One of the heirs to kefir maker Lifeway Foods – who’s in a proxy fight for that company and who has started a competing company – is acquiring a shuttered Saputo dairy plant in Wisconsin with the goal of making kefir.
The Belmont, Wis., plant made cheese for Saputo until its closing early this year. Entrepreneur Edward Smolyansky plans to acquire it and to retrofit it for kefir production – possibly under his new companies, Pure Culture Organics or Lucy’s Organics, possibly for Lifeway, if he’s successful in his proxy fight against his sister for control of that company. He plans to make both dairy- and plant-based versions of the fermented drink.
Edward and his mother Ludmila Smolyansky, together the largest investors in Lifeway, reportedly have filed documents with the Securities and Exchange Commission to challenge the current board of directors and wrest control from Julie Smolyansky, CEO and daughter of founder Michael Smolyansky, a Ukrainian immigrant. They charge she has made poor business decisions and caused the company to underperform.
Nevertheless, Lifeway has reported record sales results for several quarters in a row and ended 2023 with record annual net sales of $160 million, up 13.1%, and net income of nearly $11.4 million, up substantially from the $924,000 in 2022.
Back to the Wisconsin plant acquisition: The nearly 100,000-sq.-ft. facility can process approximately 1 million pounds of fluid milk per day. In addition to dairy-based kefir, a segregated area may produce an alt-kefir derived from almonds and cashews.
“There doesn’t appear to be a non-dairy based kefir product in the United States right now, so several retailers have approached me about filling that void with a nut-based probiotic drink,” said Edward Smolyansky. “This facility’s unique footprint and capabilities should allow us to produce both products without the risk of allergy cross-contamination.” He hopes to start operations in 2025.
His news releases said if Smolyansky’s proxy campaign is successful, he intends to present the facility for independent review by a reconstituted Lifeway Foods board. If not, Pure Culture Organics will use it as its first kefir production site.
Today’s news release also noted the facility has an advanced on-site wastewater treatment and methane capture system. The plant can process up to 120,000 gallons of wastewater per day, converting dairy waste into biomass and capturing up to 93,500 cubic feet of methane gas daily, which is then returned to the local energy grid.
Lucy’s Organics has entered into a partnership agreement with Super Natural Foods, a privately held trading firm specializing in alternative assets and advisory services. The partnership will involve marketing and support for this initiative, as well as upcoming collaborative projects and opportunities.
