May 16, 2025 • 17 mins
Julie Smolyansky, Chairperson of the Board, President and CEO of Lifeway Foods discusses what she considers to be a hostile takeover attempt by dairy-product maker Danone, which has been among Lifeway's major shareholders for more than 25 years.
Danone responded in a statement issued to Bloomberg that "there is no ‘raid’ or ‘hostile bid,’ since Lifeway's board decided in November 2024 to reject Danone's highly attractive $27-per-share acquisition proposal, depriving Lifeway's shareholders of a very significant premium."
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. You're listening to Bloomberg
Business Week with Carol Masser and tim Stenoveek on Bloomberg Radio.
I want to bring back Julie Smolanski. She's CEO of
Lifewave Foods. She's been on with us in the past. Well,
I've spoke to her back in December. The company LifeWay Foods.
(00:23):
You might know it if you're a listener, if you're
a viewer, or if you've been to a grocery store
because to three hundred fifty million dollar market cap. They
make keifer and farm cheese, so you might have seen
their products on the shelves. They reported earnings earlier this week, Tuesday,
they came out with the numbers. The market reaction was
on Wednesday, share surged to hire by more than fourteen
(00:44):
and a half percent. The company reported a forty four
percent year every year increase in earnings per share, Net
sales up three point three percent year over year, and
it was the twenty second quarter of consecutive growth under
Julie's leadership. Julie joins us once again from Los Angeles. Julie,
there's a lot to talk about. I mentioned that you
(01:05):
were on with us back in December to discuss the
company rejecting an unsolicited offer, a takeover offer by Denown
North America. What is the status of the back and
forth now between the two companies.
Speaker 2 (01:17):
Well, we are in.
Speaker 3 (01:19):
Court and we are working to defend this hostile takeover.
It's a classic David and Goliath story. But you know this,
their offer farly undervalues the company, and we're fighting for
all shareholders and we know that we're at the tipping
point right now. We have, you know, a strong balance
(01:42):
sheet and we're not a distressed company. So you know,
we feel that the offer is really undervalues us, and
we feel that the reason why they think that they
can take us over in a hostile manner are the
very contract that we're disputing is invalid. It's against Illinois
(02:05):
state law. All shareholders did not agree to it, and
uh it gives a minority shareholder control over management and
board decisions. So we believe that the Cook County courts
will side with us. And this situation is really unprecedented,
and you know, we're fighting against the largest B corp
(02:26):
in the world who's behaving like an activist. It's it's
unprecedented Uh, and it's not something we typically see in
the natural food industry at a time when you know,
other companies are being valued at exceptional rates. We just
saw Poppy being acquired by Pepsi for a billion two
billion dollars. You know, we're in the probiotic space. We
(02:48):
have a lot of science behind our product. Uh, in
two thousand years of history. This is not a fad,
This is not a trend. This is a two thousand
year old staple product that my ancestor is, my great
great grandparents, grandmothers, you know, developed and protected and you know,
my father brought Keefer to America and he pioneered this
(03:13):
and we pioneered this. LifeWay is the premier keyfer company
in the world, and so it's no surprise to me
that they want to steal us. But you know, I'm
going to make sure that all shareholders benefit from a
good value of our company, one that we know and
you know we're on targets to strong, continued, strong performance.
Speaker 1 (03:34):
Well, I do want to say you sent a message
out on social media earlier saying that you would be
on our program. A little later, you cause said you
were going to defend LifeWay. Kafir against corporate raiders and bullies,
and you called it shameful when the largest B corporation
in the world behaves like greedy hedge funds. Denone did
send us a response to that, a lengthy response. I'm
(03:55):
going to read from it and get your reply. It says,
in part, Julie Smolansky's out delegations against denown are false
and detached from reality. There's no raid or hostile bid
since LifeWay's board decided in November twenty twenty four to
reject Denown's highly attractive twenty seven dollars per share acquisition proposals,
depriving LifeWay shareholders of a very significant premium. Denote has
(04:18):
been a major shareholder in LifeWay for more than twenty
five years and is defending a legally binding shareholder agreement.
