Edward and Ludmila Smolyansky Seek Major Board Changes at Lifeway Foods

Lifeway Foods Board Shake-Up: Smolyansky's Vision

In a significant move shaking the foundation of Lifeway Foods, Inc. (NASDAQ: LWAY), Edward and Ludmila Smolyansky, long-term shareholders with a control over approximately 23.2% of the company’s outstanding shares, announced plans to replace the current board of directors. This decision comes after mounting concerns about the board's engagement with shareholders and its strategic direction.

On July 2, 2025, the Smolyanskys filed a definitive consent statement with the U.S. Securities and Exchange Commission, setting in motion a campaign to remove the existing board led by CEO and Chair Julie Smolyansky. The couple has articulated a robust vision for Lifeway, focusing on restoring accountability and enhancing shareholder value through strategic governance changes.

Edward Smolyansky expressed, "It is clear to us the current board lacks the motivation to engage meaningfully with shareholders. We believe that initiating this consent solicitation is a direct approach to reclaiming ownership rights and steering Lifeway in a new direction. We must combat self-serving control to promote leadership that prioritizes all shareholders' interests."

The Smolyanskys are advocating for shareholders to approve four key proposals:
1. To repeal any bylaw amendments established post-March 24, 2023.
2. To remove all current directors.
3. To elect a new board of seven nominees with distinguished backgrounds in governance, finance, and operations relevant to consumer products.
4. To amend Lifeway's bylaws to prevent hiring or engaging immediate family members of the company's top executives.

These proposals are interconnected to guarantee stable leadership throughout this transformative process. The Smolyanskys’ ambitions reflect a broader desire for change after concluding that the current board has consistently disregarded shareholder feedback and failed to set a credible strategy, further criticizing the board for rewarding failure instead of progress.

Supporting their position, the Smolyanskys believe the need for immediate action is critical, emphasizing the importance of engaging qualified individuals who can genuinely restore Lifeway’s value and market presence. As Edward Smolyansky put it, “The circumstances around Lifeway demand bold and unprecedented actions; we must evict entrenched powers in favor of refreshing leadership.”

The couple encourages all Lifeway shareholders to read the Consent Statement as it comprehensively details their plans and the rationale behind these drastic measures. Shareholders will find essential information regarding the nominees and the proposed changes, which they can access through updates provided on various channels, including FreeLifeway.com.

As this situation unfolds, the impacts on Lifeway Foods' future remain to be seen. Nonetheless, this action by the Smolyanskys signifies a pivotal moment for the company and its stakeholders, sending ripples across the food and beverage industry about shareholder activism and corporate governance.

Overall, the Smolyanskys' initiative not only marks a potential shift in leadership at Lifeway Foods but also highlights critical issues around transparency, accountability, and the need for effective governance in shaping a company's trajectory in today’s competitive markets.