Lifeway Foods, Inc. (Lway): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le monde innovant des aliments de vie, un pionnier de la nutrition probiotique qui a révolutionné le paysage alimentaire fonctionnel. Cette entreprise dynamique transforme les produits laitiers simples en une solution de bien-être puissante, offrant aux consommateurs un mélange unique de goût, de santé et de science nutritionnelle. De ses humbles débuts à devenir un leader de la production de kéfir, Lifeway Foods a conçu un modèle commercial sophistiqué qui va au-delà .

Lifeway Foods, Inc. (LWAY) - Modèle commercial: partenariats clés

Producteurs laitiers pour l'approvisionnement en lait

Lifeway Foods Sources Lait de plusieurs fermes laitières à travers les États-Unis. En 2023, la société travaille avec environ 25-30 fournisseurs de produits laitiers régionaux.

Région des fournisseurs laitiers	Volume de lait annuel (gallons)	Durée du contrat
Région du Midwest	3,2 millions	3-5 ans
Fermes laitières du Wisconsin	2,7 millions	Accords de 4 ans
Producteurs laitiers de l'Indiana	1,5 million	Contrats de 3 ans

Chaînes d'épicerie de vente au détail pour distribution de produits

Lifeway Foods maintient des partenariats de distribution avec les principaux détaillants nationaux et régionaux d'épicerie.

• Kroger: 2 742 magasins à l'échelle nationale
• Marché des aliments entiers: plus de 500 emplacements
• Walmart: 4 700 magasins
• Cible: 1 900 magasins

Probiotiques et fournisseurs d'ingrédients

L'entreprise collabore avec des fabricants d'ingrédients et de probiotiques spécialisés pour assurer la qualité des produits.

Fournisseur	Type d'ingrédient	Volume de l'offre annuelle
Chr. Hansen	Cultures probiotiques	45 000 kg
Dupont Nutrition	Souches bactériennes	38 000 kg

Fournisseurs d'équipements d'emballage et de fabrication

Lifeway Foods s'associe à des fabricants d'équipements spécialisés pour les infrastructures de production.

• Groupe GEA: équipement de traitement des produits laitiers
• Tetra Pak: machines d'emballage
• Débit SPX: équipement de fermentation

Collaborations des marques d'aliments pour santé et de bien-être

Les partenariats stratégiques avec les marques axés sur le bien-être améliorent le positionnement du marché.

Marque partenaire	Type de collaboration	Portée du marché
Vallée biologique	Source des ingrédients	National
Purement Elizabeth	Produit de promotion croisée	En ligne / commerce de détail

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: Activités clés

Fabrication de produits de kéfir et probiotique

Volume de production annuel: 40 millions de cas de kéfir et de produits probiotiques à partir de 2023. Installations de fabrication situées à Morton Grove, Illinois et Bellfountain, Oregon.

Emplacement de l'installation	Capacité de production	Types de produits
Morton Grove, IL	25 millions de cas / an	Kéfir, kéfir surgelé
Bellfountain, ou	15 millions de cas / an	Boissons probiotiques, fromage

Recherche et développement de produits alimentaires fonctionnels

Investissement en R&D: 1,2 million de dollars en 2022. Les domaines d'intérêt comprennent:

• Développement de la souche probiotique
• Innovation alimentaire fonctionnelle
• Amélioration nutritionnelle

Marketing et promotion de la marque des alternatives laitières axées sur la santé

Budget marketing annuel: 3,5 millions de dollars en 2023. Les canaux de marketing comprennent:

• Publicité numérique
• Campagnes de médias sociaux
• Promotions de vente au détail
• Sponsorings sur les événements de la santé et du bien-être

Contrôle de la qualité et gestion de la sécurité alimentaire

Certifications: USDA Organic, Projet sans OGM vérifié, casher

Métrique de contrôle de la qualité	Standard	Taux de conformité
Cultures bactériennes	12+ souches probiotiques vivantes	99.8%
Pureté des ingrédients	Ingrédients biologiques	100%

Innovation de produit et développement de nouvelles saveurs

Nouveau produit lance en 2023: 7 variantes de produits uniques

Catégorie de produits	Nouvelles saveurs introduites	Réception du marché
Boisson de kéfir	4 saveurs	+ 15% de croissance des ventes
Kéfir surgelé	3 saveurs	+ 10% de croissance des ventes

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: Ressources clés

Techniques de production de kéfir propriétaires

Lifeway Foods tient 3 brevets enregistrés liés aux processus de production de Kefir en 2023. Les techniques de production de l'entreprise impliquent des méthodes de fermentation spécialisées qui différencient leurs produits probiotiques.

