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

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.

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By GlobalData

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.