#United States #Lifeway Foods #Smolyansky #Morton Grove #ISS

Lifeway Foods Backs ISS's Advice Against Dissident Campaign

Lifeway Foods, Inc., a prominent American provider of kefir and other probiotic products, has officially recognized the recommendation made by Institutional Shareholder Services Inc. (ISS). This decision advises shareholders against participating in an ongoing campaign led by dissident shareholders Ludmila and Edward Smolyansky.

In its analysis, ISS emphasized that the dissident's case for change is lacking in substance, stating that shareholders should 'DO NOT VOTE' on the proposals submitted by the Smolyanskys and their affiliates. Julie Smolyansky, the CEO and Chair of Lifeway Foods, expressed appreciation for ISS's analysis, affirming the belief that the solicitation led by the dissidents is both unnecessary and disruptive to the company’s progress.

Positive Financial Trajectory

One of the key points made by ISS is that Lifeway Foods has experienced positive growth in financial performance. The company's share price has shown a notable increase over the past year, notably boosted by multiple positive earnings reports that have significantly outpaced the median gain within the Russell 3000 Food Producers Index. This upward trend in shareholder return suggests that Lifeway is effectively executing its strategies to create value for its investors.

Critiques Lacked Context

Furthermore, ISS criticized the dissident group's critiques, noting that they often lack adequate context and fail to convincingly connect their claims with tangible impacts on shareholder returns. The absence of a clear governance or operational improvement plan from the dissidents leaves many questions unanswered, which casts doubt on the efficacy of their proposals.

Concerns Over Governance

Additionally, Lifeway highlighted concerns regarding the dissident nominees, some of whom have previously raised governance issues during their tenures with the company. The context of these past concerns further solidifies the case for shareholders to view the proposals suspiciously.

The Lifeway Board and its management team have reassured shareholders that they are committed to maximizing value and are continuously exploring avenues for enhancement. This level of assurance, coupled with ISS's favorable evaluation of Lifeway's status, positions the board strongly against the dissident campaign.

Lifeway Foods Overview

Lifeway Foods has been celebrated for its production of kefir, a fermented beverage renowned for its probiotic properties. Known for offering a variety of products, including drinkable kefir, cheeses, and specialty options for children, the brand has made significant inroads not just in the United States, but also in international markets such as Mexico and France. As a recognized leader in its sector, Lifeway is determined to continue advancing its mission while delivering strong returns to its shareholders.

Looking Ahead

In light of the ongoing solicitation, Lifeway intends to file relevant documentation with the U.S. Securities and Exchange Commission (SEC) to solicit votes from shareholders regarding its forthcoming annual meeting. As shareholders prepare to make decisions, they are urged to consider the forthcoming proxy statements and the implications of their involvement in the dissident’s campaign. Lifeway Foods aims to keep its shareholders informed and intends to maintain transparency about its processes moving forward.

In summary, the recommendation from ISS substantiates Lifeway’s strategy and reinforces its commitment to shareholder value amidst external pressures from dissident entities. As the company moves forward, it invites its shareholder base to heed the guidance offered by ISS during this pivotal time.