Lifeway Foods, Inc. (NASDAQ:LWAY) is among the most profitable consumer defensive stocks to buy now. On Wednesday, Lifeway Foods, Inc. (NASDAQ:LWAY) announced the resignation of Jody Levy from its board of directors, effective immediately. According to a statement in the SEC filing, Levy didn’t resign because of any disagreement with the company’s operations, rules, or policies. A few days ago, Lifeway Foods, Inc. (NASDAQ:LWAY) signed a multi-faceted agreement with Danone, a French food company. Under the ...

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides essential filing details for the Form 8-K, identifying the registrant and its registered securities [General Company and Filing Details](index=1&type=section&id=General%20Company%20and%20Filing%20Details) This section details the basic filing information for the Form 8-K, including the registrant, report date, and registered securities - Registrant: **LIFEWAY FOODS, INC.**[2](index=2&type=chunk) - Date of Report: **October 6, 2025**[2](index=2&type=chunk) Registered Securities | Title of each Class | Trading Symbol | Name of each exchange on which registered | | :------------------ | :------------- | :---------------------------------------- | | Common Stock | LWAY | Nasdaq Global Market | | Preferred Stock Purchase Rights | None | Nasdaq Global Market | [Item 2.02. Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) This section presents estimated third-quarter net sales and outlines cautionary statements regarding forward-looking information and associated risks [Third Quarter 2025 Estimated Net Sales](index=2&type=section&id=Third%20Quarter%202025%20Estimated%20Net%20Sales) Lifeway Foods, Inc. announced estimated unaudited net sales for Q3 2025, projecting a significant year-over-year increase Estimated Net Sales for Q3 2025 | Metric | Q3 2025 Estimated Net Sales (million USD) | YoY Increase (%) | | :-------- | :---------------------------------------- | :--------------- | | Net Sales | $55.8 - $57.0 | 21-24 | [Forward-Looking Statements and Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section includes cautionary language regarding forward-looking statements, highlighting potential risks and disclaiming any obligation to update them - Forward-looking statements are subject to various risks, including **price competition**, **customer decisions**, **competitor actions**, **commodity pricing**, **government regulation**, and **delays in new product introduction**[8](index=8&type=chunk) - The Company disclaims any obligation to update forward-looking statements, except as legally required[8](index=8&type=chunk) [Item 9.01. Financial Statements and Exhibits](index=2&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This section provides a comprehensive list of exhibits furnished with the Form 8-K, including the press release and interactive data file [Exhibits List](index=2&type=section&id=Exhibits%20List) This section lists all exhibits furnished with the Form 8-K, primarily the press release and interactive data file List of Exhibits | Exhibit No. | Description | | :------------ | :-------------------------------------------------- | | 99.1 | Press Release dated October 6, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=3&type=section&id=Signature) The report is duly signed by Eric Hanson, Chief Financial Officer of Lifeway Foods, Inc., confirming its official authorization - The report was signed by **Eric Hanson**, Chief Financial Officer of **LIFEWAY FOODS, INC.**, on **October 6, 2025**[13](index=13&type=chunk)

Core Insights - Lifeway Foods, Inc. reported estimated unaudited net sales of between $55.8 million and $57.0 million for Q3 2025, reflecting an increase of 21% to 24% year-over-year, driven by strong demand for Lifeway Kefir and the high-protein Lifeway Farmer Cheese line [1][2] Company Overview - Lifeway Foods is recognized as the leading supplier of kefir in the U.S. and has been acknowledged as one of Forbes' Best Small Companies [3] - The company offers a variety of products including drinkable kefir, cheeses, and a ProBugs line for children, with distribution across the U.S., Mexico, Ireland, South Africa, UAE, and France [3] Market Position and Growth Strategy - The CEO of Lifeway stated that kefir is a rapidly growing category in U.S. grocery, with Lifeway being the clear market leader [2] - Lifeway has expanded its product availability significantly, launching new products and increasing distribution channels, including major retailers, corner stores, airports, and universities [2] - The company is executing a project to nearly double production capacity at its Waukesha facility to support its growth trajectory [2]

Core Insights - The article discusses the most profitable consumer defensive stocks to consider for investment, emphasizing their resilience in various economic conditions [1][2] - Consumer defensive stocks are characterized by their sustainability, reliability, and lower vulnerability to economic shocks, making them attractive for investors [2] - The consumer staples sector has shown consistent performance, outperforming the MSCI World Index by an average of 5.9% [2] Methodology - A list of profitable consumer defensive stocks was compiled using Finviz stock screener, focusing on those with an EPS growth of over 15% in the last three years and an ROE of at least 5% [4] - Stocks are ranked based on the number of hedge fund holdings, utilizing data from Insider Monkey's Q2 2025 database [4] Hedge Fund Interest - The article highlights the strategy of following hedge fund stock picks, which has historically led to market outperformance, with a reported return of 373.4% since May 2014 [5] Company Highlights - **LifeVantage Corporation (NASDAQ:LFVN)**: Recently completed the acquisition of LoveBiome, enhancing its position in the microbiome health market and expanding its product offerings [6][8] - **Lifeway Foods, Inc. (NASDAQ:LWAY)**: Announced the resignation of a board member and signed a multi-faceted agreement with Danone, which includes appointing new directors and resolving litigation, aimed at improving operational clarity and stability [9][10][11]

