LIFEWAY FOODS (LWAY) Message Board

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Non-Tech : LIFEWAY FOODS (LWAY)

LWAY 21.92

-1.0%

12:49 PM EST

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To: Steve Cox who wrote (229)	5/28/1998 11:27:00 AM
From: mark cox	Read Replies (2) of 352

The following is from a post on the Yahoo thread from a guy who went to the shareholder's meeting. Yes, I went to the meeting. A rather modest affair but it did provide some valuable information and a free bottle of BasicsPlus. Key learnings were as follows: - LWAY will be selling the resturant for a healthy profit. Currently they are just negotiating on who will do demolition. They anticipate gross proceeds of $1.4 to $1.5MM and net of about $700 to $800M. When pressed about the poor performance, Mike responded that the club was only loosing money on paper but from a cash flow standpoint, it was OK. In addition, the value of the property has increased about $100M per year over the last five years. - No new products planned with GGEN. If any were to come it would be GGEN that would do the R&D. - Watch for 8 oz. single serving sizes of BasicsPlus and Kefir within the next few months. Considerable interest from hospitals for the single servings sizes of BasicsPlus. - LWAY is developing a new higher margin Kefir culture product that will be distributed in packets. A key market will be Japan and other Asian markets (there is supposed high interest) due to their limited shelf space and their cultures 90% lactose intollerance problem. - Mike still has an aversion to marketing although he has added tow billboards on I-294 in Chicago. He still believes word of mouth is the best advertising. - I asked Mike what his expectations were for sales growth over the next few years on his existing products and his response was about 25-30%. Thats about all I recall without looking back at my notes. This is good news about the selling of the restaurant. The single serving sizes I have mentioned before and should have slightly higher margins than the regular products. I hope that they can find their way into vending machines eventually. There are so many things going on a LWAY right now. There is a lot of potential here. Mark ÿ

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