Lifeway Food Stock Price, News & Analysis

Lifeway Foods (LWAY) CEO Julie Smolyansky has initiated an industry-wide dialogue to develop a new voluntary dairy certification standard, announced during The Wall Street Journal Global Food Forum. The proposed certification aims to create a middle ground between conventional and organic dairy production, focusing on animal welfare, responsible antibiotic use, sustainable farming practices, milk nutrition quality, and environmental stewardship. As part of Lifeway's 40th anniversary initiatives, the company has launched ANewDairyCertification.org to gather stakeholder feedback and facilitate collaboration among producers, regulators, non-profits, and experts. The certification framework is intended to enhance transparency in the dairy marketplace while balancing public health concerns, consumer demands, and farmer viability.

Lifeway Foods (NASDAQ: LWAY) has announced the establishment of National Kefir Day, to be celebrated annually on June 18, marking nearly 40 years of the company's leadership in probiotic products. The inaugural celebration will feature events across Chicago, New York, Los Angeles, and Miami, with the official proclamation taking place in Chicago's Illinois Medical District. CEO Julie Smolyansky will lead the event, highlighting kefir's role in gut health and disease prevention. The celebration includes free kefir sampling events, a drone show over Lake Michigan, and a unique tattoo challenge offering winners a year's supply of kefir. Lifeway Kefir contains 12 live probiotic cultures and provides protein, calcium, and essential vitamins. Additionally, Smolyansky will keynote The Wall Street Journal's Global Food Forum, where she will announce plans for a new voluntary dairy certification program.

Lifeway Foods (LWAY) announced major retail expansion plans for 2025 alongside strong financial performance. The company reported $37.6M in net sales for April-May 2025, up 10.7% YoY, with YTD sales reaching $83.7M. Lifeway projects Q2 2025 net sales between $52-56M. The expansion includes new product placements across major retailers including Amazon Fresh, BJ's Wholesale, CVS, HEB, Target, and Whole Foods. Key products gaining distribution include Lifeway Kefir in various sizes and flavors, plus Farmer Cheese, which has seen a 63% unit increase YTD in measured channels. The expansion capitalizes on growing consumer interest in probiotic and fermented foods, driven by social media trends around gut health and wellness benefits.

Edward and Ludmila Smolyansky, who own 27% of Lifeway Foods (NASDAQ: LWAY), have filed a revised preliminary consent statement to remove and replace the company's directors, citing serious concerns about Q1 2025 performance and governance issues. Despite reporting a 44% YoY increase in EPS, this was attributed to a one-time $3.4M investment gain. The company faced significant operational challenges including a 55% decline in operating income, margin compression to 3.4% from 7.9%, weak sales growth of 3.3%, and rising expenses. The Smolyanskys criticized the Board's handling of the Danone offer, questionable CEO compensation, and the failed Glen Oaks acquisition. They are proposing a new slate of independent directors to restore operational discipline and evaluate strategic alternatives.

Lifeway Foods (NASDAQ: LWAY), a leading kefir and fermented probiotic products supplier, reported strong Q1 2025 financial results. The company achieved net sales of $46.1 million, marking a 3.3% year-over-year increase and its 22nd consecutive quarter of year-over-year sales growth. Notable highlights include a 44% increase in EPS with net income reaching $3.5 million ($0.23 per share). The company's core metrics showed solid performance with a gross profit margin of 24.0% and SG&A expenses at 20.2% of net sales. Excluding strategic adjustments, Lifeway delivered nearly 11% volume-led growth. The company secured commitments for over 2,000 new distribution points and expanded presence to 40 airports. Management remains confident in achieving their FY2027 Adjusted EBITDA target of $45-50 million.

Edward Smolyansky, who owns ~27% of Lifeway Foods (NASDAQ: LWAY) with Ludmila Smolyansky, criticizes the company's amended 2024 Annual Report and recent executive compensation decisions. The key concerns include: 1) Potential delay of the 2025 Annual Meeting beyond June 2, despite Edward's submission of Board nominees on March 13, 2) Questionable compensation awards to CEO Julie Smolyansky, including a $2 million retention bonus and $6.5 million equity grant despite a 20.6% earnings decline, 3) Over $1 million spent on dismissed legal actions against shareholders, 4) Governance issues regarding Jason Burdeen (CEO's husband) acting in legal matters without qualifications, receiving $313,800 in compensation in 2024. The statement questions the board's rejection of Danone's premium offer and criticizes the company's legal and regulatory dysfunction under current leadership.

Lifeway Foods has achieved a significant milestone by surpassing $5 million in gross sales for the week ending April 27th, 2025. This record-breaking performance represents a 35% increase from the previous year, driven by strong demand for Lifeway Kefir and Lifeway Farmer Cheese products.

The company, a leading U.S. supplier of kefir and fermented probiotic products, will release its first quarter 2025 financial results on May 13, 2025 before market hours. CEO Julie Smolyanksy will discuss these results in a pre-recorded conference call and webcast, which will be accessible through the Investor Relations section of Lifeway's website.

Lifeway Foods (NASDAQ: LWAY) faces internal turmoil as Edward and Ludmila Smolyansky, who own 28% of shares, protest the dismissal of Amy Feldman, Senior Executive VP of Sales, on February 28, 2025. The firing occurs amid controversy over CEO Julie Smolyansky's recent compensation package, including a $2 million cash bonus and 283,337 shares valued at $6.5 million, representing 94% of the company's 2024 net income.

The share award is currently under litigation due to lack of required consent from major investor Danone North America. Edward and Ludmila Smolyansky demand

• Transparency regarding Feldman's termination
• Rescission of CEO's share award
• Distribution of equity to employees
• Release of Q1 2025 financial reports

The Smolyanskys have submitted a full slate of Board nominees for the 2025 Annual Meeting, pushing for leadership changes and improved governance.

Lifeway Foods (NASDAQ: LWAY) anticipates a $5 million net gain from the sale of Simple Mills to Flowers Foods, following their early investment in 2015. The total expected proceeds for Lifeway will reach $6.5 million, including a previously realized gain of $1.5 million in 2019.

The acquisition deal values Simple Mills at $795 million and is expected to close in Q1 2025, subject to regulatory approval. Lifeway's Board of Directors has expressed support for CEO Julie Smolyansky, who was responsible for the initial Simple Mills investment decision.