The statement continues to say, the only greed demonstrated here
is by miss Molansky at the expense of LifeWay's public shareholders.
How do you respond to that?
Speaker 3 (04:34):
I think the language speaks for that's for themselves, for itself.
Speaker 2 (04:40):
You know this shareholder agreement is illegal.
Speaker 3 (04:44):
Many lawyers have looked at it, as well as Illinois
legislators have looked at it and have all agreed it's illegal, improper,
and it harms LifeWay, it harms the public at large,
It benefits nobody but Danin and it we believe it's void,
and the courts will you know, will work through that
(05:07):
in the courts. But you know, they themselves are on
the record is saying that they're going to make a move,
that they're making a move on Keifer in the United States.
They have already christened their hostile takeover by example of
their photograph on the front page of their annual report
with Activia Keifer. They already have shared their plans and
(05:29):
that those plans are to wipe us off the face.
Speaker 2 (05:32):
Of the earth and get rid.
Speaker 3 (05:34):
Of our brand and take over the space. You know,
they're in enable to grow organically on their own, so
they do this with This is a standard operating procedure
for them, and you can see that by the debacle
of their Horizon takeover, their their White Wave takeover, their
Wallaby takeover. They have a history of corporate rating and
(05:57):
I don't think farmers in America or our community here
in America or around the world, you know, is going
to benefit from such actions.
Speaker 2 (06:06):
And we will continue to defend them and I'm not
going to be bullied.
Speaker 1 (06:10):
We're speaking with Julie Smolanski, CEO of a Lifewave Food.
She's also chairperson the board and president of the company.
Speaker 4 (06:17):
Julia, I'm wondering if there is a price that is
fair for potentially a merger, would you be open to
that if the price was right, and what would it be.
Speaker 3 (06:29):
We are open to any offer that makes sense for
all shareholders, that values the company in a proper way,
in a way that also looks at the potential and
the growth. When there is a tipping point right now
in food and they know it, which is why they're
trying to take this over and steal.
Speaker 2 (06:46):
This because they know it. We own ninety five percent.
Speaker 3 (06:49):
Of the most hottest global categories in the world. Kiefer
is the subject of intense science and research studies all
around the world. Just recently a couple of months ago
out of Boston, they did a long, long study of
over thirty years that followed one hundred and thirty thousand
people and found that people who consumed probiotic fermented dairy
(07:14):
foods like found in LifeWay Keefer were able to reduce
coalon cancer by twenty to thirty percent. This is groundbreaking research.
We also know that Keifer can help prevent ADHD. We've
seen research showing that we have seen the mind gout
access and the way that Keifer can help reduce stress,
depression and anxiety through the vegas nerve. There is a
(07:36):
skin gut access. We know that Keifer's beneficial to the skin.
This is just science and research back so you know
in the GLP one conversation, just to throw that one,
and we have a high quality, bioavailable protein product loaded
with calcium nutrients that people want.
Speaker 1 (07:53):
We only have a couple of minutes left, so a
lot of potential. We only have a couple of minutes left.
So I want to jump in here. Emily did ask
you what the price would be. Remember Danone offered twenty
seven dollars per share in their acquisition proposal. They called
it highly attractive. What number is fair to you?
Speaker 2 (08:11):
I'm not going to name a number.
Speaker 3 (08:12):
The board and the you know consultants, the investment bankers
and the board will have that determination. But I can
tell you you could look at some of the recent
transactions and the valuations there and I'll name Poppy Simple Mills,
of which LifeWay was an early investor in and we
benefited greatly from But take a look at the Simple
Mills valuations, take a look at Lesser Evil, take a
(08:35):
look at rx bar and these organics. I mean, I
can continue to name other companies in MySpace and the
valuations that are there. That is, I am absolutely disagree
that they are offering an attractive offer. They're offering an
offer that only benefits to non and the again, the
contract is illegal.
Speaker 2 (08:54):
Let's run a fair process, you know.
Speaker 1 (08:58):
I do want to touch a little bit and some
of the other points that Denon made in their argument.
This idea that compensation they note, accounts for more than
potential compensation, rather would account for more than all of
life waste net income. How would you respond to that?
