Lifeway Foods reports double-digit sales growth for Q1 2014
Lifeway Kefir, ProBugs Organic Kefir for kids and BioKefir brands contribute to gross sales increase
Kefir manufacturer Lifeway Foods Inc., Morton Grove, Ill., announced positive results for the first quarter ending March 31. Gross sales for the company increased approximately 16 percent to $32.1 million, compared with $27.6 million for the prior-year period. The company primarily attributes this growth to increased sales and awareness of its flagship Lifeway Kefir brand as well as its ProBugs Organic Kefir for kids and BioKefir brands.
Likewise, total consolidated net sales for the company increased approximately 20 percent to $29.1 million, compared with $24.4 million in the prior-year period. Net sales are recorded as gross sales less promotional activities, such as slotting fees paid, couponing, spoilage, and promotional allowances as well as early payment terms given to customers. The total allowance for promotions and discounts in the first quarter of 2014 was approximately $2.9 million or 9 percent of gross sales. compared with $3.2 million or approximately 12 percent of gross sales in the prior-year period.