Lifeway Foods Responds to Danone’s Latest Hostile Actions
MORTON GROVE, Ill. – March 4, 2025
In a recent press release, Lifeway Foods, Inc. (NASDAQ: LWAY) (“Lifeway” or the “Company”), a leading supplier of kefir and fermented probiotic products in the United States, issued a statement regarding Danone’s (OTCQX: DANOY) most recent predatory actions:
“Danone has continued its hostile behavior in its latest Schedule 13D filed with the Securities and Exchange Commission referencing a lawsuit against Lifeway. Danone’s actions are a clear attempt to undermine Lifeway’s business and value for its shareholders. Lifeway remains committed to its strategic focus on delivering high-quality, innovative probiotic products to its customers and creating long-term value for its shareholders,”
Background of the Conflict
The conflict between Lifeway and Danone began in December 2024 when Danone announced its intention to acquire a significant stake in Lifeway. Danone offered to buy shares at a premium, but Lifeway’s board of directors rejected the offer, stating that it undervalued the company. Since then, Danone has taken several actions to pressure Lifeway to accept the offer, including filing a lawsuit alleging that Lifeway had engaged in securities fraud.
Impact on Lifeway and Its Shareholders
The latest actions by Danone are likely to cause uncertainty and volatility in Lifeway’s stock price. The ongoing legal battle could also distract Lifeway’s management and resources from its core business operations. However, Lifeway’s statement indicates that the company remains focused on delivering value to its shareholders and continuing its strategic initiatives.
Impact on Consumers and the Probiotic Industry
The conflict between Lifeway and Danone could have broader implications for the probiotic industry and consumers. If Danone is successful in its efforts to acquire Lifeway, it could lead to consolidation in the industry and potentially higher prices for consumers. However, it could also result in increased innovation and investment in the probiotic market. It’s too early to tell how this will play out.
Conclusion
The ongoing conflict between Lifeway and Danone is a reminder of the dynamic nature of the business world. As a shareholder or consumer, it’s important to stay informed about developments in the industry and the companies you invest in or rely on for products. Lifeway’s statement indicates that it remains focused on delivering value to its stakeholders and continuing its strategic initiatives, but the outcome of this conflict remains uncertain.
As this is a developing story, we will continue to monitor the situation and provide updates as more information becomes available.