They say, together with the severance and retention figures.
Speaker 3 (09:18):
I mean, I feel that that's the pot calling the
cattle black. I would say, take a look at their compensation.
I mean I think that you know, there's I mean,
I think everyone deserves to be compensated fairly, and my
team is no different than their team.
Speaker 1 (09:37):
Let's switch gears a little bit. I think we covered
this latest and I know this will be ongoing very
briefly before we switch gears. When do you anticipate this
to be out of the courts and they're there to
be a decision?
Speaker 2 (09:48):
Oh, I can't predict what the court's timeline is. You
know that that's up to the courts.
Speaker 1 (09:54):
You think it'll be years though.
Speaker 2 (09:56):
I can't. I don't have a crystal.
Speaker 1 (09:58):
Bonding o idea. Okay.
Speaker 3 (10:00):
I know that we're going to continue to control what
we can control, which is continue to build the business.
Speaker 2 (10:04):
That's what I'm focused on. Well, let's talking the category.
Speaker 1 (10:08):
Let's talk a little bit about that because last time
you were on you spoke a lot about farmer cheese
and the growing category there. What's the product pipeline look
like when you want to branch out from Kiefer.
Speaker 3 (10:17):
Yeah, this is really exciting because Farmer's cheese is one
of the hottest things happening right now.
Speaker 2 (10:21):
It is a kind of a product of the moment.
Speaker 3 (10:24):
As you know, cottage shees really became viral recently. We
saw this trend and demand for soft on ripened cheese
is like cottage cheese. This is sort of like a
blended cottage sheeese already, So it's a recipe hack and because.
Speaker 2 (10:37):
Of like the high demand.
Speaker 3 (10:39):
I mean, you have to be under a rock to
see the demand for high quality bioavailable protein is off
the charts, and this offers a tremendous amount of protein people.
You know, even Bethany Frankel is raving about it and
sharing it on her Instagram. She paired it with caviar
on a crisp. Looks great. But you know, there is
a sort of a buzz around Farmer's Cheese, so much
(11:00):
so that we've already started shipping into fourteen hundred Albertson
stores around the country, and we have commitments for another
two thousand distribution points for farmers cheese and mass market.
This is the first time we're scaling a legacy product.
This was product number one and two along with the
original Keefer that we launched, So this is a product
we're the number one manufacturers and farmers cheese. So not
(11:21):
only are we the category leader of Keifer, but we're
also the category leader of farmers Cheese. We're going to
see a lot more about this in the coming weeks
and months out of LifeWay and on your grocery soource shelf.
Speaker 4 (11:33):
Are Americans coming back to dairy because milk, almond milk,
all of those trends were very popular. But obviously, you
know this is a dairy product.
Speaker 2 (11:43):
Absolutely yeah.
Speaker 3 (11:44):
Well it's a fermenta dairy, which is not the same
as just regular milk. Fermenta dairy offers a tremendous amount
of extra benefits. There are peptides that are released when
through the fermentation process. Those peptides create a healthy microbiome
in your gut. They restore all Keifer helps restore all of.
Speaker 2 (12:07):
The good bacteria.
Speaker 3 (12:09):
And consumers are starting to learn about the microbiome and
the importance of fermented dairy and you know, they are
getting going to the shelf and they're recognizing that there
are a lot of options on the shelf. But you know,
this is not just a fad or a trend. Keifer Again,
it's been around for two thousand years, it's been this
(12:30):
the product of intense study for over one hundred years,
but it's really just now hitting mass market and people
are starting to make the connection and the tipping point
that you know, food is medicine or or it's poison.
You can use food to heal your body, and that's
what LifeWay keifer does. It heals the body, and that's
something that's really special and it's authentic. This is a
(12:51):
recipe that was brought by my family to this country,
and so it's the it's the original. It's the og
of Keifer of probiotics. We were the first to talk
about probiotics. And you know, most of the disease in
our body, most of our budget in our healthcare is
from diseases of lifestyle. Keifer can actually help prevent some
(13:13):
of those diseases of lifestyle. This is an important piece
of health that all of us should be integrating from
from cradle to senior.
