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Lifeway Kefir Gains New Distribution on Both Coasts With Ralph's and ACME Chains

Posted on: Tuesday, 24 October 2006, 18:01 CDT

MORTON GROVE, Ill., Oct. 24 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc. , the nation's leading kefir manufacturer, announced that 4 flavors of Lowfat Kefir will now be distributed to both Ralph's Grocery stores, owned by Kroger, which operates 280 stores in Southern California and ACME Grocery, which operates about 130 stores in the Philadelphia and tri- state area, and is owned by Albertson's. Shipments of kefir will begin this week and it is expected both chains will also stock ProBugs, Lifeway's new organic children's kefir, at select locations before the end of the year or early January. Expanded demo, marketing and advertising in both markets is being coordinated to support sales at both chains.

"We are incredibly excited that Lifeway Kefir continues to gain acceptance in the mass market grocery chains," exclaimed Julie Smolyansky, Lifeway Foods' President and CEO. Smolyansky also added, "Our acceptance at ACME in the Philadelphia and tri-state areas shows that our investment into that market has paid off. Our acceptance into Ralph's is equally exciting as in the past the west coast grocery chains have been highly competitive and costly for Lifeway. Having 2 major grocery chains carry Lifeway Kefir within the same week is another sign that probiotics and kefir are a legitimate category, and are at the top of mind for consumers and grocers alike."

Ralph's has been the leading Grocery retailer in Southern California for over 125 years and was recently voted the #1 Grocery Chain in Orange County in customer satisfaction for 2006. Ralph's also plans to open 5-10 new locations in 2007. ACME operates about 130 stores in the Philadelphia and tri-state areas.

Lifeway, recently named Fortune Small Business' 94th Fastest Growing Small Business for the third straight year, is America's leading supplier of the cultured dairy product known as kefir. Lifeway offers 12 different flavors of its Kefir beverage, Organic Kefir and SoyTreat (a soy based kefir). Lifeway also produces a line of products marketed in U.S. Hispanic communities, called La Fruta Drinkable Yogurt (yogurt drinks distinct from kefir). In addition to its line of Kefir products, the company produces a variety of cheese products and recently introduced a line of organic pudding called It's Pudding.

For more information, contact Lifeway Foods, Inc. at (847) 967-1010 or e-mail at info@lifeway.net and visit http://www.lifeway.net/ .

This news release contains forward-looking statements. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, competitive pressures and other important factors detailed in the Company's reports filed with the Securities and Exchange Commission.

Lifeway Foods, Inc.

CONTACT: Lifeway Foods, Inc., +1-847-967-1010, info@lifeway.net

Web site: http://www.lifeway.net/


Source: PRNewswire-FirstCall

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