Lifeway (LWAY)

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FDA complaint closes 2 Lifeway lines
By Mike Hughlett | Tribune reporter May 16, 2008

Citing a lack of compliance with food safety laws, the Food and Drug Administration on Thursday announced the shutdown of the cream cheese and seafood operations of Morton Grove-based Lifeway Foods Inc.

In a complaint filed with Justice Department, the FDA alleges Lifeway inadequately labeled cream cheese products, including not disclosing major food allergens; produced seafood-based cream cheese without an adequate safety plan; and failed to document that it had monitored certain sanitation conditions.

In the wake of a consent decree between the FDA and top company executives, cream cheese and seafood production was halted at plants in Skokie and Philadelphia, the FDA said.

But Edward Smolyansky, Lifeway's chief financial officer, said the company hasn't produced cream cheese at its Skokie plant for some time. And while cream cheese production is shut down in Philadelphia, that plant is producing other items, he said.

Publicly traded Lifeway is a leading producer of a drinkable yogurt called kefir. Smolyansky said cream cheese accounts for 0.5 percent to 1 percent of the company' sales, which totaled $38.7 million in 2007.

Smolyansky said problems cited by the FDA have been corrected, and the company is waiting for approval to restart cream cheese and seafood operations.

In a news release, the FDA said its action follows Lifeway's "extensive history of violations of the Federal Food, Drug and Cosmetic Act dating back to at least 2004." Smolyansky said the agency was referring only to its cream cheese operations.

"This stems from years of negotiation between the FDA and ourselves," he said. "That's it, and we move on."


http://www.chicagotribune.com/business/chi-fri-lifeway-may16,0,7901208.story