Lifeway Food Stock Price, News & Analysis

Lifeway Foods (Nasdaq: LWAY) announced the distribution of its Farmer Cheese to 1,400 Albertsons stores across the U.S. The product is a premium cultured soft cheese made with a small batch, artisanal recipe featuring 12 live and active probiotics and 15g of protein per serving.

The Farmer Cheese spreads like cream cheese and has a texture similar to blended cottage cheese. It is up to 99% lactose-free, gluten-free, contains no added salt, and is high in calcium. The company reports increasing consumer interest, partly driven by social media influence and viral recipes using blended cottage cheese.

This expansion represents a significant step in Lifeway's strategy to introduce the product to new audiences, building on their established position as a leading U.S. supplier of kefir and fermented probiotic products.

Lifeway Foods (NASDAQ: LWAY) anticipates a $5 million net gain from the sale of Simple Foods to Flowers Foods. This gain stems from Lifeway's early investment in Simple Mills in 2015. The company had previously realized a $1.5 million gain in 2019, bringing the total expected proceeds to approximately $6.5 million.

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

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. This gain, combined with a previously realized $1.5 million profit in 2019, brings the total expected proceeds to approximately $6.5 million.

The transaction involves Flowers Foods acquiring Simple Mills for $795 million, pending regulatory approval, with an expected closing in the first quarter of 2025. CEO Julie Smolyansky, who initiated the original investment in Simple Mills, received affirmation of support from Lifeway's Board of Directors for her management of the company.

Edward and Ludmila Smolyansky, controlling approximately 28% of Lifeway Foods (NASDAQ: LWAY) shares, have demanded CEO Julie Smolyansky withdraw her lawsuit against Edward Smolyansky. This follows a $2 million retention bonus awarded to Julie Smolyansky by the Compensation Committee in December 2024.

The Founding Shareholders question the independence of directors Jason Scher and Pol Sikar, citing their personal ties to Julie Smolyansky. They plan to expand their investigation that began in 2019, following the departure of two CFOs in 2018 and subsequent departures of two independent directors and the company's general counsel.

Ludmila Smolyansky began selling shares on January 3 to defend Edward after Lifeway's legal counsel allegedly refused to provide paperwork for Edward to monetize his holdings under their 1999 Shareholders Agreement with Group Danone. The activist campaign launched in 2022 has reportedly increased LWAY's share price, despite ongoing management conflicts.

Edward and Ludmila Smolyansky, who control approximately 28% of Lifeway Foods (NASDAQ: LWAY) shares, have requested the Board force CEO Julie Smolyansky to withdraw her lawsuit against Edward Smolyansky. This comes after a controversial $2 million retention bonus awarded to Julie Smolyansky on December 23, 2024.

The Founding Shareholders express concerns about directors Jason Scher and Pol Sikar, citing potential conflicts of interest due to their personal ties to Julie Smolyansky. The Smolyanskys plan to expand their ongoing investigation that began in 2019, following the departure of two CFOs in 2018.

Ludmila Smolyansky revealed she began selling shares on January 3 to defend Edward after Julie filed suit on January 23. The activist campaign launched by the Smolyanskys in 2022 has reportedly increased LWAY's share price, though they claim the current board is obstructing asset monetization and charitable efforts. Their stated goal remains implementing new management and an independent slate of Directors.

Lifeway Foods (LWAY), the leading U.S. supplier of kefir and fermented probiotic products, will ring the Nasdaq closing bell on February 3, 2025, celebrating significant business achievements. The company has announced projected record Q4 2024 net sales between $45.1-46.6 million and full year 2024 preliminary net sales of $185.0-186.5 million, compared to $160.1 million in 2023.

CEO Julie Smolyansky anticipates the Q4 2024 results to mark their twenty-first consecutive quarter of year-over-year topline growth. The company has demonstrated community engagement through support for Los Angeles wildfire relief efforts, partnering with initiatives like BStrong and Chicago Chefs Cook for LA.

Illinois Governor JB Pritzker commended Lifeway's contribution to the state's business community, highlighting their impact on jobs and investments in the nutrition industry.

Lifeway Foods (NASDAQ: LWAY) has rejected Danone's takeover offer, stating it severely undervalues the company. The Board emphasized it would consider a sale at a price reflecting the company's true value. Lifeway is also challenging the validity of a 1999 Stockholders agreement with Danone, claiming it violates Illinois law.

The company announced strong preliminary results, projecting 2024 net sales between $185.0-186.5 million, up from $160.1 million in 2023. Fourth quarter net sales are estimated between $45.1-46.6 million. Under CEO Julie Smolyansky's leadership, Lifeway has achieved 21 consecutive quarters of growth through Q4 2024, with total shareholder returns of 788% and 270% over five and three years respectively, measured through September 23, 2024.

Lifeway Foods (NASDAQ: LWAY) has rejected Danone's revised unsolicited proposal of $27.00 per share, stating it substantially undervalues the company. The Board highlighted Lifeway's strong performance, including 20 consecutive quarters of year-over-year growth and a 788% total shareholder return over five years. From 2019 to 2023, revenue grew 71% to $160 million, with gross profit increasing 92%. The company forecasts Adjusted EBITDA to grow from $22 million in 2023 to $45-50 million by 2027. The Board believes their standalone plan offers superior value compared to Danone's proposal.

Edward and Ludmila Smolyansky, controlling approximately 29.7% of Lifeway Foods (NASDAQ: LWAY) shares, have called for the board to establish an independent special committee to evaluate Danone's $27 per share cash offer. The founding shareholders criticize Lifeway's quick rejection of the proposal and CEO Julie Smolyansky's stated opposition to any sale. They raise concerns about conflicts of interest, as the CEO reportedly refuses to allow a sale unless specific share transfers occur. The founders also request disclosure of Kroll's valuation analysis and question the board's reliance on Jason Burdeen, whose credibility was criticized by a federal judge.