MORTON GROVE, Ill., July 29, 2025 /PRNewswire/ — Lifeway Foods, Inc. (NASDAQ: LWAY), the dominant player in the U.S. kefir market, is breathing a sigh of relief after Institutional Shareholder Services Inc. (ISS), a bellwether in proxy advisory services, recommended shareholders “DO NOT VOTE” in the ongoing consent solicitation led by dissident shareholders.
According to the highly anticipated ISS report, “the dissident has not presented a compelling case for change,” effectively siding with Lifeway’s current leadership. ISS advised shareholders to flatly “DO NOT VOTE” on any proposals emanating from Ludmila and Edward Smolyansky and their associated group.
Julie Smolyansky, CEO and Chair of Lifeway Foods, expressed her gratitude, stating, “We appreciate ISS’s thorough review and are pleased that their recommendation supports our belief that this consent solicitation is unwarranted, disruptive and not in the best interest of Lifeway shareholders.” This marks a significant victory for Smolyansky, who has been at the helm of the company navigating shifting consumer tastes and increasing competition in the probiotic beverage arena.
The ISS analysis offered several key points backing its recommendation:
- ISS highlighted Lifeway’s recent performance, noting “financial performance has been directionally positive.” Furthermore, they pointed to how Lifeway’s “share price [has] rallied over the preceding year on multiple positive earnings announcements,” resulting in a total shareholder return significantly outpacing its rivals within the Russell 3000 Food Producers Index. This suggests that the current management team’s strategies are resonating with investors.
- The report also took aim at the dissident group’s critiques, stating they “are generally presented without adequate context.” Crucially, ISS observed that the dissidents “do not clearly establish how various developments have actually impacted shareholder returns.” This undermines the core argument for change put forth by the Smolyansky group.
- Adding further weight to their stance, ISS noted the dissident group “has not presented a plan should it successfully secure a majority of board seats” – leaving the market wondering about a cohesive vision for governance and operational improvement.
- The ISS report also raised concerns regarding individuals within the dissident nominees slate, citing their past contributions to governance issues during their previous tenures at the company, a stinging rebuke of their capabilities.
- Smolyansky emphasized the company’s commitment by saying, “The Lifeway Board and management team remain focused on maximizing shareholder value and will continue to pursue all opportunities to drive additional value,” urging shareholders to align with ISS’s recommendation and “take no action on the consent solicitation.”
About Lifeway Foods, Inc.
Lifeway Foods, Inc., a Forbes’ Best Small Company honoree, stands as America’s premier supplier of kefir, the tangy and probiotic-rich fermented beverage. Beyond its signature drinkable kefir, the company extends its offerings to include various cheeses and the ProBugs line tailored for children. Lifeway’s dairy products grace shelves across the United States, Mexico, Ireland, South Africa, United Arab Emirates, and France. More information can be found at lifewayfoods.com.
Important Additional Information
Lifeway is poised to engage with its shareholders more directly, indicating its intention to file a proxy statement on Schedule 14A, including a BLUE proxy card, with the U.S. Securities and Exchange Commission (SEC). Investors are urged to review definitive proxy statements and related filings from the SEC, with more information available on the “Investor Relations” tab of the Company’s website at http://lifewaykefir.com/investor-relations/.
Participants in the Solicitation
The company and its directors and officers are considered participants in the proxy solicitation for the 2025 annual meeting, and more information about the same can be found on the SEC website.
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SOURCE Lifeway Foods, Inc.
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