# Lifeway Sees Waukesha Bottling Speed More Than Doubling in Q1 2027

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/56227
Published: 2026-11-13T03:23:34.000Z
Updated: 2026-11-13T03:23:34.000Z
Section: Business

> Third-quarter net sales set a company record at $67.8 million, while gross margin was 18% amid pressure from milk, packaging and freight costs.

Lifeway Foods, Inc. expects bottling speed at its Waukesha plant to more than double in the first quarter of 2027, a ramp management expects to ease supply constraints as demand outpaces production.

The company is allocating supply because current output does not meet demand. Capacity increases are expected to start coming online in January 2027, with most scheduled for February. Management expects the added capacity to ease the production constraints.

Third-quarter net sales reached a company record of $67.8 million, extending Lifeway's streak of year-over-year quarterly growth to 28 consecutive quarters. Strong demand across kefir and farmers cheese contributed to the growth. CEO Julie Smolyansky said, “Third quarter net sales reached $67.8 million, the highest quarterly net sales in our company's history.”

Gross margin was 18% in the third quarter as milk, packaging and freight costs weighed on the measure. Lifeway expects fourth-quarter gross margin to land between second- and third-quarter levels. Management believes pricing actions, stabilizing milk costs and Waukesha efficiencies can help lift the margin above 25%.

As capacity expands, the company sees opportunities in broader retailer offerings, new accounts and product innovation. The capacity rollout is expected to begin in January 2027, with most additions coming online in February.