Catégorie de brevet	Nombre de brevets	Année enregistrée
Processus de fermentation du kéfir	2	2019-2021
Développement de la souche probiotique	1	2022

Installations de fabrication

Lifeway fonctionne 2 installations de fabrication primaires Situé à Morton Grove et Glenview, Illinois.

Emplacement de l'installation	Capacité de production	Volume de production annuel
Morton Grove, IL	50 000 unités / jour	18,3 millions d'unités / an
Glenview, IL	35 000 unités / jour	12,8 millions d'unités / an

Réseau de chaîne d'approvisionnement

Lifeway entretient des relations avec 47 fournisseurs laitiers Dans 6 États, assurer une source de matières premières cohérente.

• Distribution des fournisseurs laitiers: région du Midwest (75%)
• Distribution des fournisseurs laitiers: région de la côte ouest (25%)

Capital humain et expertise

En 2023, Lifeway Foods emploie 215 employés à temps plein, avec des rôles spécialisés dans la science alimentaire et la nutrition.

Catégorie des employés	Nombre d'employés	Expertise spécialisée
Scientifiques de l'alimentation	32	Recherche probiotique
Nutritionnistes	18	Développement
Spécialistes de la fabrication	65	Techniques de production

Réputation de la marque

Lifeway Foods a maintenu un 4.2 / 5 Rating aux consommateurs Sur les principales plateformes de vente au détail, avec plus de 15 ans de présence cohérente sur le marché dans les catégories d'aliments probiotiques.

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: propositions de valeur

Produits laitiers probiotiques authentiques et de haute qualité

Lifeway Foods produit des produits laitiers probiotiques avec 12 à 15 cultures probiotiques vivantes et actives par portion. La gamme de produits de l'entreprise comprend le kéfir avec une moyenne de 12 milliards de probiotiques par portion de 8 onces.

Catégorie de produits	Comptage des probiotiques	Portion
Kéfir	12 milliards	8 onces
Kéfir surgelé	7 milliards	4 onces

Solutions de santé intestinale et de bien-être digestives

Lifeway génère environ 139,8 millions de dollars de revenus annuels à partir de produits axés sur les probiotiques ciblant la santé digestive.

• Prend en charge la fonctionnalité du système immunitaire
• Favorise l'équilibre digestif du tube
• Réduit les marqueurs d'inflammation

Divers gamme de saveurs et de formats de kéfir

Lifeway propose 35 variations de produits Kefir distinctes à travers plusieurs formats.

Format de produit	Variétés de saveur
Kéfir potable	12 saveurs
Kéfir surgelé	8 saveurs
Fromage probiotique	5 variétés

Aliments fonctionnels denses nutritionnels

Les produits de Lifeway contiennent en moyenne 11 grammes de protéines par portion et 30% des exigences de calcium quotidiennes.

Engagement envers les ingrédients naturels et biologiques

En 2024, 67% de la gamme de produits de Lifeway est certifiée biologique, avec une source d'ingrédients de 42 fermes laitières biologiques vérifiées.