Speaker 2 (13:22):
Keefer Life Weykeeper is for everyone.
Speaker 3 (13:25):
And you know, it reduces inflammation in the body, which
is the cause of almost all disease is because of
inflammation and dysbiosis in the gut. And we're learning that
and people are starting to understand. And it's available everywhere
from Walmart to Target, to Amazon to Whole Foods. You know,
we're in club stores, we're in mass market grocery to
(13:45):
ultra premium, and so there is something for everyone, and
our goal is to democratize it to make it accessible
and available to everyone, not just in America, but we're
you know, we ship all over and make sure that
as many people have access to life.
Speaker 2 (13:59):
Weykeeper.
Speaker 1 (14:00):
I'm curious the shares are down about eight point seven
percent so far this year. They're still shi if by
five dollars of the acquisition price that Danone offered back
in November of twenty twenty four, of twenty seven dollars
per share. What do you think investors are missing with
this story?
Speaker 3 (14:17):
Well, I would yeah, I mean, I would take a
look at the five year five year history and the
trajectory we have brought the company from a dollar fifty
to you know, whatever it is today, twenty five dollars.
That's twelve hundred percent growth. Our ebitdah has gone from
three million dollars to twenty seven dollars, and we are
on target to continue to forty five dollars plus in.
Speaker 2 (14:40):
Twenty twenty seven.
Speaker 3 (14:42):
We've doubled our We've grown our gross profit one hundred percent.
We've grown our growth margin by three hundred basis points,
more than three hundred basis points. I mean, you know,
we are just starting to hit our stride and we
have invested in our equipment and capacity. We have great capacity,
(15:06):
we have you know, the ability to we have a
strong a strong balance sheet. We have no debt, we
have cash in the bank, we have a great team,
we have a you know, incredible demand for our product
that we manufacture ourselves.
Speaker 2 (15:22):
We have access to capital.
Speaker 1 (15:25):
We the list goes on.
Speaker 2 (15:26):
Ready, the list goes on.
Speaker 1 (15:28):
We only have we only have a minute left. And
I know, I know Emily has another question. I just
do want to point out. I'm looking at the five
year chart. It's up eight hundred and seventy two in
the last five years. Shares five years ago, we're trading
at two dollars and twenty seven cents. That was on
June eleventh, twenty twenty. That was the five year low.
Up now to twenty two dollars and sixty four cents
(15:48):
where shares are now.
Speaker 2 (15:49):
Quick questions.
Speaker 3 (15:50):
We're a brand that sets the moment, and I was
gonna say, we're a brand that meets the moment and
a brand on the move.
Speaker 2 (15:55):
As you could see.
Speaker 4 (15:57):
Speaking of on the move, everyone's talking about inflation. Do
you feel like LifeWay Foods is feeling the pressure that
you'll have to raise prices just to keep up with
competition and keep up with inflation.
Speaker 3 (16:08):
I mean, that's something that we've navigated and managed for Over.
You know, thirty nine years, we're about to hit our
fortieth anniversary. So we've seen these kinds of things in
the market and it's something that we're used to. We
still have a lot of price elasticity. Again, we are
ninety five percent of the key for category, and you know,
if we need to raise prices, we certainly will. We
know that when consumers are feeling the pinch in the
(16:31):
rest of you know, other categories and things household good
items and other things that are essential, they do tend
to go back to the grocery store and go.
Speaker 2 (16:41):
Back to the essentials like LifeWay brands.
Speaker 3 (16:43):
They know, brands they trust, and especially brands that have
a functional element that are offering them some benefits like
Lifewaykeeper does. So you know, we are battle tested. We've
been through so many various elements.
Speaker 2 (16:56):
But you know, we've.
Speaker 3 (16:57):
Managed a global pandemic, a global supply chain shortage, and
a global labor shortage and it really worked our advantage
and I have no doubt that the same will be
true as we look to the future.
Speaker 1 (17:10):
Julie, appreciate you taking the time in joining us once again.
