<SEC-DOCUMENT>0001999371-25-010197.txt : 20250729
<SEC-HEADER>0001999371-25-010197.hdr.sgml : 20250729
<ACCEPTANCE-DATETIME>20250729172411
ACCESSION NUMBER:		0001999371-25-010197
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250729
DATE AS OF CHANGE:		20250729

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Lifeway Foods, Inc.
		CENTRAL INDEX KEY:			0000814586
		STANDARD INDUSTRIAL CLASSIFICATION:	DAIRY PRODUCTS [2020]
		ORGANIZATION NAME:           	04 Manufacturing
		EIN:				363442829
		STATE OF INCORPORATION:			IL
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-42398
		FILM NUMBER:		251163107

	BUSINESS ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053
		BUSINESS PHONE:		847-967-1010

	MAIL ADDRESS:	
		STREET 1:		6431 W OAKTON
		CITY:			MORTON GROVE
		STATE:			IL
		ZIP:			60053

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LIFEWAY FOODS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>lway-defa14a_072925.htm
<DESCRIPTION>SOLICITING MATERIAL
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<P STYLE="font: 1pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE 14A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Proxy Statement Pursuant to Section 14(a) of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">the Securities Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Amendment No. )</P>

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    <TD COLSPAN="2">Filed by the Registrant &#9746;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2">Filed by a Party other than the Registrant &#9744;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2">Check the appropriate box:</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&#9744;</TD>
    <TD>Preliminary Proxy Statement</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&#9744;</TD>
    <TD><B>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&#9744;</TD>
    <TD>Definitive Proxy Statement</TD></TR>
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    <TD>&#9744;</TD>
    <TD>Definitive Additional Materials</TD></TR>
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    <TD>Soliciting Material under &sect;240.14a-12</TD></TR>
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    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 16pt"><B>Lifeway Foods, Inc.</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Name of Registrant as Specified In Its Charter)</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-top: black 1pt solid; text-align: center">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD></TR>
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    <TD COLSPAN="2">Payment of Filing Fee (Check all boxes that apply):</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&#9746;</TD>
    <TD>No fee required</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&#9744;</TD>
    <TD>Fee paid previously with preliminary materials</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&#9744;</TD>
    <TD>Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0; text-align: center"><B>Lifeway Foods Acknowledges ISS Recommendation to
Reject Dissident Campaign</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">Morton Grove, IL &ndash; July 29, 2025 &ndash; Lifeway Foods, Inc. (NASDAQ:
LWAY), a leading U.S. supplier of kefir and fermented probiotic products, today announced that Institutional Shareholder Services Inc.
(ISS), a leading independent proxy advisory firm, has recommended that shareholders &ldquo;DO NOT VOTE&rdquo; in connection with the ongoing
dissident-led consent solicitation.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">In its report, ISS concluded that &ldquo;the dissident has not presented
a compelling case for change&rdquo; and advised shareholders to &ldquo;DO NOT VOTE&rdquo; on all proposals put forth by Ludmila and Edward
Smolyansky and their aligned group.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">&ldquo;We appreciate ISS&rsquo;s thorough review and are pleased that their
recommendation supports our belief that this consent solicitation is unwarranted, disruptive and not in the best interest of Lifeway shareholders,&rdquo;
said Julie Smolyansky, CEO and Chair of Lifeway Foods.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">The ISS analysis noted that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"> &ndash; Lifeway&rsquo;s &ldquo;financial performance has been
directionally positive&rdquo; and its &ldquo;share price [has] rallied over the preceding year on multiple positive earnings
announcements,&rdquo; with total shareholder return significantly outperforming peers in the Russell 3000 Food Producers Index.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"> &ndash; The dissident group&rsquo;s critiques &ldquo;are
generally presented without adequate context,&rdquo; and the dissident group &ldquo;does not clearly establish how various
developments have actually impacted shareholder returns.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"> &ndash; The dissident group &ldquo;has not presented a plan should
it successfully secure a majority of board seats&rdquo; for governance or operational improvement.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">&ndash; The dissident nominees include individuals who previously contributed to governance concerns during their past tenures at the
Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">&ldquo;The Lifeway Board and management team remain focused on maximizing
shareholder value and will continue to pursue all opportunities to drive additional value,&rdquo; added Smolyansky. &ldquo;We encourage