• Pas de conservateurs artificiels
• Ingrédients vérifiés non OGM
• Sources de lait nourri à l'herbe

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: relations avec les clients

Engagement direct aux consommateurs via les médias sociaux

En 2024, Lifeway Foods maintient une présence active sur les réseaux sociaux avec:

Plate-forme	Nombre de suiveurs
Instagram	87 500 abonnés
Facebook	62 300 abonnés
Gazouillement	15 400 abonnés

Éducation nutritionnelle et contenu axé sur la santé

Lifeway produit du contenu numérique mensuel, notamment:

• 4-6 articles de blog nutritionnels par mois
• Vidéos de recettes hebdomadaires
• Webinaires de santé trimestriels

Programmes de fidélisation de la clientèle

Lifeway Kefir Rewards Program Statistics:

Métrique du programme	Valeur
Total des membres	42,000
Taux d'achat répété annuel	68%
Dépenses moyennes des membres	127 $ par an

Site Web interactif avec des informations sur le produit

Métriques d'engagement du site Web:

• Visiteurs mensuels du site Web: 215 000
• Temps moyen sur le site: 3,2 minutes
• Pages de produits visualisés: 487 000 mensuels

Mécanismes de rétroaction des consommateurs et d'amélioration des produits

Canaux de rétroaction des clients:

Canal de rétroaction	Interactions mensuelles
Avis sur les produits en ligne	1,250
Email du service client	780
Interactions des médias sociaux	2,100

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: canaux

Magasins d'épicerie de vente au détail

Lifeway Foods distribue des produits dans environ 25 000 épiceries de détail à l'échelle nationale, notamment:

Chaîne de détail	Nombre de magasins
Kroger	2 742 magasins
Walmart	4 742 magasins
Marché des aliments entiers	500 magasins
Trader Joe's	530 magasins

Magasins d'aliments naturels

Lifeway Foods cible les détaillants d'aliments naturels spécialisés avec ses gammes de produits probiotiques.

• Épiciers naturels
• Magasins d'aliments naturels indépendants
• Centres de nutrition spécialisés

Plateformes de commerce électronique en ligne

Plate-forme	Volume des ventes
Amazone	1,2 million de dollars de ventes annuelles
Marché prospéré	Ventes annuelles de 450 000 $

Ventes de sites Web directes

Lifeway.com génère environ 750 000 $ en ventes directes annuelles.

Détaillants de nourriture et de bien-être spécialisés

• GNC
• Emplacements de vitamine Shoppe
• Centres de bien-être locaux

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: segments de clientèle

Consommateurs soucieux de leur santé

Taille du marché pour les aliments fonctionnels aux États-Unis: 275,95 milliards de dollars en 2022

Groupe d'âge	Pourcentage de consommateurs soucieux de leur santé	Dépenses annuelles en produits probiotiques
18-34 ans	42%	345 $ par personne
35 à 54 ans	38%	412 $ par personne
Plus de 55 ans	20%	287 $ par personne

Individus à la recherche de solutions de santé digestives

Supplément de santé digestive Valeur marchande: 56,4 milliards de dollars dans le monde en 2022

• 62% des consommateurs signalent des problèmes de santé digestifs
• 45% recherchent activement des solutions probiotiques
• Dépenses annuelles moyennes en produits de santé digestifs: 278 $ par individu

Passionnés de fitness et de bien-être

Taille du marché du complément de fitness: 134,2 milliards de dollars en 2022

Catégorie de fitness	Nombre de consommateurs	Intérêt du produit probiotique
Membres du gymnase	64,2 millions	53%
Praticiens de yoga	36,7 millions	47%
Participants CrossFit	4,5 millions	61%

Individus intolérants au lactose

Population intolérante au lactose aux États-Unis: 36% des adultes

• Estimé 120 millions d'Américains touchés
• Dépenses annuelles moyennes sur des produits sans lactose: 425 $ par personne
• Marché des produits sans lactose: 12,3 milliards de dollars en 2022

Les familles intéressées par les options alimentaires nutritives

Valeur marchande de la nutrition familiale: 89,5 milliards de dollars en 2022

Type de famille	Pourcentage de recherche d'options nutritives	Dépenses annuelles de produits nutritionnels
Familles avec enfants de moins de 18 ans	68%	1 245 $ par famille
Jeunes familles (0-5 ans)	75%	1 587 $ par famille
Ménages multi-générationnels	55%	1 102 $ par famille

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: Structure des coûts

Achat d'ingrédients bruts

Depuis 2024, les aliments de vie des aliments de vie des ingrédients primaires, notamment:

• Lait: 0,35 $ - 0,45 $ la livre
• Cultures bactériennes: 12 $ - 18 $ par kilogramme
• Matériaux d'emballage: environ 0,10 $ à 0,15 $ par unité