Please do come back, don't be a stranger. Keep us
up to date on everything happening at the company. Julie
Smolanski CEO of Lifewave Foods. She is also chairman of
the board as well as president at the company. She
joins us from Los Angeles. A reminder, three hundred and
(17:31):
fifty million dollar market cap maker of Kiefer Farmer cheese
and more.
Bloomberg Audio Studios, Podcasts, radio news. You're listening to Bloomberg
Business Week with Carol Masser and tim Stenoveek on Bloomberg Radio.
I want to bring back Julie Smolanski. She's CEO of
Lifewave Foods. She's been on with us in the past. Well,
I've spoke to her back in December. The company LifeWay Foods.
(00:23):
You might know it if you're a listener, if you're
a viewer, or if you've been to a grocery store
because to three hundred fifty million dollar market cap. They
make keifer and farm cheese, so you might have seen
their products on the shelves. They reported earnings earlier this week, Tuesday,
they came out with the numbers. The market reaction was
on Wednesday, share surged to hire by more than fourteen
(00:44):
and a half percent. The company reported a forty four
percent year every year increase in earnings per share, Net
sales up three point three percent year over year, and
it was the twenty second quarter of consecutive growth under
Julie's leadership. Julie joins us once again from Los Angeles. Julie,
there's a lot to talk about. I mentioned that you
(01:05):
were on with us back in December to discuss the
company rejecting an unsolicited offer, a takeover offer by Denown
North America. What is the status of the back and
forth now between the two companies.
Speaker 2 (01:17):
Well, we are in.
Speaker 3 (01:19):
Court and we are working to defend this hostile takeover.
It's a classic David and Goliath story. But you know this,
their offer farly undervalues the company, and we're fighting for
all shareholders and we know that we're at the tipping
point right now. We have, you know, a strong balance
(01:42):
sheet and we're not a distressed company. So you know,
we feel that the offer is really undervalues us, and
we feel that the reason why they think that they
can take us over in a hostile manner are the
very contract that we're disputing is invalid. It's against Illinois
(02:05):
state law. All shareholders did not agree to it, and
uh it gives a minority shareholder control over management and
board decisions. So we believe that the Cook County courts
will side with us. And this situation is really unprecedented,
and you know, we're fighting against the largest B corp
(02:26):
in the world who's behaving like an activist. It's it's
unprecedented Uh, and it's not something we typically see in
the natural food industry at a time when you know,
other companies are being valued at exceptional rates. We just
saw Poppy being acquired by Pepsi for a billion two
billion dollars. You know, we're in the probiotic space. We
(02:48):
have a lot of science behind our product. Uh, in
two thousand years of history. This is not a fad,
This is not a trend. This is a two thousand
year old staple product that my ancestor is, my great
great grandparents, grandmothers, you know, developed and protected and you know,
my father brought Keefer to America and he pioneered this
(03:13):
and we pioneered this. LifeWay is the premier keyfer company
in the world, and so it's no surprise to me
that they want to steal us. But you know, I'm
going to make sure that all shareholders benefit from a
good value of our company, one that we know and
you know we're on targets to strong, continued, strong performance.
Speaker 1 (03:34):
Well, I do want to say you sent a message
out on social media earlier saying that you would be
on our program. A little later, you cause said you
were going to defend LifeWay. Kafir against corporate raiders and bullies,
and you called it shameful when the largest B corporation
in the world behaves like greedy hedge funds. Denone did
send us a response to that, a lengthy response. I'm
(03:55):
going to read from it and get your reply. It says,
in part, Julie Smolansky's out delegations against denown are false
and detached from reality. There's no raid or hostile bid
since LifeWay's board decided in November twenty twenty four to
reject Denown's highly attractive twenty seven dollars per share acquisition proposals,
depriving LifeWay shareholders of a very significant premium. Denote has
(04:18):
been a major shareholder in LifeWay for more than twenty
five years and is defending a legally binding shareholder agreement.
The statement continues to say, the only greed demonstrated here
is by miss Molansky at the expense of LifeWay's public shareholders.
How do you respond to that?
Speaker 3 (04:34):
I think the language speaks for that's for themselves, for itself.
Speaker 2 (04:40):
You know this shareholder agreement is illegal.
