Kefir maker Lifeway Foods has posted a 15% increase in third-quarter sales, which rose to US$11.27m.
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The company said that it has increased its distribution base, with sales from Costco and other retail channels adding to growth.
The introduction of new products, such as the Kefir Wellness Bars, also boosted sales, Lifeway said.
During the quarter, the group felt the benefit of the decreasing price of milk, the company’s largest raw material. According to Lifeway, the cost of milk decreased 25% year-on-year.
“Third quarter 2008 milk prices remained much lower compared to the same period in 2007, which gave us the flexibility to more aggressively promote our products in the second half of the quarter, which is evident in the recent trend increase in demand,” CFO Edward Smolyansky said.
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By GlobalDataThe company did not release profit or margin details. However, in the second quarter, Lifeway saw profits slip despite a 19% sales gain.
