Core Insights - Lifeway Foods, Inc. has launched its Lifeway Kefir in the San Diego Costco region, expanding its reach to 60 Costco Wholesale Warehouse locations, enhancing accessibility for millions of members [1][4] - The new product offering includes a 12-count variety pack of 8oz bottles featuring popular flavors like strawberry and peach, designed for convenience and health benefits [2][3] - Lifeway Kefir is marketed as a functional food that supports gut health, immunity, and overall well-being, appealing to health-conscious consumers [3] Product Details - Each 8oz serving of Lifeway Kefir contains 10g of complete protein and 12 live & active probiotic cultures, making it a nutritious option [7] - The product is lactose intolerance-friendly and contains no artificial sweeteners or preservatives, catering to a wide range of dietary preferences [7] Company Background - Lifeway Foods, Inc. is recognized as a leading supplier of kefir and has been acknowledged as one of Forbes' Best Small Companies [5] - The company offers a variety of products, including drinkable kefir, cheeses, and a ProBugs line for children, with distribution across multiple countries [5]

Core Insights - Lifeway Foods, Inc. reported net sales of $46.1 million for Q1 2025, marking a 3.3% increase year-over-year, driven by strong consumer demand for its probiotic products [1][4] - The company achieved its 22nd consecutive quarter of year-over-year sales growth, building on a record-breaking 2024 performance [2][3] Financial Performance - Net sales increased by $1.5 million compared to Q1 2024, primarily due to higher volumes of Lifeway's branded drinkable kefir [4] - Gross profit as a percentage of net sales was 24.0% for Q1 2025, while selling, general, and administrative expenses accounted for 20.2% of net sales [4] - The company reported a net income of $3.5 million, equating to $0.23 per basic and diluted common share for Q1 2025 [5] Strategic Initiatives - Lifeway strategically eliminated a retail relationship in late 2024 to prioritize branded offerings over private label, enhancing margins [2] - The company has expanded its distribution network, securing over 2,000 incremental points of distribution across its product lines in 2025 [3] - Lifeway products are now available in 40 airports nationwide, contributing to a record gross sales week of over $5 million in late April [3] Market Trends - There is an increasing consumer focus on health and wellness, driving demand for protein-rich and probiotic foods, which benefits Lifeway's product offerings [3] - The company anticipates that consumer visits to grocery and club stores will rise as shoppers seek healthier food options amid tightening consumer spending [3]