Catégorie d'ingrédient	Coût d'achat annuel	Pourcentage du coût total
Lait	8,2 millions de dollars	42%
Cultures bactériennes	1,5 million de dollars	7.5%
Matériaux d'emballage	3,7 millions de dollars	19%

Frais de fabrication et de production

Les coûts de production pour 2024 comprennent:

• Offres de fabrication totale: 6,3 millions de dollars
• Coûts de main-d'œuvre: 4,1 millions de dollars
• Entretien de l'équipement: 1,2 million de dollars
• Dépenses opérationnelles de l'installation: 2,5 millions de dollars

Activités de marketing et de promotion

Répartition des dépenses de marketing:

Canal de marketing	Dépenses annuelles	Pourcentage du budget marketing
Marketing numérique	1,1 million de dollars	38%
Médias traditionnels	0,7 million de dollars	24%
Participation des salons commerciaux	0,5 million de dollars	17%

Investissements de recherche et développement

Détails de dépenses de R&D:

• Budget total de R&D: 1,8 million de dollars
• Développement de nouveaux produits: 1,2 million de dollars
• Amélioration des processus: 0,4 million de dollars
• Recherche nutritionnelle: 0,2 million de dollars

Coûts de distribution et de logistique

Déchange de dépenses logistiques:

Catégorie de distribution	Coût annuel	Coût par unité
Transport	2,6 millions de dollars	0,18 $ par unité
Opérations de l'entrepôt	1,4 million de dollars	0,10 $ par unité
Gestion des stocks	0,9 million de dollars	0,06 $ par unité

Lifeway Foods, Inc. (LWAY) - Modèle d'entreprise: Strots de revenus

Ventes de produits au détail

En 2022, Lifeway Foods a déclaré des ventes nettes totales de 78,5 millions de dollars. Les ventes de produits au détail représentaient spécifiquement environ 65% du total des revenus, ce qui représente environ 51 millions de dollars de canaux de vente directe à la consommation.

Catégorie de produits	Contribution des revenus	Volume des ventes
Produits de kéfir	42,3 millions de dollars	8,2 millions d'unités
Produits probiotiques congelés	9,7 millions de dollars	2,5 millions d'unités

Distribution de gros

La distribution de gros représentait environ 30% du chiffre d'affaires total de Lifeway en 2022, générant environ 23,7 millions de dollars par le biais de chaînes d'épiceries nationales et régionales.

• Les principaux partenaires de gros incluent Kroger
• Walmart
• Marché des aliments entiers
• Cible

Ventes directes en ligne

Les ventes directes en ligne ont contribué environ 5% du total des revenus, soit environ 3,9 millions de dollars en 2022.

Canal de vente en ligne	Revenu	Taux de croissance
Site Web de l'entreprise	1,8 million de dollars	12% en glissement annuel
Market Amazon	2,1 millions de dollars	15% en glissement annuel

Licence potentielle des technologies probiotiques

En 2022, Lifeway Foods a généré des revenus minimaux à partir des licences technologiques probiotiques, avec des opportunités d'étendue futures potentielles.

Expansion du marché international

Les ventes internationales représentaient moins de 2% des revenus totaux en 2022, totalisant environ 1,5 million de dollars, principalement sur les marchés canadiens et européens.

Lifeway Foods, Inc. (LWAY) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Lifeway Foods, Inc. (LWAY) is capturing market share in the functional food space right now. The value proposition centers on being the go-to source for gut-healthy, fermented dairy, which is resonating strongly with today's consumer.

Leading U.S. supplier of probiotic, gut-healthy, fermented foods.

Lifeway Foods, Inc. is America's leading supplier of the probiotic, fermented beverage known as kefir. This leadership position is translating directly into financial performance. For the third quarter ended September 30, 2025, Lifeway Foods delivered record net sales of approximately $57.1 million, which is a 24.0% increase year-over-year. When you adjust for strategic customer exits in 2024, the comparable net sales surge was nearly 29%. For the nine-month period ending September 30, 2025, net sales reached $157.14 million, reflecting a 12.3% increase over the prior year period. The company is defintely capitalizing on the gut health movement.

