The shareholders announced the filing with the US Securities and Exchange Commission, launching their “Life Back to Lifeway” campaign to bring in leadership committed to revitalizing the company in the best interests of shareholders.
Ludmila and Edward, mother and brother of CEO Julie respectively, aim to address the corporate governance failures that have negatively impacted the business, employees, and financial results for shareholders.
Today, Lifeway reported a 25.3% year-on-year increase in net sales to $49.2m, attributed to higher volumes of branded drinkable kefir, with net income reaching $3.8m.
Former COO of Lifeway Foods, Edward Smolyansky, criticized the lack of strategic vision under Julie’s leadership and called for a fresh approach prioritizing growth and innovation.
Former chairperson, Ludmila Smolyansky, emphasized the need for a new direction to secure Lifeway’s future while honoring its legacy, thereby benefiting employees, shareholders, and the company as a whole.
Lifeway Foods, established by Michael Smolyansky in 1986 and later led by Julie and Edward, experienced internal strife in 2022, resulting in calls for strategic changes.
The feud was temporarily resolved in August, but resurfaced as the Smolyansky family clashed over leadership decisions and the establishment of Pure Culture Organics by Edward.
In response, Lifeway challenged the motives of Ludmila and Edward, emphasizing their lack of concern for the company’s best interests amid legal disputes.
