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August 4, 2021

Lifeway Foods to buy GlenOaks Farms assets

The kefir dairy maker has agreed a deal to buy undisclosed parts of the California-based yogurt drink supplier.

Lifeway Foods is to snap up assets owned by fellow US dairy business GlenOaks Farms.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The publicly-listed Lifeway, best known for its kefir dairy products, announced the deal in a stock-exchange filing yesterday (3 August).

Lifeway said it would buy “certain assets” of the privately-owned GlenOaks, which was set up in 1984 and based in California, for US$5.8m.

Julie Smolyansky, Lifeway’s president and CEO,  said the move “will further solidify our strong position in California and the western US”. She added: “Their drinkable yogurt is an incredible strategic complement to our kefir and will help expand our presence in key retail partners in the West, which is a crucial area of growth. This acquisition unlocks an adjacent health-oriented consumer and stays true to our core mission of supporting the gut health, immunity and mental wellbeing of our customers.”

Just Food has asked Lifeway for further comment.

Last month, Lifeway, in which Danone owns a 22% stake, announced its entry into France through listings at local Costco stores.

In 2020, the company saw its net sales grow 8.9% to $102m on the back of improved volumes of its branded drinkable kefir products.

Lifeway reported income from operations of $4.9m – compared to a loss on that metric of $1.9m in 2019 – and net income of $3.2m, against $453,000 a year earlier.

In the first quarter of 2021, Lifeway’s net sales rose 15.7% year-on-year to $29.4m. Its income from operations and net income were also higher, reaching $1.9m and $1.3m, compared to $238,000 and $146,000 in the opening three months of 2020.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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