Speaker 3 (04:44):
Many lawyers have looked at it, as well as Illinois
legislators have looked at it and have all agreed it's illegal, improper,
and it harms LifeWay, it harms the public at large,
It benefits nobody but Danin and it we believe it's void,
and the courts will you know, will work through that
(05:07):
in the courts. But you know, they themselves are on
the record is saying that they're going to make a move,
that they're making a move on Keifer in the United States.
They have already christened their hostile takeover by example of
their photograph on the front page of their annual report
with Activia Keifer. They already have shared their plans and
(05:29):
that those plans are to wipe us off the face.
Speaker 2 (05:32):
Of the earth and get rid.
Speaker 3 (05:34):
Of our brand and take over the space. You know,
they're in enable to grow organically on their own, so
they do this with This is a standard operating procedure
for them, and you can see that by the debacle
of their Horizon takeover, their their White Wave takeover, their
Wallaby takeover. They have a history of corporate rating and
(05:57):
I don't think farmers in America or our community here
in America or around the world, you know, is going
to benefit from such actions.
Speaker 2 (06:06):
And we will continue to defend them and I'm not
going to be bullied.
Speaker 1 (06:10):
We're speaking with Julie Smolanski, CEO of a Lifewave Food.
She's also chairperson the board and president of the company.
Speaker 4 (06:17):
Julia, I'm wondering if there is a price that is
fair for potentially a merger, would you be open to
that if the price was right, and what would it be.
Speaker 3 (06:29):
We are open to any offer that makes sense for
all shareholders, that values the company in a proper way,
in a way that also looks at the potential and
the growth. When there is a tipping point right now
in food and they know it, which is why they're
trying to take this over and steal.
Speaker 2 (06:46):
This because they know it. We own ninety five percent.
Speaker 3 (06:49):
Of the most hottest global categories in the world. Kiefer
is the subject of intense science and research studies all
around the world. Just recently a couple of months ago
out of Boston, they did a long, long study of
over thirty years that followed one hundred and thirty thousand
people and found that people who consumed probiotic fermented dairy
(07:14):
foods like found in LifeWay Keefer were able to reduce
coalon cancer by twenty to thirty percent. This is groundbreaking research.
We also know that Keifer can help prevent ADHD. We've
seen research showing that we have seen the mind gout
access and the way that Keifer can help reduce stress,
depression and anxiety through the vegas nerve. There is a
(07:36):
skin gut access. We know that Keifer's beneficial to the skin.
This is just science and research back so you know
in the GLP one conversation, just to throw that one,
and we have a high quality, bioavailable protein product loaded
with calcium nutrients that people want.
Speaker 1 (07:53):
We only have a couple of minutes left, so a
lot of potential. We only have a couple of minutes left.
So I want to jump in here. Emily did ask
you what the price would be. Remember Danone offered twenty
seven dollars per share in their acquisition proposal. They called
it highly attractive. What number is fair to you?
Speaker 2 (08:11):
I'm not going to name a number.
Speaker 3 (08:12):
The board and the you know consultants, the investment bankers
and the board will have that determination. But I can
tell you you could look at some of the recent
transactions and the valuations there and I'll name Poppy Simple Mills,
of which LifeWay was an early investor in and we
benefited greatly from But take a look at the Simple
Mills valuations, take a look at Lesser Evil, take a
(08:35):
look at rx bar and these organics. I mean, I
can continue to name other companies in MySpace and the
valuations that are there. That is, I am absolutely disagree
that they are offering an attractive offer. They're offering an
offer that only benefits to non and the again, the
contract is illegal.
Speaker 2 (08:54):
Let's run a fair process, you know.
Speaker 1 (08:58):
I do want to touch a little bit and some
of the other points that Denon made in their argument.
This idea that compensation they note, accounts for more than
potential compensation, rather would account for more than all of
life waste net income. How would you respond to that?
They say, together with the severance and retention figures.
Speaker 3 (09:18):
I mean, I feel that that's the pot calling the
cattle black. I would say, take a look at their compensation.
I mean I think that you know, there's I mean,
I think everyone deserves to be compensated fairly, and my
team is no different than their team.
