LIFEWAY FOODS RESPONDS TO LETTER FROM DANONE REAFFIRMING REJECTION OF 
UNSOLICITED TAKEOVER OFFER AND THAT 1999 STOCKHOLDER AGREEMENT SHOULD BE 
VOIDED FOR VIOLATING ILLINOIS LAW 
 
 
   PR Newswire 
 
 
   MORTON GROVE, Ill., Jan. 6, 2025 
 
 
   -- Company also announces unaudited preliminary fourth quarter net sales 
 
      between $45.1 million to $46.6 million 
 
 
 
   -- Full year 2024 preliminary unaudited net sales are projected to range 
 
      between $185.0 million and $186.5 million compared to $160.1 million in 
 
      2023 
 
 
   MORTON GROVE, Ill., Jan. 6, 2025 /PRNewswire/ -- Lifeway Foods, Inc. 
$(LWAY)$ ("Lifeway" or the "Company"), a leading U.S. supplier of 
kefir and fermented probiotic products to support the microbiome, today 
announced that its Board of Directors (the "Board") has responded to the 
December 30, 2024 letter sent to Lifeway by Danone North America PBC 
("Danone") reaffirming that the Company rejected Danone's offer to 
acquire the Company because it severely undervalues the Company, based 
on analysis by the Company's independent financial and legal advisors. 
The Board reiterated that it is not opposed to a sale at a price that 
more accurately reflects the true value of the Company. 
 
 
 
   Further, the Company has made clear that the 1999 Stockholders agreement 
between the Company and Danone violates Illinois law. An agreement that 
is invalid does not become valid simply because both parties follow its 
terms for a period of time, no matter how long. The Company intends to 
pursue all available remedies to enforce Illinois law and nullify the 
agreement. 
 
 
   "Danone is opportunistically determined to push through an inadequate 
offer and in the meantime, Lifeway has continued to execute on its 
strategy and is delivering substantial value for shareholders," said 
Julie Smolyansky, Chairwoman & CEO of Lifeway. "In addition, for the 
full year 2024, Lifeway's net sales are projected to range between 
$185.0 million to $186.5 million compared to $160.1 million in 2023, 
which demonstrates the efficacy of Lifeway's business strategy and 
execution," added Ms. Smolyansky. 
 
 
   Given Danone's unsolicited and opportunistic proposal to acquire Lifeway, 
the Company and its outside advisors are looking at the relationship 
between the parties and assessing how to best protect the interests of 
the Company and its shareholders. 
 
 
   Lifeway's CEO Ms. Smolyansky has presided over a tremendously successful 
period of growth, including 21 consecutive quarters of growth through 
the fourth quarter of 2024, double-digit year-over-year revenue growth 
in the third quarter of 2024, and total shareholder returns of 788% and 
270% over the past five and three years, respectively, (as measured 
through September 23, 2024, the last full trading day before Danone's 
initial unsolicited proposal was publicly disclosed), far outperforming 
other high growth food and beverage peers as well as the S&P 500 as 
noted above. The Board believes that Ms. Smolyansky's continued 
stewardship is critical to ensuring the success of the Company's 
standalone business plan. 
 
   About 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 the United States, Mexico, Ireland, South Africa, United Arab 
Emirates and France. Learn how Lifeway is good for more than just you 
at lifewayfoods.com. 
 
   Forward-Looking Statements 
 
 
   This press release contains "forward-looking statements" as defined in 
the Private Securities Litigation Reform Act of 1995 regarding, among 
other things, Lifeway's outlook, expected manufacturing efficiencies and 
fixed cost absorption, expectations regarding future operating and 
financial performance, future business strategy and objectives and 
expected shipping to Dubai and the United Arab Emirates. These 
statements use words, and variations of words, such as "will," "continue, 
" "build," "future," "increase," "drive," "believe," "look," "ahead," 
"confident," "deliver," "outlook," "expect," and "predict." You are 
cautioned not to rely on these forward-looking statements. These 
forward-looking statements are made as of the date of this press release, 
are based on current expectations of future events and thus are 
inherently subject to a number of risks and uncertainties, many of which 
involve factors or circumstances beyond Lifeway's control. If underlying 
assumptions prove inaccurate or known or unknown risks or uncertainties 
materialize, actual results could vary materially from Lifeway's 
expectations and projections. These risks, uncertainties, and other 
factors include: price competition; the decisions of customers or 
consumers; the actions of competitors; changes in the pricing of 
commodities; the effects of government regulation; possible delays in 
the introduction of new products; and customer acceptance of products 
and services. A further list and description of these risks, 
uncertainties, and other factors can be found in Lifeway's Annual Report 
on Form 10-K for the fiscal year ended December 31, 2023 and Quarterly 
Report on Form 10-Q for the quarter ended September 30, 2024. Copies of 
these filings are available online at https://www.sec.gov, 
http://lifewaykefir.com/investor-relations/, or on request from Lifeway. 
Lifeway expressly disclaims any obligation to update any forward-looking 
statements (including, without limitation, to reflect changed 
assumptions, the occurrence of anticipated or unanticipated events or 
new information), except as required by law. 
 
   Perceptual Advisors 
 
   Dan Tarman 
 
 
   Email: dtarman@perceptualadvisors.com 
 
   Company contact: 
 
   Derek Miller 
 
   Vice President of Communications, Lifeway Foods 
 
 
   Email: derekm@lifeway.net 
 
 
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   SOURCE Lifeway Foods, Inc. 
 
 
 
 
 
 

(END) Dow Jones Newswires

January 06, 2025 09:57 ET (14:57 GMT)