Lifeway Foods Acknowledges ISS Recommendation to Reject Dissident Campaign
Lifeway Foods (NASDAQ: LWAY), a leading kefir and fermented probiotic products supplier, announced that Institutional Shareholder Services (ISS) has recommended shareholders "DO NOT VOTE" on the dissident-led consent solicitation by Ludmila and Edward Smolyansky.
ISS's analysis highlighted Lifeway's positive financial performance, noting significant outperformance against the Russell 3000 Food Producers Index peers. The report criticized the dissident group for lacking adequate context in their critiques and failing to present a clear governance or operational improvement plan.
CEO Julie Smolyansky welcomed ISS's recommendation, emphasizing that the consent solicitation is unwarranted and disruptive to shareholder interests.
Lifeway Foods (NASDAQ: LWAY), un fornitore leader di kefir e prodotti probiotici fermentati, ha annunciato che Institutional Shareholder Services (ISS) ha raccomandato agli azionisti di "NON VOTARE" sulla richiesta di consenso guidata dai dissidenti Ludmila ed Edward Smolyansky.
L'analisi di ISS ha evidenziato la performance finanziaria positiva di Lifeway, sottolineando una significativa sovraperformance rispetto ai pari dell'indice Russell 3000 Food Producers. Il rapporto ha criticato il gruppo dissidente per la mancanza di un contesto adeguato nelle loro critiche e per non aver presentato un piano chiaro di miglioramento della governance o delle operazioni.
La CEO Julie Smolyansky ha accolto con favore la raccomandazione di ISS, sottolineando che la richiesta di consenso 猫 ingiustificata e dannosa per gli interessi degli azionisti.
Lifeway Foods (NASDAQ: LWAY), un proveedor l铆der de k茅fir y productos probi贸ticos fermentados, anunci贸 que Institutional Shareholder Services (ISS) ha recomendado a los accionistas "NO VOTAR" en la solicitud de consentimiento liderada por los disidentes Ludmila y Edward Smolyansky.
El an谩lisis de ISS destac贸 el desempe帽o financiero positivo de Lifeway, se帽alando un rendimiento significativamente superior frente a sus pares del 铆ndice Russell 3000 Food Producers. El informe critic贸 al grupo disidente por carecer de un contexto adecuado en sus cr铆ticas y por no presentar un plan claro de mejora en la gobernanza u operaciones.
La CEO Julie Smolyansky acogi贸 favorablemente la recomendaci贸n de ISS, enfatizando que la solicitud de consentimiento es injustificada y perjudica los intereses de los accionistas.
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Lifeway Foods (NASDAQ: LWAY), un fournisseur majeur de k茅fir et de produits probiotiques ferment茅s, a annonc茅 que Institutional Shareholder Services (ISS) a recommand茅 aux actionnaires de "NE PAS VOTER" lors de la sollicitation de consentement men茅e par les dissidents Ludmila et Edward Smolyansky.
L'analyse d'ISS a soulign茅 la bonne performance financi猫re de Lifeway, notant une surperformance significative par rapport aux pairs de l'indice Russell 3000 Food Producers. Le rapport a critiqu茅 le groupe dissident pour son manque de contexte ad茅quat dans ses critiques et pour ne pas avoir pr茅sent茅 de plan clair d'am茅lioration de la gouvernance ou des op茅rations.
La PDG Julie Smolyansky a accueilli favorablement la recommandation d'ISS, soulignant que la sollicitation de consentement est injustifi茅e et nuisible aux int茅r锚ts des actionnaires.
Lifeway Foods (NASDAQ: LWAY), ein f眉hrender Anbieter von Kefir und fermentierten probiotischen Produkten, gab bekannt, dass Institutional Shareholder Services (ISS) den Aktion盲ren empfohlen hat, bei der von den Dissidenten Ludmila und Edward Smolyansky gef眉hrten Zustimmungsaufforderung "NICHT ZU STIMMEN".
Die Analyse von ISS hob die positive finanzielle Leistung von Lifeway hervor und stellte eine deutliche 脺berperformance gegen眉ber den Vergleichsunternehmen im Russell 3000 Food Producers Index fest. Der Bericht kritisierte die Dissidenten daf眉r, dass sie in ihren Kritiken den ausreichenden Kontext vermissen lie脽en und keinen klaren Plan zur Verbesserung der Unternehmensf眉hrung oder der operativen Abl盲ufe vorlegten.
CEO Julie Smolyansky begr眉脽te die Empfehlung von ISS und betonte, dass die Zustimmungsaufforderung unbegr眉ndet und f眉r die Interessen der Aktion盲re st枚rend sei.
