CHICAGO — Lucy’s Organics, Inc., announced it entered an agreement to acquire the former Saputo dairy plant in Belmont, Wisconsin.

The company makes kefir under its wholly owned subsidiary, Pure Culture Organics, and it plans to use the facility to produce kefir and plant-based alternatives. Terms of the deal were not made available.

Over the course of the past year, Saputo decided to close the Belmont operation and other facilities in the United States. Lucy’s Organics founder Edward Smolyansky said his company is acquiring the plant and its equipment.

Smolyansky shared that his plans for the 100,000-square-foot facility call for retrofitting it to produce kefir, with the expectation that the plant can process approximately 1 million pounds of fluid milk per day, with the potential to scale capacity. He said operations are expected to commence in 2025.

“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.”

In announcing the acquisition and plans, Smolyansky also shared he is engaged in a proxy campaign at Lifeway Foods, where he is a shareholder. He said if the proxy campaign is successful, he plans to present the Belmont facility for independent review by a reconstituted Lifeway board of directors. “Alternatively, Pure Culture Organics may use the facility as its first kefir production site,” the announcement stated.

As reported by Just Foods, Edward Smolyansky and his mother, Ludmila Smolyansky, are the largest investors in Lifeway and have been in a number of legal battles with the company and its chief executive officer, Julie Smolyansky – sister and daughter, respectively, of Edward and Ludmila.

At the Belmont facility, Edward Smolyansky said he plans to utilize a dedicated space to produce alternative kefir beverages made with almonds and cashews. He said a lack of non-dairy kefir products in the US have led retailers to seek out nut-based probiotic drinks.

“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 said.

The Lucy’s Organics founder, who is co-founder and president for Pure Culture Organics, said the facility includes an advanced wastewater treatment and methane capture system. The technology allows the plant to 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. Those sustainable energy solutions, he added, “significantly” reduce waste disposal costs.