The core value is backed by improving profitability metrics:

• Gross Profit Margin for Q3 2025: 28.7%.
• Gross Profit Margin expansion year-over-year in Q3 2025: 300 basis points.
• Net Income for Q3 2025: $3.5 million.
• Net Income growth year-over-year in Q3 2025: 19%.

High-protein, nutrient-dense options for health-conscious consumers.

The emphasis on nutrient density is clear across the portfolio, moving beyond just probiotics. The high-protein Lifeway Farmer Cheese line, for example, showed incredible traction in measured channels year-to-date through May 2025, with a unit increase of 63%. This signals strong potential at mass grocers for this specific high-protein offering.

Variety of formats: drinkable kefir, farmer cheese, and functional shots.

Lifeway Foods, Inc. offers its core fermented dairy in several formats to meet different consumption occasions. This variety is key to capturing more shelf space and consumer usage occasions. The company is also innovating with new, on-trend functional beverages.

Product Format/Line	Key Attribute/Example	Reported Growth/Metric
Drinkable Kefir	Flagship product, 32oz items, new 8oz Organic, Lactose Free Flavor Fusions	Net sales growth driven by higher volumes of branded drinkable kefir
Farmer Cheese	High-protein, soft cultured cheese	63% unit increase in measured channels YTD (through May 2025)
Functional Shots	Lifeway Organic Kefir Shots (Strawberry, Mixed Berry)	New product placements in 2025
New Functional Beverage	Muscle Mates™	20 grams of protein, 5 grams of creatine, 12 live and active probiotic cultures

Accessibility via mass market, club, and specialty retail channels.

What once felt like a treasure hunt to find Lifeway on shelves has transformed into coast-to-coast availability. The company is actively securing thousands of new placements across major U.S. retailers. You can see this expansion in the sheer number of new shelf slots and store inclusions announced in 2025.

Recent and upcoming distribution points include:

• Publix: Launching in over 1,400 stores.
• Target: Expanding across over 1,100 new shelf slots.
• BJ's Wholesale Club: New SKUs in 268 warehouse locations.
• Amazon Fresh: New items in 61 physical stores plus e-commerce.
• Whole Foods Market: Organic 8oz kefir items launching nationwide starting July 2025.
• Kroger Divisions (King Soopers, Fred Meyer, Ralph's, QFC): Farmer Cheese now available.

Also, Lifeway Foods is expanding into new channels like corner stores, airports, and universities.

Products supporting wellness trends like GLP-1 medication use.

Lifeway Foods, Inc. is explicitly positioning its portfolio to align with major contemporary health trends. The company is capturing consumer tailwinds, including the surge in GLP-1 medication use, as more people seek nutrient-dense options to support their health goals. This focus on protein and probiotics is a direct response to this evolving consumer need, reinforcing the value of their core kefir and Farmer Cheese lines.

Finance: draft 13-week cash view by Friday.

Lifeway Foods, Inc. (LWAY) - Canvas Business Model: Customer Relationships

You're analyzing how Lifeway Foods, Inc. connects with the people buying their products in late 2025. The relationship is heavily weighted toward the retail shelf, but digital efforts are clearly fueling in-store pull.

Transactional sales through third-party retail channels form the backbone of the customer relationship. Lifeway Foods, Inc. is focused on maximizing shelf presence, which is evident in their aggressive 2025 distribution strategy. For instance, the company secured placements across major retailers including Amazon Fresh, BJ's Wholesale, CVS, HEB, Target, and Whole Foods Market.

This transactional focus is yielding significant results, as seen in the financial performance leading up to the third quarter of 2025. Net sales for the second quarter ended June 30, 2025, hit a then-record $53.9 million, representing a 9.7% year-over-year increase. Momentum accelerated into the third quarter, with net sales reaching a record $57.1 million for the quarter ended September 30, 2025, marking a 24.0% year-over-year increase. The relationship is clearly transactional, but the velocity is driven by brand strength; Lifeway Farmer Cheese, for example, saw a 63% unit increase Year-to-Date in measured channels as of May 2025.