- ISS recommendation supports current management's position
- Company has shown positive financial performance with strong share price rally
- Total shareholder return significantly outperforming Russell 3000 Food Producers Index peers
- Ongoing internal conflict with dissident shareholders
- Corporate governance challenges from dissident campaign
Insights
ISS backing current Lifeway management strengthens their position against dissidents, likely preserving current strategy that's delivering strong returns.
This ISS recommendation represents a significant victory for Lifeway Foods' current leadership in their battle against the dissident campaign led by Ludmila and Edward Smolyansky. The endorsement from a respected independent proxy advisory firm like ISS carries substantial weight with institutional investors and validates the current management's strategic direction.
The key elements supporting management include outperformance against the Russell 3000 Food Producers Index and
What's particularly notable is ISS's criticism of the dissidents' arguments as lacking adequate context, suggesting their campaign may be more personally motivated than shareholder-focused. The observation that some dissident nominees previously contributed to governance concerns during past tenures raises serious red flags about their qualifications.
This development likely stabilizes Lifeway's governance situation in the near term, allowing management to maintain focus on business execution rather than corporate infighting. For a company in the competitive functional foods space, this operational continuity is valuable. The robust defense of current leadership, supported by measurable performance metrics, suggests the dissident campaign is unlikely to succeed without presenting a more compelling alternative vision.
In its report, ISS concluded that "the dissident has not presented a compelling case for change" and advised shareholders to "DO NOT VOTE" on all proposals put forth by Ludmila and Edward Smolyansky and their aligned group.
"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," said Julie Smolyansky, CEO and Chair of Lifeway Foods.
The ISS analysis noted that:
- Lifeway's "financial performance has been directionally positive" and its "share price [has] rallied over the preceding year on multiple positive earnings announcements," with total shareholder return significantly outperforming peers in the Russell 3000 Food Producers Index.
- The dissident group's critiques "are generally presented without adequate context," and the dissident group "does not clearly establish how various developments have actually impacted shareholder returns."
- The dissident group "has not presented a plan should it successfully secure a majority of board seats" for governance or operational improvement.
- The dissident nominees include individuals who previously contributed to governance concerns during their past tenures at the Company.
- "The Lifeway Board and management team remain focused on maximizing shareholder value and will continue to pursue all opportunities to drive additional value," added Smolyansky. "We encourage shareholders to follow ISS's guidance and take no action on the consent solicitation."
About听Lifeway Foods, Inc.
Lifeway Foods, Inc., which has been recognized as one of Forbes' Best Small Companies, is America's leading supplier of the probiotic, fermented beverage known as Kefir. In addition to its line of drinkable Kefir, the company also produces a variety of cheeses and a ProBugs line for kids. Lifeway's tart and tangy fermented dairy products are now sold across
Important Additional Information
The Company intends to file a proxy statement on Schedule 14A, an accompanying BLUE proxy card and other relevant documents with the
Participants in the Solicitation
The Company, each of its independent directors (Juan Carlos Dalto, Jody Levy, Dorri McWhorter, Perfecto Sanchez, Jason Scher and Pol Sikar) and certain of its executive officers (Julie Smolyansky, Chief Executive Officer, President and Secretary, and Eric Hanson, Chief Financial and Accounting Officer and Treasurer) are deemed to be "participants" (as defined in Schedule 14A under the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from the Company's shareholders in connection with matters to be considered at the Company's 2025 annual meeting of shareholders. Information about the names of the Company's directors and officers, their respective interests in the Company by security holdings or otherwise and their respective compensation is set forth in the "Information About Our Directors and Executive Officers" section in Part III, Item 10 鈥� Directors, Executive Officers and Corporate Governance of Amendment No. 1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on April 29, 2025 (the "Form 10-K Amendment"), in Part III, Item 11 鈥� Executive Compensation of the Form 10-K Amendment and in the "Security Ownership of Certain Beneficial Owners and Management" section in Part III, Item 12 鈥� Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters of the Form 10-K Amendment. Supplemental information regarding the participants' holdings of the Company's securities can be found in SEC filings on Statements of Change in Ownership on Form 4 filed with the SEC on June 18, 2025 for Julie Smolyansky (available ) and Eric Hanson (available ) and on July 1, 2025 for each of Pol Sikar (available ), Juan Carlos Dalto (available ), Jason Scott Scher (available ), Dorri McWhorter (available ), Perfecto Sanchez (available ), and Jody Levy (available ).
Contact:
Perceptual Advisors
Dan Tarman
贰尘补颈濒:听[email protected]
Derek Miller听
Vice President of Communications, Lifeway Foods
贰尘补颈濒:听[email protected]听
General inquiries:
Lifeway Foods, Inc.
Phone: 847-967-1010
贰尘补颈濒:听[email protected]
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