April-May 2025, up 10.7% YoY, with YTD sales reaching $83.7M. Lifeway projects Q2 2025 net sales between $52-56M. The expansion includes new product placements across major retailers including Amazon Fresh, BJ's Wholesale, CVS, HEB, Target, and Whole Foods. Key products gaining distribution include Lifeway Kefir in various sizes and flavors, plus Farmer Cheese, which has seen a 63% unit increase YTD in measured channels. The expansion capitalizes on growing consumer interest in probiotic and fermented foods, driven by social media trends around gut health and wellness benefits.

Positive

• Net sales increased 10.7% YoY to $37.6M for first two months of Q2 2025
• Significant retail expansion across multiple major U.S. retailers including Amazon Fresh, Target, and Whole Foods
• Strong 63% unit growth in Farmer Cheese product line year-to-date
• Positive Q2 2025 guidance of $52-56M in expected net sales
• Social media trends driving increased demand for kefir products

Negative

• None.

Insights

Food Industry and Retail Analyst

Lifeway's 10.7% sales growth and major retail expansion signals strong market momentum for functional dairy products in 2025.

Lifeway Foods is experiencing remarkable growth momentum, with $37.6 million in net sales for April-May 2025, representing a 10.7% year-over-year increase. Year-to-date sales have reached $83.7 million, and management has provided Q2 guidance of $52-56 million - signaling continued confidence in their growth trajectory.

The substantial retail expansion announced across major chains is particularly significant. The company is securing thousands of new placements across diverse retail channels including mass market (Target), specialty grocery (Whole Foods), drugstores (CVS), club stores (BJ's), e-commerce (Amazon Fresh), and regional grocers. This multi-channel strategy provides Lifeway with broader consumer access points and reduced dependency on any single retail partner.

Two product categories are driving this expansion: kefir drinks and farmer cheese. The 8oz kefir format appears to be a strategic focus, likely aimed at capturing single-serve, on-the-go consumption occasions. The expansion of farmer cheese into new retailers indicates Lifeway is successfully leveraging its cultured dairy expertise beyond its core kefir business.

Notably, Lifeway is benefiting from organic social media momentum, with the CEO referencing viral TikTok and Instagram content connecting kefir to anti-bloating and skin health benefits. This consumer-generated content provides valuable marketing amplification without additional spend. The 63% unit increase for farmer cheese in measured channels further validates market acceptance of their product diversification strategy.

This expansion comes amid growing consumer interest in functional nutrition and gut health, positioning Lifeway to capitalize on current wellness trends with their probiotic-rich product portfolio. The breadth of retail adoption indicates strong buyer confidence in the category's continued growth potential.

Financial Analyst

Strong Q2 performance with 10.7% growth and significant retail expansion supports bullish growth outlook for Lifeway.

Lifeway's interim financial results demonstrate robust performance, with $37.6 million in net sales for the first two months of Q2 2025, representing a 10.7% year-over-year increase. This growth rate is impressive in the packaged food sector, where mid-single digit growth is typically considered strong. The company's year-to-date sales of $83.7 million through May 31 provide a solid foundation for 2025 performance.

Management's Q2 guidance of $52-56 million suggests they expect the positive momentum to continue through June. The lower end of this range would represent approximately 9% growth for the full quarter, while the upper end would approach 16% growth - signaling confidence in their near-term trajectory.

The retail expansion announced is particularly material from a financial perspective. New distribution in major retailers like Target (1,100+ new shelf slots), Whole Foods (nationwide organic 8oz kefir launch), and Amazon Fresh (both physical and e-commerce) represents significant revenue growth potential. The diversification across multiple retail channels also reduces concentration risk.

The growth in farmer cheese (63% unit increase in measured channels) is especially notable as product diversification typically improves margins and reduces dependency on a single product line. The expansion of this product line to chains like HEB, Kroger divisions, and Lowes Foods suggests Lifeway is successfully executing a portfolio expansion strategy.

These distribution wins create a pipeline for sustained revenue growth through 2025 and beyond, as new retail placements typically drive incremental sales over multiple quarters as consumer adoption builds. The emphasis on functional nutrition aligns with premium pricing opportunities, supporting potential margin expansion alongside topline growth.

Company has surpassed $37.6 million in net sales for the first two months of the second quarter, from April 1, 2025 through May 31, 2025, representing a 10.7% increase from the prior year

Year-to-date net sales for the Company have reached $83.7 million as of May 31, 2025

Company provides net sales guidance for the second quarter of 2025

Consumer interest in probiotic, protein-packed nutrition brings additional focus to cultured dairy drinkables and soft cultured cheese categories

MORTON GROVE, Ill., June 04, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), a leading U.S. su­pplier of kefir and fermented dairy products, today announced expanded distribution for several of its top-selling product lines at major retailers nationwide. The latest additions mark a significant step in the Company's mission to make probiotic-rich, gut-healthy foods more accessible to consumers across the country. The Company also announced it has surpassed $37.6 million in net sales for the first two months of the second quarter, from April 1, 2025 through May 31, 2025, representing a 10.7% increase from the comparable period in the prior year. Year-to-date net sales for the Company as of May 31, 2025 have reached $83.7 million. Given the strong Company performance, Lifeway now expects that net sales for the second quarter ended June 30, 2025, will be in the range of $52 million to $56 million.

