Morton Grove, Illinois, May 16 - Lifeway Foods, Inc., makers of the nutritious, probiotic dairy beverage called kefir, announced today all of its production facilities remain open and fully operational. The only product line temporary affected is the cream cheese spreads which are produced only in Pennsylvania by LFI Enterprises, Inc., a wholly owned subsidiary of Lifeway. LFI provides several functions beyond cream cheese production. Lifeway Foods had total first quarter sales of $11,122,000, an increase of 23% from the same period a year ago.
Julie Smolyansky, CEO commented, "The Consent Decree has absolutely no impact or affect upon Lifeway's products or production facilities. We vigorously disagree with the allegations of the complaint. These same products have been produced for over 15 years for a very small and select group of customers in the Philadelphia area without one consumer complaint, and while we of course respect the government's position, we do not agree with their unfounded assertions. We know that we are and have been compliant as to any alleged violation asserted in the complaint. We would never place our customers at risk."
Edward Smolyansky, CFO commented, "Lifeway and LFI filed an answer to the complaint denying all material allegations. Lifeway will continue to produce and ship all of its products including its kefir, farmer's cheese, and spreadable cheese products without any interruption. As our most recent quarterly report filed on May 15, 2008 exhibits, our core product lines continue to grow at a tremendous pace, and we have never been more confident about the future of our business as a whole."
About Lifeway Foods
Lifeway, recently named Fortune Small Business' 94th Fastest Growing Small Business, and one of only 20 companies to ever be named to the list three straight years in a row, is America's leading supplier of the cultured dairy product known as kefir, and now America's largest supplier of Organic Kefir. Lifeway Kefir is a dairy beverage that contains Lifeway's exclusive 10 Live and Active probiotic cultures. While most regular yogurt only contains two or three of these "friendly" cultures, Lifeway kefir products offer more nutritional benefits. Lifeway offers 12 different flavors of its Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir). Lifeway recently introduced a series of innovative new products such as pomegranate kefir, Greek-style kefir, a children's line of organic kefir products called ProBugs (TM) in a patented no-spill pouch in kid-friendly flavors like Orange Creamy Crawler and Sublime Slime Lime, and a line of organic whole milk kefir. Lifeway also produces a line of products marketed in US Hispanic communities, called La Fruta, Drinkable Yogurt (yogurt drinks distinct from kefir). In addition to its line of Kefir products, the company produces a variety of cheese products and recently introduced a line of organic pudding called It's Pudding!.