Entrepreneur and founder of Lucy’s Organics, Edward Smolyansky has entered into an agreement to acquire the assets, including the plant and equipment, of the former Saputo plant in Lancaster, Wisconsin.
The plant recently closed following the start-up of a converted goat cheese manufacturing facility in Reedsburg, Wisconsin, Saputo.
The acquisition forms part of Smolyansky’s plan to meet the “growing market demand” for fermented milk drink kefir and plant-based alternatives.
Smolyansky is currently engaged in a campaign at Lifeway Foods. He also recently launched a new venture, Pure Culture Organics, a wholly-owned subsidiary of Lucy’s Organics, Inc.
Future plans
Smolyansky plans to retrofit the 100,000-square-foot facility for kefir production, with operations expected to start in 2025.
The facility can process approximately one million pounds of fluid milk per day, with the potential to scale capacity.
The entrepreneur also intends to fully segregate part of the facility to produce an alternative kefir beverage derived from almonds and cashews.
“There doesn’t appear to be a non-dairy based kefir product in the United States right now, so several retailers have approached me about filling that void with a nut-based probiotic drink,” Smolyansky said.
“This facility’s unique footprint and capabilities should allow us to produce both products without the risk of allergy cross-contamination, a common issue in food processing plants,” he added.
Former Saputo plant
The plant already has an advanced on-site wastewater treatment and methane capture system.
The plant can process up to 120,000 gallons of wastewater per day, converting dairy waste into biomass and capturing up to 93,500 cubic feet of methane gas daily, which is then returned to the local energy grid.
The plant’s capacity to scale up wastewater treatment as production increases offers further operational benefits.
“As the probiotic dairy market continues to grow post-pandemic, this plant will enable us to better meet increasing demand with efficient, large-scale production,” Smolyansky said.
“It’s a prime example of how smart investment and innovation can drive sustainability while reducing costs,” he added.
Lucy’s Organics has also entered into a partnership agreement with Super Natural Foods, which is a privately held trading firm specialising in alternative assets and advisory services.
The partnership will involve marketing and support for this initiative, as well as upcoming collaborative projects and opportunities.