shareholders to follow ISS&rsquo;s guidance and take no action on the consent solicitation.&rdquo;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>About Lifeway Foods, Inc.</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">Lifeway Foods, Inc., which has been recognized as one of Forbes&rsquo;
Best Small Companies, is America&rsquo;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&rsquo;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.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Important Additional Information</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">The Company intends to file a proxy statement on Schedule 14A, an accompanying
BLUE proxy card and other relevant documents with the U.S. Securities and Exchange Commission (the &ldquo;SEC&rdquo;) in connection with
the solicitation of proxies from the Company&rsquo;s shareholders for the Company&rsquo;s 2025 annual meeting of shareholders. THE COMPANY&rsquo;S
SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ THE COMPANY&rsquo;S DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO),
THE ACCOMPANYING BLUE PROXY CARD AND ALL OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and shareholders may obtain a copy of the definitive proxy statement, an accompanying
BLUE proxy card, any amendments or supplements to the definitive proxy statement and other documents filed by the Company with the SEC
at no charge at the SEC&rsquo;s website at www.sec.gov. Copies will also be available at no charge by visiting the &ldquo;Investor Relations&rdquo;
tab of the Company&rsquo;s website at http://lifewaykefir.com/investor-relations/. The Company may file a consent revocation statement,
in which case all references to a proxy statement, proxies, proxy cards and solicitation of proxies referenced in this &ldquo;Important
Additional Information&rdquo; section and the &ldquo;Participants in the Solicitation&rdquo; section below shall be deemed to refer to
such consent revocation statement, consent revocations, revocation cards and solicitation of consent revocations.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"><B>Participants in the Solicitation</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0">The Company, each of its independent directors (Juan Carlos Dalto, Jody
Levy, Dorri McWhorter, Perfecto Sanchez, Jason Scher and Pol Sikar) and certain of its executive officers (Julie Smolyansky, Chief Executive
Officer, President and Secretary, and Eric Hanson, Chief Financial and Accounting Officer and Treasurer) are deemed to be &ldquo;participants&rdquo;
(as defined in Schedule 14A under the Securities Exchange Act of 1934, as amended) in the solicitation of proxies from the Company&rsquo;s
shareholders in connection with matters to be considered at the Company&rsquo;s 2025 annual meeting of shareholders. Information about
the names of the Company&rsquo;s directors and officers, their respective interests in the Company by security holdings or otherwise and
their respective compensation is set forth in the &ldquo;Information About Our Directors and Executive Officers&rdquo; section in Part
III, Item 10 &ndash; Directors, Executive Officers and Corporate Governance of Amendment No. 1 to the Company&rsquo;s Annual Report on
Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on April 29, 2025 (the &ldquo;Form 10-K Amendment&rdquo;), in
Part III, Item 11 &ndash; Executive Compensation of the Form 10-K Amendment and in the &ldquo;Security Ownership of Certain Beneficial
Owners and Management&rdquo; section in Part III, Item 12 &ndash; Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters of the Form 10-K Amendment. Supplemental information regarding the participants&rsquo; holdings of the Company&rsquo;s
securities can be found in SEC filings on Statements of Change in Ownership on Form 4 filed with the SEC on June 18, 2025 for Julie Smolyansky
(available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004590/xslF345X05/ownership.xml">here</A>) and Eric Hanson
(available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004592/xslF345X05/ownership.xml">here</A>) and on July
1, 2025 for each of Pol Sikar (available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004868/xslF345X05/ownership.xml">here</A>),
Juan Carlos Dalto (available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004870/xslF345X05/ownership.xml">here</A>),
Jason Scott Scher (available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004869/xslF345X05/ownership.xml">here</A>),
Dorri McWhorter (available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004865/xslF345X05/ownership.xml">here</A>),
Perfecto Sanchez (available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004863/xslF345X05/ownership.xml">here</A>),
and Jody Levy (available <A HREF="https://www.sec.gov/Archives/edgar/data/814586/000168316825004867/xslF345X05/ownership.xml">here</A>).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Contact:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Perceptual Advisors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dan Tarman</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Email: <B>dtarman@perceptualadvisors.com</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Derek Miller</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Vice President of Communications, Lifeway Foods</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Email: <B>derekm@lifeway.net</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">General inquiries:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Lifeway Foods, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Phone: 847-967-1010</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Email: <B>info@lifeway.net</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 12pt 0 0"></P>

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