#USA #Chicago #Lifeway Foods #Edward Smolyansky #Amy Feldman

Lifeway Foods Faces Leadership Crisis

In a significant turn of events within Lifeway Foods, Edward Smolyansky has publicly condemned the recent dismissal of Amy Feldman, the Senior Executive Vice President of Sales, whose leadership was pivotal in shaping the company's current growth strategy, dubbed 'Lifeway 2.0.' Smolyansky, along with his partner Ludmila, controls approximately 28% of the company's shares, amounting to 4,163,141 shares. They believe this termination could damage the company's morale and stability during a critical transition phase.

The unexpected firing on February 28, 2025, has raised eyebrows among employees and stakeholders. Feldman's contributions in developing Lifeway's modern sales initiatives were highly regarded, making her sudden removal all the more shocking. Smolyansky articulated that this decision reflects not only poor management but also a troubling pattern of retaliatory actions against effective leaders within the organization:

"Terminating Amy Feldman at this critical time is not just poor judgment — it's a direct blow to the teams she led and the vision she helped build," Smolyansky stated. "This is a textbook example of retaliation and consolidation of power under a leadership team that continues to disregard the talent and effort behind Lifeway's success."

Adding fuel to the fire, the board's recent actions have been scrutinized. Just weeks before Feldman's termination, CEO Julie Smolyansky was awarded a staggering $2 million cash bonus and roughly 283,337 shares of stock, valued at around $6.5 million. This amount represented over 94% of Lifeway's net income for 2024, awarded without necessary consents from Danone North America, Lifeway's principal outside investor, and is now subject to ongoing litigation.

In light of these incidents, Edward and Ludmila Smolyansky are calling on the board to take immediate steps to rectify the situation. Their demands include:

• - A transparent explanation for the termination of Amy Feldman and whether the decision was properly consulted with the board.
• - A revocation of the recent share award to CEO Julie Smolyansky, redirecting that equity towards Lifeway's employees through an equitable incentive plan.
• - An end to the prevailing anti-employee culture within the company, which they feel undermines the very foundation of Lifeway Foods.
• - Timely disclosure of Lifeway’s preliminary financial reports for Q1 2025 to restore confidence among investors.

Smolyansky expressed concern about the company's trajectory and its approach:

"We've now seen Lifeway remove the largest outside investor from the table, strip the company of its most effective sales leader, and reward insiders with millions — all while the company's revenue growth and morale continue to decline."

In response to these challenges, Edward and Ludmila Smolyansky have also announced their intention to nominate a full slate of candidates for the board at the upcoming 2025 Annual Meeting. Their preliminary proxy statement, filed with the SEC on March 28, 2025, articulates a need for new leadership focused on restoring long-term shareholder and employee value.

Edward asserted a commitment to the company's workforce, stating, "For any Lifeway employee wondering what's next, we see you, we support you, and we will not stop fighting for a company culture that respects and rewards your contribution." As Lifeway Foods navigates this turbulent period, stakeholders will be keenly observing how leadership dynamics evolve in the wake of this controversy. To stay informed about the ongoing situation and their proxy campaign, one can follow Edward Smolyansky on LinkedIn or visit FreeLifeway.com for more information regarding their nomination efforts and associated SEC filings.

As this situation develops, the implications for Lifeway Foods, its employees, and investors remain ambiguous, yet the urgency for change is being broadcasted loudly by those at the helm of this shareholder activism initiative.