The ongoing family feud at Lifeway Foods continues as CEO Julie Smolyansky’s relatives once again seek to remove her and the company’s board of directors, sparking a renewed conflict that has spanned several years.
This week, her brother Edward Smolyansky and mother Ludmila Smolyansky filed a consent statement with the U.S. Securities and Exchange Commission, alleging that the Lifeway board has failed in corporate governance, resulting in detrimental effects on the business, employees, and shareholders.
Edward and Ludmila argue for a change in leadership at Lifeway Foods, emphasizing the need for a fresh approach with new leaders at the helm.
In an interview with Food Dive, Edward highlighted a lack of effective leadership at the kefir producer, stating that the company is essentially running on autopilot with inadequate understanding of industry trends and minimal investment in marketing.
Founded nearly 40 years ago by Michael and Ludmila Smolyansky, Lifeway Foods saw Julie take over as CEO at a young age following her father’s passing in 2002. Edward, who previously served as the company’s chief operating officer, now leads a rival kefir company, Pure Culture Organics.
Ludmila expressed the difficulty of filing the consent statement but emphasized the importance of steering Lifeway Foods in a new direction that respects its history while securing its future. She believes that a fresh strategy will benefit all stakeholders, including employees, shareholders, and even her daughter Julie.
Contrary to the family’s dissent, Lifeway stands by its current strategy, citing a 13% year-over-year increase in sales and a net revenue of $160 million in 2023. Julie Smolyansky attributes the company’s success during the pandemic to a growing interest in gut health among consumers.
However, Edward contends that Lifeway’s growth has stagnated over the past two decades, falling behind competitors like Chobani and Siggi’s due to leadership failures. He criticizes his sister for prioritizing personal gain over the company’s well-being, accusing her and her associates of unethical practices.