Lifeway Foods Inc., Morton Grove, Ill., announced results for the second quarter, which ended June 30. Total consolidated net sales increased 28 percent to $29.6 million during the three-month period from $23.1 million during the same three-month period in 2013. This increase is primarily attributable to increased sales and awareness of the company’s flagship Kefir line as well as its ProBugs Organic Kefir for kids and BioKefir lines.
Although cow’s milk has long been associated with good health, it has experienced gradual sales declines in the past two years as prices fluctuated and consumers avoided fat, calories and added sugars, according to Chicago-based Mintel’s April 2014 report “Milk, Creamers and Non-Dairy Milk – US.”
According to Chicago-based Mintel’s April 2013 report “Dairy and Non-dairy Milk – US,” the “other milk” segment, which includes ready-to-drink milk or milk substitutes, refrigerated kefir/milk substitutes/soy milk, and refrigerated milkshakes/non-dairy drinks, makes up 7.3 percent of the total U.S. dairy and non-dairy milk market. This represents a more than 30 percent increase in market share since 2010, it reports. Mintel also predicts that this category will continue to see growth through 2017 to reach nearly $2.9 billion in sales.
Dairy alternative drinks are becoming so mainstream that they might soon deserve their own name, says David Sprinkle, research director and publisher of Packaged Facts, Rockville, Md.
In 1999, the U.S. Food and Drug Administration (FDA) approved a health claim allowing soymilk manufacturers to state that consuming 25 grams of soy protein in a diet that is low in saturated fat and cholesterol can reduce the risk of coronary heart disease, says Virginia Lee, senior research analyst at Chicago-based Euromonitor International. This claim boosted the popularity of soymilk, and it continues to be the most popular dairy alternative beverage today, she says. However, the research firm estimates that sales of soymilk declined 5.8 percent from $981 million in 2009 to $924 million in 2010, and another 8.5 percent in 2010 reaching $846 million in 2011.
Allen Flavors Inc., Edison, N.J., was founded in 1990. The company started as a one-room, two-person operation. Since then, the company has evolved into one of the largest privately held suppliers of flavor to the beverage industry.
Sunrich Naturals, a brand of SunOpta Inc., introduced Sōl, a dairy alternative beverage made from roasted sunflower kernels. The dairy-free, gluten-free, all-natural beverage contains antioxidants, vitamins and minerals that promote heart and brain health, strengthen bones and teeth, and helps maintain youthful-looking skin, in addition to folic acid to support prenatal health, the company says.