Key upcoming retail expansions include:

• Amazon Fresh: Lifeway introduces new 8oz Lifeway Organic, Lactose Free Flavor Fusions (Coconut Pineapple, Passionfruit Lychee, Blueberry Lavender) and Lifeway Organic Kefir Shots (Strawberry, Mixed Berry) in 61 Amazon Fresh physical stores, plus availability through Amazon Fresh e-commerce distribution.
• BJ's Wholesale Club: Two new 8oz kefir SKUs will be available in 268 warehouse locations, offering convenient wellness drinks for families.
• CVS: Three 32oz Lifeway Kefir flavors are expanding across CVS stores, giving shoppers easy access to probiotic-rich options.
• HEB: Launching in June, Lifeway's Farmer Cheese will be available in HEB stores across Texas, delivering a high protein, cultured dairy option.
• Hy-Vee: Four Whole Milk Kefir items and Farmer Cheese are now available in 180 Hy-Vee locations, enhancing Lifeway's Midwest reach.
• King Soopers, Fred Meyer, Ralph's, QFC (Kroger Divisions): Lifeway's Farmer Cheese is now available in these key regional banners, expanding reach across the West and Pacific Northwest.
• Lowes Foods: Shoppers can now find Lifeway Farmer Cheese in Lowes Foods stores throughout the Carolinas.
• Publix: Two new 8oz Lifeway Kefir items are launching in over 1,400 Publix stores, bringing new convenience options to the Southeast.
• Target: Lifeway will expand the distribution of the three current 32oz items across over 1,100 new shelf slots, significantly expanding visibility and availability.
• Whole Foods Market: Beginning in July, Lifeway's organic 8oz kefir items will launch in Whole Foods locations nationwide.
• Winn-Dixie: Four 32oz Lifeway Kefir items are launching in 170 stores, building on Lifeway's growth in the Southeastern U.S.

"This expansion reflects the growing demand for functional foods that support gut health and overall wellness," said Julie Smolyansky, CEO of Lifeway Foods. "Viral social posts on TikTok and Instagram about kefir related to anti-bloating hacks and skin health are creating robust demand for Lifeway's key product line. Additionally, we're seeing a 63% unit increase in measured channels year-to-date for Lifeway Farmer Cheese, signaling incredible potential at mass grocers for this cult favorite. We're excited to bring our probiotic-rich Lifeway Kefir and Lifeway Farmer cheese to even more families across the country, through trusted retail partners who are working with us to provide a great selection of America's favorite kefir and farmer cheese for their customers. "

Lifeway's continued distribution growth comes amid a rising consumer interest in fermented foods and functional nutrition. All Lifeway products are made with live and active cultures and are crafted to support immunity, digestion and long-term health.

About Lifeway Foods, Inc.
Lifeway Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as kefir. In addition to its line of drinkable kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France. Learn how Lifeway is good for more than just you at lifewayfoods.com.

Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, the drivers of demand for Lifeway's products, consumer trends, the anticipated effects of scheduled upgrades at the Waukesha plant, expected operating efficiencies and expectations regarding future operating and financial performance. These statements use words, and variations of words, such as "will," "continue," "future," "increase," "believe,"  "outlook," "expect," and "predict." You are cautioned not to rely on these forward-looking statements. These forward-looking statements are made as of the date of this press release, are based on current expectations of future events and thus are inherently subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lifeway's control. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from Lifeway's expectations and projections. These risks, uncertainties, and other factors include: price competition; the decisions of customers or consumers; the actions of competitors; changes in the pricing of commodities; the effects of government regulation; possible delays in the introduction of new products; customer acceptance of products and services; and uncertainty regarding proposals or other actions taken by shareholders related to the unsolicited proposal made by Danone North America PBC ("Danone") to acquire all of the shares of Lifeway stock that Danone does not already own. A further list and description of these risks, uncertainties, and other factors can be found in Lifeway's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Copies of these filings are available online at https://www.sec.gov, http://lifewaykefir.com/investor-relations/, or on request from Lifeway. Lifeway expressly disclaims any obligation to update any forward-looking statements (including, without limitation, to reflect changed assumptions, the occurrence of anticipated or unanticipated events or new information), except as required by law.

Perceptual Advisors
Dan Tarman
Email: dtarman@perceptualadvisors.com

Derek Miller 
Vice President of Communications, Lifeway Foods
Email: derekm@lifeway.net 

General inquiries:
Lifeway Foods, Inc.
Phone: 847-967-1010
Email: info@lifeway.net

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SOURCE Lifeway Foods, Inc.

FAQ

What is Lifeway Foods (LWAY) Q2 2025 revenue guidance?

Lifeway Foods expects Q2 2025 net sales to be between $52 million and $56 million.

How much did Lifeway Foods sales grow in April-May 2025?

Lifeway Foods reported $37.6 million in net sales for April-May 2025, representing a 10.7% increase from the same period last year.

Which major retailers are adding Lifeway Foods products in 2025?

Major retailers adding Lifeway products include Amazon Fresh, BJ's Wholesale Club, CVS, HEB, Hy-Vee, Kroger divisions, Publix, Target, and Whole Foods Market.

What is driving the growth in Lifeway Foods (LWAY) sales?

Growth is driven by increasing consumer interest in probiotic and fermented foods, social media trends around gut health, and viral TikTok and Instagram posts about kefir's health benefits.

How is Lifeway's Farmer Cheese performing in the market?

Lifeway's Farmer Cheese has shown strong performance with a 63% unit increase in measured channels year-to-date.