The investment supporting these transactions is visible in the operating expenses. Selling Expense in Q3 2025 was 8.8% of net sales, reflecting continued investment in marketing and distribution. This contrasts with Selling, General and Administrative expenses (SG&A) being 17.6% of net sales in Q2 2025.

Here's a snapshot of the retail footprint expansion driving these transactions:

Retail Channel/Partner	Product/SKU Detail	Store Count/Scope
Publix	Two new 8oz Lifeway Kefir items	Over 1,400 stores
BJ's Wholesale Club	Two new 8oz kefir SKUs	268 warehouse locations
Winn-Dixie	Four 32oz Lifeway Kefir items	170 stores
Hy-Vee	Four Whole Milk Kefir items and Farmer Cheese	180 locations
Target	Three current 32oz items	Over 1,100 new shelf slots
Amazon Fresh	New 8oz Organic, Lactose Free Flavor Fusions and Organic Kefir Shots	61 physical stores plus e-commerce

Digital engagement via social media to build community and loyalty is a key driver for in-store demand. The company explicitly notes that 'Viral social posts on TikTok and Instagram about kefir related to anti-bloating hacks and skin health are creating robust demand for Lifeway's key product line.' This community-building effort positions Lifeway Foods, Inc. as a relevant, modern wellness brand, which helped secure its inclusion on Inc.'s 2025 Best in Business list in the Best Challenger Brands category.

Direct-to-consumer education on gut health and product benefits leverages scientific backing to build trust and loyalty beyond simple transactions. Lifeway Foods, Inc. is capitalizing on the 'surge in GLP-1 medication use and gut health awareness.' The company highlights research showing that consuming probiotic fermented dairy foods like kefir was associated with a 20 to 30% reduction in colon cancer. Furthermore, education focuses on the mind-gut access, noting that kefir can help reduce stress, depression, and anxiety via the vagus nerve, alongside benefits to skin health. This educational push is recognized by the industry, as the company was named Dairy Foods' Processor of the Year in 2025.

In-store promotional programs to drive product velocity are supported by the company's commitment to expanding its physical footprint. In the first quarter of 2025, Lifeway Foods, Inc. received commitments at key retailers for over 2,000 total incremental points of distribution across its product lines. This focus on physical availability, supported by marketing spend, is designed to translate digital interest into immediate purchase velocity at the point of sale.

Lifeway Foods, Inc. (LWAY) - Canvas Business Model: Channels

You're looking at how Lifeway Foods, Inc. gets its kefir and cheese products into customers' hands as of late 2025. The strategy is clearly focused on maximizing physical shelf space across all tiers of retail, supported by growing digital presence.

The overall financial scale of this distribution network is evident in the record performance; for the third quarter ended September 30, 2025, Lifeway Foods reported Net Sales of $57.1 million.

The physical retail footprint is extensive, covering national chains, regional players, and warehouse clubs. Here is a breakdown of the reach in key physical channels:

Channel Type	Retailer/Banner	Product Focus/Placement Detail	Unit Count/Reach
National Grocery Chains	Walmart	Farmer Cheese distribution	2,000 Stores
National Grocery Chains	Publix	Two new 8oz Lifeway Kefir items launching	Over 1,400 Stores
National Grocery Chains	Target	Expansion of three current 32oz items	Over 1,100 New Shelf Slots
National Grocery Chains	Kroger Divisions (King Soopers, Fred Meyer, Ralph's, QFC)	Farmer Cheese availability	Key regional banners
Club Stores	BJ's Wholesale Club	Two new 8oz kefir SKUs	268 Warehouse Locations

Lifeway Foods, Inc. continues to build out its presence in specialized and convenience locations:

• Drugstores (CVS): Products are set to reach consumers through CVS.
• Airport Retail Locations: Lifeway products are now available in 40 airports across the country as of May 2025.
• Regional Grocery Expansion: New 8oz organic kefir launched with a major national retailer in the past quarter, and Farmer Cheese is available in Lowes Foods stores throughout the Carolinas.

The e-commerce and digital channel is also a growing component, especially for smaller formats and online ordering. As of early 2025, Lifeway Foods products were available in:

• E-commerce and Physical Amazon Fresh stores: Products are available in 61 Amazon Fresh physical stores and through their e-commerce platform.

