MORTON GROVE, Ill., March 4, 2025 /PRNewswire/ -- Lifeway Foods, Inc. (NASDAQ: LWAY) ("Lifeway" or the "Company"), a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, issued the following statement regarding most recent predatory actions by Danone (OTCQX: DANOY):Danone has continued its hostile behavior in its latest Schedule 13D filed with the Securities and Exchange Commission referencing a lawsuit against Lifeway.  This is the latest aggressive action in Danone's ...

Core Insights - Lifeway Foods, Inc. is promoting awareness of new gut health research linking long-term consumption of fermented milk to a reduced risk of colorectal cancer [1][2] - The company’s President and CEO, Julie Smolyansky, will discuss these findings at the SXSW conference alongside journalist Katie Couric [1][2] Company Overview - Lifeway Foods is a leading U.S. supplier of kefir and fermented probiotic products, emphasizing the health benefits of their offerings [1][4] - The company aims to enable healthier living through high-quality fermented milk products rich in bioavailable nutrients [4] Research Findings - A recent study from Mass General Brigham indicates that individuals consuming two or more servings of fermented dairy weekly experienced a 20% reduction in colorectal cancer incidence associated with Bifidobacterium [2][3] - The study followed participants for over three decades, reinforcing the belief that yogurt and fermented milk products are beneficial for gastrointestinal health [3] Product Information - Lifeway Kefir contains 12 live and active cultures, and is rich in protein, calcium, and vitamin D, designed to support overall wellness and maintain a healthy gut flora balance [4]

Company Overview - Lifeway Foods, Inc. is recognized as America's leading supplier of probiotic fermented beverages, specifically kefir, and has been listed among Forbes' Best Small Companies [3] - The company produces a variety of products including drinkable kefir, cheeses, and a ProBugs line for children, with its products sold in multiple countries including the U.S., Mexico, and France [3] Product Innovation - Lifeway is focused on crafting products that meet consumer demands, particularly in the growing interest in kefir linked to health benefits such as reduced incidence of certain colorectal cancers [2] - The company is introducing new offerings that incorporate on-trend ingredients and unique flavor combinations aimed at appealing to Gen Z and Millennial consumers [2] Market Engagement - Lifeway will showcase its products at Expo West, providing samples of new probiotic items and creative recipes, highlighting the versatility and nutritional benefits of its offerings [1][2] - The company aims to connect with food lovers, retailers, and health enthusiasts at the event, emphasizing its commitment to better-for-you foods [2]

Core Insights - Lifeway Foods, Inc. is expanding its distribution of Farmer Cheese to 1,400 Albertsons stores across the U.S., aiming to reach new audiences and enhance its market presence [1][3] - The Farmer Cheese product is a premium cultured soft cheese that offers 15g of protein per serving, is made with 12 live probiotics, and is up to 99% lactose-free, catering to the growing demand for high-protein and probiotic foods [2][3] Company Overview - Lifeway Foods, Inc. is recognized as a leading supplier of kefir and fermented probiotic products in the U.S., with a diverse product line that includes drinkable kefir and various cheeses [5] - The company has been acknowledged as one of Forbes' Best Small Companies and has a significant presence in international markets, including Mexico, Ireland, South Africa, the UAE, and France [5] Market Context - The demand for high-protein and probiotic foods is increasing, with Lifeway's Farmer Cheese gaining popularity due to its flavor and health benefits, supported by endorsements from social media influencers [3] - Albertsons Companies operates 2,273 retail food and drug stores across 34 states, providing a substantial platform for Lifeway's products to reach consumers [6]

Core Viewpoint - The Smolyanskys, who control approximately 28% of Lifeway Foods' shares, are calling for the resignation of CEO Julie Smolyansky following her lawsuit against Edward Smolyansky, the largest individual shareholder [1][2][3]. Group 1: Shareholder Actions - The Smolyanskys have requested Lifeway's Board to compel CEO Julie Smolyansky to withdraw her lawsuit against Edward Smolyansky [1]. - They believe the recent $2 million retention bonus awarded to Julie Smolyansky is a tactic to fund her legal battles against the Founding Shareholders [2]. - The Smolyanskys are expanding their investigation into the company's governance, which has seen significant turnover in key positions since 2018 [2]. Group 2: Legal and Financial Context - Edward Smolyansky criticized the company's increasing litigation, stating it reflects poor governance [3]. - Ludmila Smolyansky indicated that the $2 million payment to Julie was anticipated to lead to legal action against Edward [3]. - The Smolyanskys have expressed concerns about the board's obstruction of their ability to monetize their shares and contribute to charitable causes [3]. Group 3: Future Goals - The Smolyanskys aim to achieve new management and an independent slate of directors to improve the company's governance [4]. - They have highlighted their commitment to philanthropy, despite perceived interference from the current board [4].

Core Insights - Lifeway Foods, Inc. is set to ring the closing bell at Nasdaq on February 3, 2025, coinciding with the announcement of record net sales projections for Q4 2024 and the full year 2024 [1][2] - The company anticipates Q4 2024 net sales between $45.1 million and $46.6 million, and full year 2024 net sales projected between $185.0 million and $186.5 million, representing a significant increase from $160.1 million in 2023 [1][2] - This marks the twenty-first consecutive fiscal quarter of year-over-year topline growth for Lifeway Foods [2] Company Performance - Lifeway Foods has built a strong brand over nearly four decades by producing popular healthy products and contributing to community initiatives [2][3] - The company has mobilized resources to support communities affected by recent wildfires in Los Angeles, demonstrating its commitment to social responsibility [2] - Lifeway's growth reflects its dedication to high-quality, nutritious products and its ability to adapt in a competitive market [3] Product Offerings - Lifeway Foods is recognized as America's leading supplier of kefir, a probiotic fermented beverage, and also produces a variety of cheeses and a ProBugs line for children [4] - The company's products are sold across multiple countries, including the United States, Mexico, Ireland, South Africa, the United Arab Emirates, and France [4]