Core Points - Danone will pause litigation against Lifeway Foods and vote in favor of the company's board as part of a new agreement, following its decision to abandon the acquisition of Lifeway [1][6] Group 1: Legal and Corporate Governance - Danone previously sued Lifeway over the issuance of new shares to CEO Julie Smolyansky, claiming it violated a long-standing agreement requiring Danone's consent [2] - Lifeway countersued, asserting that Danone's claims were invalid, while Danone holds a 22.7% stake in Lifeway [2] - The new agreement includes a truce where both companies will pause litigation against each other [2] Group 2: Board Composition Changes - Lifeway will appoint four new independent directors not affiliated with Danone or the Smolyansky family, subject to Danone's approval [3] - Two of Lifeway's longest-serving board members will resign as part of the agreement [4] - Lifeway plans to separate the roles of chairman and CEO, with Julie Smolyansky remaining as CEO and an independent director to eventually serve as chairman [4] Group 3: Future Outlook and Strategic Focus - Danone has agreed to vote in favor of Lifeway's board at the 2025 and 2026 annual meetings, amidst a proposal from Lucy and Edward Smolyansky to oust the entire board [4] - Julie Smolyansky expressed that the agreement allows for clarity and stability, focusing on delivering probiotic-rich foods and creating shareholder value [5] - Danone is still reviewing its investment in Lifeway, considering the potential sale of its shares [5]

Accessibility StatementSkip Navigation MORTON GROVE, Ill., Oct. 1, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY), a leading U.S. supplier of kefir and fermented probiotic products, announced today its second drink with LA-based organic grocer and cafe, Erewhon Market, to serve up the new, limited-edition Love Your Gut Pumpkin Spice Smoothie featuring Lifeway Organic Plain Kefir. Continue Reading Lifeway Love Your Gut Smoothie at Erewhon, photo courtesy of Erewhon Blending trending autumn flavors ...

Core Viewpoint - Lifeway Foods has entered into a Cooperation Agreement with Danone North America, which includes a board refreshment plan and a stay on pending litigation related to the Stockholders' Agreement, aimed at maximizing shareholder value and ensuring good governance practices [1][3][4]. Board Refreshment - Lifeway will appoint three independent directors by October 30, 2025, and one additional independent director by November 14, 2025, selected by the Board's Strategic Review Committee [4]. - The roles of Chair and CEO will be separated by the earlier of October 30, 2025, or the appointment of the third new independent director, with an independent director appointed as Chair [4]. - Current board members Pol Sikar and Jay Scher will step down by the 2025 and 2026 annual meetings, respectively [4]. Litigation and Stockholders' Agreement - Lifeway and Danone have agreed to jointly stay pending litigation related to the Stockholders' Agreement [4]. - Lifeway will comply with the Stockholders' Agreement without contesting its validity, while Danone waives certain rights under the agreement, including the right to appoint a board member [4]. Future Solicitations and Compensation - Danone will support the Board's recommendations regarding board composition and organizational documents if a special meeting or consent solicitation is called by Edward or Ludmila Smolyansky before June 30, 2026 [4]. - Lifeway's Compensation Committee is permitted to issue equity-based compensation to management, excluding Julie Smolyansky and her relatives, to attract and retain talent [4]. Capital Allocation and Growth - Lifeway is evaluating capital allocation alternatives to maximize shareholder value in light of the changes from the Cooperation Agreement [3]. - Julie Smolyansky, CEO, emphasized the importance of resilience, innovation, and community in moving forward with the agreement to enhance growth and shareholder value [5].

Core Viewpoint - Danone has decided to abandon its pursuit of acquiring Lifeway Foods and is now exploring options regarding its investment in the US kefir maker [1][2] Group 1: Acquisition Attempts - Danone and Lifeway signed a Non-Disclosure Agreement (NDA) to evaluate a potential bid after two previous offers were rejected [1] - The initial acquisition proposal was made in September 2024 at $25 per share, which was later increased to $27 [2] - Lifeway rejected both offers, stating they undervalued the company [3] Group 2: Legal and Governance Issues - Danone filed a lawsuit against Lifeway, alleging a breach of a shareholder agreement, while Lifeway characterized Danone's offers as a "hostile takeover" [3] - A family dispute within Lifeway has intensified, with the company's chair and CEO facing opposition from her family members, who are also major shareholders [4] - The mother-son duo of Ludmila and Edward Smolyansky submitted a statement to the SEC seeking to replace Lifeway's board, including the CEO [4] Group 3: Financial Performance - Lifeway reported 22 consecutive quarters of growth, with second-quarter net sales reaching $53.9 million, an 18% increase year-over-year on a comparable basis [5] - In the first two months of Q3, Lifeway experienced a 20% growth in unaudited net sales, totaling $39.1 million [5]

Core Viewpoint - Lifeway Foods experienced a significant decline of 25% in premarket trading following Danone SA's decision to withdraw its acquisition offer for the company [2]. Group 1 - Danone SA announced on Wednesday that it would no longer pursue the acquisition of Lifeway Foods [2].

Core Viewpoint - Lifeway Foods shares experienced a significant decline of 25% in premarket trading following Danone's withdrawal of its acquisition proposal for the company [2] Company Summary - Lifeway Foods specializes in supplying kefir and fermented probiotic products [2] - The acquisition proposal from Danone was made in 2024 [2] Industry Summary - The withdrawal of the acquisition proposal may indicate challenges in the market for probiotic products or potential strategic shifts within larger food companies like Danone [2]