Lifeway Foods Responds to Danone's Aggressive Business Tactics Amid Hostile Takeover Attempts

Lifeway Foods Responds to Danone's Aggressive Business Tactics

Lifeway Foods, Inc., a prominent player in the U.S. kefir and probiotic markets, has made headlines with its recent statement regarding Danone's questionable business maneuvers. This latest grievance has arisen in the context of what Lifeway describes as predatory actions stemming from Danone’s ongoing attempt to execute a hostile takeover at a vastly undervalued price. Lifeway's commitment to its shareholders shines through its announcement as it stands firm against corporate bullying.

The controversy began following Danone's recent filing with the Securities and Exchange Commission, which includes a dubious Schedule 13D letter that references a lawsuit against Lifeway. Lifeway's Board of Directors views this as part of a larger campaign by Danone to pressure them into succumbing to a takeover that does not reflect their true value. According to Lifeway, Danone has leveraged its corporate influence irresponsibly and has shown little interest in negotiating in good faith.

Since Danone's initial investment in Lifeway back in 1999, the partnership has been fraught with tensions. Lifeway contends that Danone has exploited a Stockholders’ Agreement from that time, which they believe is invalid, to its own advantage while disregarding the interests of Lifeway’s shareholders. Particularly troubling is Danone's refusal to offer market-level equity compensation for Lifeway's executives over two decades, which has undermined the company’s competitive position.

Furthermore, Lifeway has accused Danone of stifling potential value-enhancing acquisitions, a maneuver that has allowed Danone to operate without accountability, especially after its acquisition of Wallaby Yogurt as part of a larger White Wave Foods deal. Lifeway articulates that, despite Danone's attempts to intimidate, they will not stand down and remain resolute in defending their shareholders’ interests.

In a statement showcasing their recent performance, Lifeway disclosed that it has achieved record financial results for the fiscal year ended 2024, with robust top-line revenue figures. In addition, their sales for the last week of February 2025 reached $4.5 million, marking a 17% increase from the prior year. These metrics highlight Lifeway's strong market position as a leader in the kefir segment, further validating their claim that Danone's actions are misguided.

Lifeway is preparing to file a counterclaim against Danone, signaling its intention to vigorously contest the allegations being leveled against the company. This ongoing battle not only has significant implications for both companies but also for the future of the kefir market as a whole. Lifeway’s ongoing commitment to safeguard itself from what it deems toxic corporate practices is indicative of a broader conversation surrounding fair competition and corporate ethics in business.

As Lifeway continues to challenge Danone's tactics, its message to shareholders and stakeholders is clear: they will not bend to pressure or unethical business practices. Despite Danone’s corporate bullying, Lifeway remains dedicated to maximizing shareholder value and protecting its legacy at the forefront of the kefir industry.

In summary, Lifeway Foods stands firm against Danone’s hostile takeover attempts and asserts its commitment to delivering value to its shareholders. With an impressive record of financial performance and a strong brand presence, Lifeway is poised to confront the ongoing challenges from its past business partner, ensuring that it upholds the interests of its stakeholders first and foremost.

For more information about Lifeway Foods and their products, visit Lifeway Foods.