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Lifeway Foods, Inc. Initiates National Marketing Campaign.

MORTON GROVE, Ill.--(BUSINESS WIRE)--March 2, 1999--Lifeway Foods, Inc. (NASDAQ Small Cap:LWAY) today announced the kick-off of its first ever National Marketing program to begin on March 15, 1999. The program is designed to increase visibility of Lifeway's products and secure a strong presence with consumers. The Company has expanded its management team to include positions of Director of Sales and Marketing as well as National Sales Manager to implement the advertising campaign and promote awareness of Lifeway's nutritional food products throughout the country.

The Company has prepared an ambitious program which includes traditional advertising in national print, radio, and cable TV. In addition, Lifeway's marketing strategy includes entering the increasingly popular mode of internet publicity using health related web sites and featuring point-of-purchase materials and product sampling in major health food stores. To further maximize publicity, the Company has signed a contract with a leading product placement firm for the entertainment industry to have a variety of products appear in both television shows and big screen movies.

The ultimate goal of Lifeway's marketing campaign is to move its products from niche to mainstream. "Until now Lifeway has relied on word-of-mouth alone to move our products, and it has been successful but we're ready to explode our presence," explains Marketing Director Julie Smolyansky. "There is a growing demand for health food products and this demand will extend to the nutraceutical and functional foods market."

Michael Smolyansky, President and CEO, commented, "We are extremely confident about the potential growth of revenues and profits resulting from our first marketing campaign. Our high-energy management team will help us capitalize on the roll-out of our new products and the increasing interest in nutritional foods. After our expansion and start up of our new plant we have the available capacity to supply our customers on a national basis and have distribution outlets throughout the country. Lifeway is ready and committed to maximize sales opportunities in the rapidly growing market for health foods."

Lifeway is America's leading supplier of the fermented dairy beverage known as kefir. The Company markets 12 flavors of kefir and also does a brisk business exporting kefir to Eastern Europe. The Company recently introduced a revolutionary nutritional food product called Basics Plus and the market's first non-fat and fat-free farmer's cheese as well as Kefir Starter, a dry powder for consumers to make kefir at home or in travel. Lifeway also marketes several varieties of drinkable yogurts, as well as a low-sodium, vegetable seasoning called Golden Zesta. The Company recently launched a low-fat cream cheese substitute, "Elita," and has a number of exciting new products in development.

For more information, contact Michael Smolyansky, President, Lifeway Foods, Inc. at (847) 967-1010 or e-mail at or visit

Except for historical information, matters discussed in this press release are forward-looking statements that involve risk and uncertainties, including, but not limited to, risks associated with entering new markets, consumer acceptance, regulation of dietary supplements, competitive pressures and other important factors detailed in the Company's annual report on Form 10-K for fiscal 1997 filed with the Securities and Exchange Commission.
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Publication:Business Wire
Date:Mar 2, 1999
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