The performance of specific product lines within these channels shows strong velocity; for example, Lifeway Farmer Cheese reported a 63% unit increase in measured channels year-to-date as of May 2025.

Regarding food service and cafe partnerships, the data indicates expansion into universities, but specific financial or volume numbers tied to this segment are not explicitly detailed in the latest reports, though the CEO noted expansion into new channels including universities.

Lifeway Foods, Inc. (LWAY) - Canvas Business Model: Customer Segments

You're looking at the customer base for Lifeway Foods, Inc. (LWAY) as of late 2025, which is clearly segmented by health focus, product type, and geography. The company is definitely capitalizing on the gut health trend, which is the primary driver for the core customer.

Health and wellness consumers seeking functional foods represent the largest and most valuable segment, centered around the flagship Lifeway Kefir. This segment is responsible for the bulk of the company's revenue, which hit a record $57.1 million in net sales for the third quarter ended September 30, 2025. This performance marked six years of uninterrupted quarterly net sales growth.

Mass market grocery shoppers looking for cultured dairy are being captured through aggressive national retail expansion. Lifeway Foods, Inc. is securing placements across a wide array of channels, indicating a broad appeal beyond specialty stores.

• Distribution includes major chains such as Target, Whole Foods, CVS, BJ's Wholesale Club, Amazon Fresh, HEB, Hy-Vee, and Winn-Dixie.
• The Farmer Cheese line is expanding into approximately 2,000 Walmart Stores across the U.S..
• Farmer Cheese is also now available in about 1,400 Albertsons Stores.
• Sales to distributor customers represented approximately 46% of total net sales for the year ended 2024.

The revenue stream is heavily concentrated in the core product, but the other segments provide important diversification. Here's the quick math on the Q3 2025 net sales breakdown by product category, which directly maps to customer groups:

Product Category	Q3 2025 Net Sales (in millions USD)
Drinkable Kefir (excluding ProBugs)	$49.60
Cheese Segments	$4.06
Cream Segments	$2.17
Other Dairy Products (including ProBugs Kefir)	Less than $1.3

Families buying the ProBugs® line for children falls into the 'Other Dairy Products' category, which generated less than $1.3 million in net sales in Q3 2025. The company also produces a variety of cheeses and a ProBugs line for kids.

For consumers focused on high-protein, low-sugar diets, the Lifeway Farmer Cheese line is a key offering, which the company emphasizes as a high-protein, cultured dairy option. This product is showing strong traction with this specific consumer group.

• Lifeway Farmer Cheese unit sales saw a 63% increase year-to-date in measured channels as of the second quarter of 2025.
• The company also emphasizes its high-protein Lifeway Farmer Cheese alongside its flagship Kefir.

The segment of international markets is smaller but established, reaching consumers outside the primary U.S. base. Lifeway's tart and tangy fermented dairy products are sold in several countries.

• International distribution includes Mexico, Ireland, South Africa, United Arab Emirates, and France.
• Sales distributed outside the U.S. represented approximately 3% of net sales for the year ended 2024.

The company is currently executing a project to nearly double production capacity at its Waukesha facility to support this accelerating demand trajectory. Finance: draft 13-week cash view by Friday.

Lifeway Foods, Inc. (LWAY) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Lifeway Foods, Inc. moving product from the farm to the shelf. For a refrigerated, perishable goods company like Lifeway Foods, the cost structure is heavily weighted toward the physical movement and creation of the product. Honestly, it's all about managing the supply chain for fresh dairy.

The Cost of Goods Sold (COGS) is definitely a major line item. For the third quarter ended September 30, 2025, the reported COGS was $39,821 thousand. That figure represents the direct costs tied to producing the kefir and other dairy items sold during that period. To be fair, this number is directly impacted by the cost of your primary inputs, which brings us to raw materials.