Speaker 1 (09:37):
Let's switch gears a little bit. I think we covered
this latest and I know this will be ongoing very
briefly before we switch gears. When do you anticipate this
to be out of the courts and they're there to
be a decision?
Speaker 2 (09:48):
Oh, I can't predict what the court's timeline is. You
know that that's up to the courts.
Speaker 1 (09:54):
You think it'll be years though.
Speaker 2 (09:56):
I can't. I don't have a crystal.
Speaker 1 (09:58):
Bonding o idea. Okay.
Speaker 3 (10:00):
I know that we're going to continue to control what
we can control, which is continue to build the business.
Speaker 2 (10:04):
That's what I'm focused on. Well, let's talking the category.
Speaker 1 (10:08):
Let's talk a little bit about that because last time
you were on you spoke a lot about farmer cheese
and the growing category there. What's the product pipeline look
like when you want to branch out from Kiefer.
Speaker 3 (10:17):
Yeah, this is really exciting because Farmer's cheese is one
of the hottest things happening right now.
Speaker 2 (10:21):
It is a kind of a product of the moment.
Speaker 3 (10:24):
As you know, cottage shees really became viral recently. We
saw this trend and demand for soft on ripened cheese
is like cottage cheese. This is sort of like a
blended cottage sheeese already, So it's a recipe hack and because.
Speaker 2 (10:37):
Of like the high demand.
Speaker 3 (10:39):
I mean, you have to be under a rock to
see the demand for high quality bioavailable protein is off
the charts, and this offers a tremendous amount of protein people.
You know, even Bethany Frankel is raving about it and
sharing it on her Instagram. She paired it with caviar
on a crisp. Looks great. But you know, there is
a sort of a buzz around Farmer's Cheese, so much
(11:00):
so that we've already started shipping into fourteen hundred Albertson
stores around the country, and we have commitments for another
two thousand distribution points for farmers cheese and mass market.
This is the first time we're scaling a legacy product.
This was product number one and two along with the
original Keefer that we launched, So this is a product
we're the number one manufacturers and farmers cheese. So not
(11:21):
only are we the category leader of Keifer, but we're
also the category leader of farmers Cheese. We're going to
see a lot more about this in the coming weeks
and months out of LifeWay and on your grocery soource shelf.
Speaker 4 (11:33):
Are Americans coming back to dairy because milk, almond milk,
all of those trends were very popular. But obviously, you
know this is a dairy product.
Speaker 2 (11:43):
Absolutely yeah.
Speaker 3 (11:44):
Well it's a fermenta dairy, which is not the same
as just regular milk. Fermenta dairy offers a tremendous amount
of extra benefits. There are peptides that are released when
through the fermentation process. Those peptides create a healthy microbiome
in your gut. They restore all Keifer helps restore all of.
Speaker 2 (12:07):
The good bacteria.
Speaker 3 (12:09):
And consumers are starting to learn about the microbiome and
the importance of fermented dairy and you know, they are
getting going to the shelf and they're recognizing that there
are a lot of options on the shelf. But you know,
this is not just a fad or a trend. Keifer Again,
it's been around for two thousand years, it's been this
(12:30):
the product of intense study for over one hundred years,
but it's really just now hitting mass market and people
are starting to make the connection and the tipping point
that you know, food is medicine or or it's poison.
You can use food to heal your body, and that's
what LifeWay keifer does. It heals the body, and that's
something that's really special and it's authentic. This is a
(12:51):
recipe that was brought by my family to this country,
and so it's the it's the original. It's the og
of Keifer of probiotics. We were the first to talk
about probiotics. And you know, most of the disease in
our body, most of our budget in our healthcare is
from diseases of lifestyle. Keifer can actually help prevent some
(13:13):
of those diseases of lifestyle. This is an important piece
of health that all of us should be integrating from
from cradle to senior.
Speaker 2 (13:22):
Keefer Life Weykeeper is for everyone.
