Edward Smolyansky acquires former Saputo plant for non-dairy kefir production

USA – Edward Smolyansky, a major shareholder in Lifeway Foods, a leading U.S. supplier of kefir and fermented probiotic products, has acquired a former Saputo dairy plant in Belmont, Wisconsin, amidst ongoing tensions within the Company. 

Smolyansky, along with his mother Ludmila, is actively engaged in a proxy campaign to unseat the current board of directors, including CEO Julie Smolyansky, Edward’s sister.

The 100,000-square-foot facility, which will be repurposed for kefir production, is expected to begin operations in 2025. 

The plant has the capacity to process approximately one million pounds of fluid milk daily and will also produce an alternative kefir beverage made from almonds and cashews. 

Smolyansky highlighted the gap in the US market for non-dairy kefir products, noting that several retailers have expressed interest in a nut-based probiotic drink.

“This facility’s unique footprint and capabilities should allow us to produce both dairy and non-dairy products while minimizing the risk of allergy cross-contamination,” Smolyansky said . 

He sees the plant as a strategic asset that will enable Pure Culture Organics, his new venture, to meet the increasing demand for probiotic products and drive sustainable, large-scale production.

The plant, which was previously owned by Canadian dairy giant Saputo, was shut down late last year as part of a broader strategy to streamline its US manufacturing network. 

Smolyansky views this acquisition as a prime example of how targeted investment can enhance production capabilities and reduce costs while advancing innovation in the probiotic dairy market.

Lifeway Foods, founded by Michael Smolyansky in 1986 and initially managed with support from his wife Ludmila, has been embroiled in internal conflicts since Michael’s death in 2002. 

Julie and Edward Smolyansky took over leadership roles, with Julie serving as CEO and Edward as COO. 

However, tensions escalated in March 2022 when Ludmila and Edward, who together own nearly 30% of Lifeway, called for Julie to step down and urged the company to explore strategic alternatives.

The dispute led to Lifeway agreeing to review its strategic options and seek new board members. Despite this, the family feud has continued, culminating in Edward’s establishment of Pure Culture Organics. 

This new venture sparked a legal dispute with Lifeway, which accused Pure Culture Organics of misappropriating proprietary information to set up the business. 

The lawsuit was resolved in June, but the conflict between the Smolyanskys remains a significant factor in the ongoing corporate drama.

Smolyansky’s acquisition of the Belmont plant reflects his commitment to capitalizing on the growing demand for probiotic products. 

He believes that the facility’s advanced capabilities will position Pure Culture Organics for success and enable it to address market needs effectively. 

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