Lifeway Foods expands Farmer Cheese distribution to 1,400 Albertsons stores

Lifeway Foods, Inc. (NASDAQ: LWAY), a leading U.S. supplier of kefir and fermented probiotic dairy products, has significantly expanded its footprint by securing nationwide distribution of Lifeway Farmer Cheese in 1,400 Albertsons stores across the United States. This strategic expansion aligns with the company’s broader mission to provide consumers with high-protein, gut-health-supporting dairy alternatives. The deal reinforces Lifeway’s growing presence in the probiotic dairy products market, further diversifying its portfolio beyond kefir while capitalizing on the increasing demand for functional dairy foods.

What Makes Lifeway Farmer Cheese a Unique Probiotic Dairy Alternative?

Lifeway Farmer Cheese is a cultured soft cheese crafted using Lifeway Foods’ small-batch artisanal recipe, offering a smooth texture akin to blended cottage cheese while maintaining the spreadability of cream cheese. Unlike conventional dairy products, it delivers both high protein and probiotic benefits, making it an attractive option for consumers prioritizing gut health, high-protein intake, and clean-label nutrition.

Each serving of Lifeway Farmer Cheese contains 12 live and active probiotic cultures, 15 grams of protein, and bioavailable nutrients. The cheese is formulated to be up to 99% lactose-free, gluten-free, and free from added salt, making it a lower-sodium alternative to traditional cottage cheese varieties. With rising consumer interest in fermented dairy products, Lifeway is positioning itself as a leader in functional, probiotic-rich cheese alternatives.

Why Is the Demand for Probiotic Dairy Products Increasing?

The demand for probiotic dairy products has surged in recent years, driven by increased consumer awareness of gut health, microbiome balance, and the benefits of fermented foods. Probiotic dairy alternatives, such as Lifeway Farmer Cheese, cater to health-conscious consumers looking for digestive-friendly, high-protein foods that fit into lactose-intolerant and clean-eating lifestyles.

According to industry reports, the global probiotic dairy market is experiencing steady growth, with a rising number of consumers seeking natural, minimally processed options to support overall wellness. Lifeway Foods, long recognized for its probiotic kefir beverages, has effectively leveraged this trend by expanding into adjacent dairy categories, ensuring broader accessibility to functional dairy products.

How Does the Albertsons Expansion Impact Lifeway Foods?

The addition of 1,400 Albertsons locations to Lifeway’s retail network represents a major milestone for the brand, increasing the market penetration of Lifeway Farmer Cheese beyond specialty stores into one of the largest supermarket chains in the U.S. This move strengthens Lifeway’s position as a leading provider of high-protein, probiotic dairy alternatives, allowing the brand to compete more aggressively in the expanding functional dairy sector.

Lifeway President and CEO Julie Smolyansky highlighted the significance of this expansion, citing the growing consumer shift toward high-protein, probiotic-rich foods and the role of social media influencers and viral trends in driving demand.

“Consumer interest in high-protein, gut-health-supporting dairy products continues to rise, and we are thrilled to bring our probiotic Farmer Cheese to Albertsons shelves nationwide,” said Smolyansky. “This product has been a core part of Lifeway since our inception, and its increasing popularity reflects its unique texture, great taste, and impressive nutritional profile. The endorsement from well-known figures like Bethenny Frankel and the surge of viral blended cottage cheese recipes have further amplified its reach.”

What Does This Expansion Mean for Lifeway’s Business Growth?

Lifeway Foods has consistently demonstrated its ability to identify emerging consumer trends and capitalize on strategic growth opportunities. The introduction of Lifeway Farmer Cheese into Albertsons’ extensive retail network marks another step forward in the company’s expansion strategy, reinforcing its role as a key player in the fermented dairy market.

Beyond the immediate sales boost, the move enhances Lifeway’s brand visibility in the mainstream retail sector, positioning Lifeway Farmer Cheese as a staple in the high-protein cheese category. This aligns with the company’s broader vision of expanding its probiotic product offerings, ensuring continued market relevance amid evolving dietary preferences.

Lifeway Foods Secures $5 Million Net Gain from Simple Mills Sale

In a separate financial development, Lifeway Foods announced that it expects to realize a $5 million net gain from the recent sale of Simple Mills to Flowers Foods. Lifeway initially invested in Simple Mills in 2015, recognizing its potential as a rising clean-label food brand. The company had already secured a $1.5 million gain in 2019, bringing the total projected proceeds from the investment to approximately $6.5 million.

CEO Julie Smolyansky praised the success of Simple Mills CEO Katlin Smith and emphasized the strategic foresight behind Lifeway’s early investment decision.

“We congratulate Katlin Smith and the Simple Mills team on this successful acquisition by Flowers Foods,” said Smolyansky. “When we made our initial investment, we recognized the brand’s strong growth potential, and we are pleased that this decision is now delivering value for our shareholders.”

The Flowers Foods-Simple Mills acquisition, valued at $795 million, is expected to close in the first quarter of 2025, pending regulatory approval.

What’s Next for Lifeway Foods?

As Lifeway Foods continues its aggressive expansion strategy, the brand remains focused on scaling its probiotic product portfolio and capitalizing on rising consumer demand for functional dairy products. The Albertsons distribution deal and Simple Mills investment return highlight the company’s strong market positioning, financial agility, and long-term growth vision.

With a probiotic dairy market projected to expand further, Lifeway Foods is well-positioned to maintain its leadership in the high-protein, gut-health-focused dairy segment, catering to a growing audience of health-conscious consumers.