Raw material costs are significant because you're dealing with a commodity that is both essential and volatile. Milk is your biggest input, and you've been dealing with pricing pressures. Back in Q1 2025, management noted headwinds from 'continued inflationary pricing in milk, our largest raw material.' To secure supply and potentially mitigate this volatility, Lifeway Foods made a strategic move in Q3 2025 by acquiring 402 mature dairy cows, investing $1,335 per cow to bolster its organic milk sourcing. Beyond milk, costs for cultures and packaging are also critical components baked into COGS.

Next up, we look at the operating expenses, specifically Selling, General & Administrative (SG&A). For the second quarter ended June 30, 2025, SG&A expenses consumed 17.6% of net sales. This percentage reflects ongoing investment in getting the brand in front of more consumers and building out the sales network. For context on recent performance and related costs, here's a quick look at key Q2 and Q3 2025 metrics:

Metric	Period	Amount (in thousands, except %)
Net Sales	Q3 2025 (3 Months Ended Sept 30)	$57,143
Cost of Goods Sold (COGS)	Q3 2025 (3 Months Ended Sept 30)	$39,821
Gross Profit Margin	Q3 2025 (3 Months Ended Sept 30)	28.7%
SG&A as % of Net Sales	Q2 2025 (2 Months Ended June 30)	17.6%

The company is making substantial, long-term investments in its physical plant to handle growth. These Capital Expenditures (CapEx) are focused on manufacturing capacity expansion, specifically at the Waukesha, Wisconsin facility. To date in 2025, Lifeway Foods has invested over $9 million into this project. The estimated total investment for this expansion is approximately $45 million in capital expenditures, with the bulk of the production capacity benefits, including more than tripling bottling speeds, expected upon completion in Q4 of 2026. The first stage of this strategic expansion was completed in September 2025.

Finally, because you're moving temperature-sensitive products, Distribution and Freight Costs are a persistent factor. While specific dollar amounts for freight aren't broken out separately in the high-level summaries, the structure of these costs is sensitive to logistics strategy. For instance, a distributor shift in late 2024 resulted in reported lower freight expense. The ongoing investment in distribution, reflected in SG&A, is necessary to support the expanding availability of Lifeway Foods products across the country, including new airport placements.

You're managing high input costs and heavy CapEx for future scale. Finance: draft 13-week cash view by Friday.

Lifeway Foods, Inc. (LWAY) - Canvas Business Model: Revenue Streams

You see the revenue streams for Lifeway Foods, Inc. (LWAY) are heavily concentrated in their core fermented dairy products, which is typical for a category leader. The primary engine here is the sale of their branded drinkable kefir. The outline suggests that the sales from this flagship product alone accounted for approximately $49.60 million in the third quarter of 2025.

Still, the growth story isn't just about the original kefir. You've got the high-protein Lifeway Farmer Cheese, which the company calls a high-growth product line, clearly pulling its weight. Also, to capture evolving consumer tastes, Lifeway Foods, Inc. is pushing sales from new functional beverages; for example, they are focusing on products like Probiotic Smoothies with Collagen to tap into adjacent wellness markets. That's how you build a moat, by innovating around your core strength.

Here's a quick look at the top-line performance from the latest reported period, which shows some serious momentum, marking six years of uninterrupted quarterly net sales growth. Honestly, stacking record quarters like this is what separates the contenders from the established players.

Revenue Metric	Period Ended September 30, 2025	Prior Year Period (2024)
Total Net Sales (Q3)	$57.143 million	$46.095 million
Total Net Sales (Nine Months)	$157.135 million	$139.886 million
Net Income (Q3)	$3.529 million	$2.976 million

The total net sales for the third quarter ended September 30, 2025, hit $57.1 million, which was a record for the company. Looking at the longer trend, the total net sales for the nine months ended September 30, 2025, reached $157.135 million. This consistent top-line performance is what you want to see from a company executing well on its distribution and product strategy.

The revenue generation is clearly segmented by product focus, which helps you track where the growth is coming from:

• Primary revenue source: Branded drinkable kefir.
• High-growth contributor: Lifeway Farmer Cheese sales.
• Emerging segment: Sales from new functional beverages.
• Specific innovation example: Probiotic Smoothies with Collagen.
• Overall Q3 Net Sales: $57.1 million.
• Nine-Month Net Sales: $157.135 million.