Company Overview - Lifeway Foods is a leading US supplier of kefir and fermented probiotic products, recognized as one of Forbes' Best Small Companies [6] - The company produces drinkable kefir, cheeses, and a ProBugs line for kids, with products sold in the US, Mexico, Ireland, South Africa, UAE, and France [6] Financial Performance - Lifeway's 2024 net sales are projected to range between $185.0 million to $186.5 million, up from $160.1 million in 2023 [3][8] - Preliminary unaudited Q4 2024 net sales are estimated between $45.1 million to $46.6 million [8] - The company has achieved 21 consecutive quarters of growth through Q4 2024 [5] - Lifeway delivered double-digit year-over-year revenue growth in Q3 2024 [5] - Total shareholder returns reached 788% over the past five years and 270% over the past three years as of September 23, 2024 [5] Acquisition Proposal - Lifeway's Board rejected Danone's acquisition offer, stating it severely undervalued the company based on independent financial and legal analysis [1] - The Board is open to a sale at a price that accurately reflects the company's true value [1] - Lifeway claims the 1999 Stockholders agreement with Danone violates Illinois law and intends to pursue legal remedies to nullify it [2] Leadership and Strategy - CEO Julie Smolyansky has led the company through a period of significant growth and success [5] - The Board believes Smolyansky's continued leadership is critical to the success of the company's standalone business plan [5] - Lifeway is assessing its relationship with Danone and exploring ways to protect the company's and shareholders' interests [4]

Core Insights - Lifeway Foods, Inc. is expanding the distribution of its ProBugs Organic Kefir for kids to over 250 Harris Teeter retail stores, featuring flavors like Strawnana and Goo-berry in single-serve pouches [1][3] - The ProBugs kefir is made with organic whole milk and contains 12 live and active probiotic cultures, designed for children with a focus on convenience and fun [2][3] - The U.S. kids and infant probiotic market is projected to reach $370.89 million by 2032, growing at a CAGR of 9.1% [3] Company Overview - Lifeway Foods, Inc. is recognized as a leading supplier of kefir and fermented probiotic products, also producing a variety of cheeses and the ProBugs line for kids [5] - The company has a presence in multiple countries, including the U.S., Mexico, Ireland, South Africa, UAE, and France [5] Retail Partnership - Harris Teeter, a subsidiary of The Kroger Co., has been in operation for over 60 years and employs 36,000 associates across more than 250 stores [6]

Core Viewpoint - Founding Shareholders of Lifeway Foods, Inc. are urging the board to establish an independent special committee to evaluate a buyout proposal from Danone, following the board's rejection of Danone's offer of $27 per share in cash [1][2][4]. Group 1: Proposal and Rejection - Danone North America proposed to acquire all outstanding shares of Lifeway that it does not already own for $27 per share in cash, which was rejected by Lifeway's board [2]. - Lifeway's CEO and her spouse have publicly stated their opposition to any sale of the company, indicating a personal conflict regarding the potential transaction [2][4]. Group 2: Legal and Governance Issues - Lifeway is threatening to file a lawsuit against Danone to invalidate a stockholders agreement that restricts stock grants to the CEO and gives Danone a right of first refusal on certain stock transfers [3]. - The Founding Shareholders are calling for the board to preclude Jason Burdeen from any involvement in evaluating Danone's proposal due to his perceived partiality and credibility issues highlighted by a federal judge [6][7]. Group 3: Transparency and Accountability - The Founding Shareholders demand that Lifeway disclose any valuation analysis provided by Kroll, the financial advisor, to understand the board's rationale for rejecting Danone's offer [9][10]. - There is a call for Lifeway to allow the dissemination of unredacted deposition transcripts from lawsuits filed against the Founding Shareholders, to ensure transparency and accountability in the board's actions [10]. Group 4: Management and Strategic Direction - Concerns are raised about the management's ability to prioritize shareholder interests, with criticism directed at the CEO for focusing on launching new products rather than addressing shareholder value [11]. - The Founding Shareholders express skepticism about the management's strategy for Lifeway, especially in light of recent stock sales by executive management [11].

Core Insights - Lifeway Foods, Inc. has launched a new functional beverage called Probiotic Smoothie + Collagen, made with kefir cultures, aimed at supporting skin health, the immune system, and the microbiome [1][2][3] - The new product line includes four flavors: Matcha Latte, Berry Blast, Tropical Fruit, and Plain, each containing 5 grams of collagen per serving and is lactose-free, catering to the growing consumer demand for lactose-free dairy products [1][2] Product Details - The Probiotic Smoothie + Collagen features 12 live and active cultures, providing 25-30 billion beneficial CFUs (Colony Forming Units) per serving, which may enhance skin hydration, elasticity, smoothness, and joint health [2] - The beverage is designed to support the gut-skin axis, highlighting the interconnectedness of gut and skin health [2] Market Context - The launch is part of Lifeway's New Year New You Campaign for 2025, with products expected to begin shipping in December and available in select independent and specialty stores by the end of the year [3] - The product development has been in progress since 2021, indicating a strategic approach to market readiness [3] Company Background - Lifeway Foods is recognized as a leading supplier of kefir and fermented probiotic products in the U.S., with a diverse product range including drinkable kefir and cheeses [5] - The company has a presence in multiple countries, including the U.S., Mexico, Ireland, South Africa, the UAE, and France, showcasing its international reach [5]