Dutch Trader
Deep value, special situations, contrarian, long only

An American Probiotic Stock That Could Become An Acquisition Target

Background

Now that PepsiCo (NYSE:PEP) and German dairy giant Muller opened their US yogurt plant this week, investors could become interested in buying shares of Lifeway Foods (NASDAQ:LWAY).

Demand for yogurt has increased in recent years, per capita consumption is relatively low and the new venture Muller Quaker Dairy believe they can benefit. However, the new facility has added to the already increasing capacity in the sector, which is now seeing only sales of Greek yogurt grow and an intensification in promotional activity.

Demand for yogurt in the US has jumped in recent years, buoyed by increased interest in healthier products and the success of manufacturers to convince consumers of the health attributes of the...

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