Speaker 3 (13:25):
And you know, it reduces inflammation in the body, which
is the cause of almost all disease is because of
inflammation and dysbiosis in the gut. And we're learning that
and people are starting to understand. And it's available everywhere
from Walmart to Target, to Amazon to Whole Foods. You know,
we're in club stores, we're in mass market grocery to
(13:45):
ultra premium, and so there is something for everyone, and
our goal is to democratize it to make it accessible
and available to everyone, not just in America, but we're
you know, we ship all over and make sure that
as many people have access to life.
Speaker 2 (13:59):
Weykeeper.
Speaker 1 (14:00):
I'm curious the shares are down about eight point seven
percent so far this year. They're still shi if by
five dollars of the acquisition price that Danone offered back
in November of twenty twenty four, of twenty seven dollars
per share. What do you think investors are missing with
this story?
Speaker 3 (14:17):
Well, I would yeah, I mean, I would take a
look at the five year five year history and the
trajectory we have brought the company from a dollar fifty
to you know, whatever it is today, twenty five dollars.
That's twelve hundred percent growth. Our ebitdah has gone from
three million dollars to twenty seven dollars, and we are
on target to continue to forty five dollars plus in.
Speaker 2 (14:40):
Twenty twenty seven.
Speaker 3 (14:42):
We've doubled our We've grown our gross profit one hundred percent.
We've grown our growth margin by three hundred basis points,
more than three hundred basis points. I mean, you know,
we are just starting to hit our stride and we
have invested in our equipment and capacity. We have great capacity,
(15:06):
we have you know, the ability to we have a
strong a strong balance sheet. We have no debt, we
have cash in the bank, we have a great team,
we have a you know, incredible demand for our product
that we manufacture ourselves.
Speaker 2 (15:22):
We have access to capital.
Speaker 1 (15:25):
We the list goes on.
Speaker 2 (15:26):
Ready, the list goes on.
Speaker 1 (15:28):
We only have we only have a minute left. And
I know, I know Emily has another question. I just
do want to point out. I'm looking at the five
year chart. It's up eight hundred and seventy two in
the last five years. Shares five years ago, we're trading
at two dollars and twenty seven cents. That was on
June eleventh, twenty twenty. That was the five year low.
Up now to twenty two dollars and sixty four cents
(15:48):
where shares are now.
Speaker 2 (15:49):
Quick questions.
Speaker 3 (15:50):
We're a brand that sets the moment, and I was
gonna say, we're a brand that meets the moment and
a brand on the move.
Speaker 2 (15:55):
As you could see.
Speaker 4 (15:57):
Speaking of on the move, everyone's talking about inflation. Do
you feel like LifeWay Foods is feeling the pressure that
you'll have to raise prices just to keep up with
competition and keep up with inflation.
Speaker 3 (16:08):
I mean, that's something that we've navigated and managed for Over.
You know, thirty nine years, we're about to hit our
fortieth anniversary. So we've seen these kinds of things in
the market and it's something that we're used to. We
still have a lot of price elasticity. Again, we are
ninety five percent of the key for category, and you know,
if we need to raise prices, we certainly will. We
know that when consumers are feeling the pinch in the
(16:31):
rest of you know, other categories and things household good
items and other things that are essential, they do tend
to go back to the grocery store and go.
Speaker 2 (16:41):
Back to the essentials like LifeWay brands.
Speaker 3 (16:43):
They know, brands they trust, and especially brands that have
a functional element that are offering them some benefits like
Lifewaykeeper does. So you know, we are battle tested. We've
been through so many various elements.
Speaker 2 (16:56):
But you know, we've.
Speaker 3 (16:57):
Managed a global pandemic, a global supply chain shortage, and
a global labor shortage and it really worked our advantage
and I have no doubt that the same will be
true as we look to the future.
Speaker 1 (17:10):
Julie, appreciate you taking the time in joining us once again.
Please do come back, don't be a stranger. Keep us
up to date on everything happening at the company. Julie
Smolanski CEO of Lifewave Foods. She is also chairman of
the board as well as president at the company. She
joins us from Los Angeles. A reminder, three hundred and
(17:31):
fifty million dollar market cap maker of Kiefer Farmer cheese
and more.
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Tim Stenovec
Carol Massar
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