The clock is ticking on a potential acquisition by Danone of kefir category leader Lifeway, as the French dairy giant is pressuring company leadership to again discuss a deal that has already been attempted twice in the past year.
According to a SEC filing on August 1, Danone stated that if an agreement to acquire Lifeway isn’t reached by September 15, it plans on voting in favor of a proposal to replace Lifeway’s board of directors put forth by Ludmila and Edward Smolyansky, the mother and brother of current CEO Julie Smolyansky. If “good faith” discussions are ongoing, the deadline may be extended by a week.
The move sets up just over a month of high-stakes maneuvering; in 2024, Lifeway rejected two proposed purchase offers from Danone as undervalued, and the two parties have since sued each other over the interpretation of an agreement reached in 1999 when Danone bought a 23% stake in Lifeway.
But in late June 2025, representatives of Lifeway initiated discussions with Danone with the intent to “reset” the relationship and reopen negotiations, per the SEC filing. On August 1, Danone and Lifeway entered into a confidentiality agreement to facilitate further due diligence.
That’s all against the backdrop of a simmering family squabble, with Ludmilla and Edward Smolyansky, both of whom were fired from Lifeway in 2022 but retain a 40% stake in the company, seeking to oust Julie.
Former Lifeway COO Edward, who is launching a separate kefir brand Pure Culture, had put forth the proposal to replace Lifeway’s board through a consent-statement solicitation, a process requesting shareholders to approve an action outside of annual meetings, that was scheduled to close Friday but will now remain open, he told Barron’s.
In a statement provided to BevNET, Lifeway representatives said “Lifeway’s Board of Directors has acted and will continue to act in the best interests of its shareholders, including a sale of the company at a price that reflects a fair value of our business and brand. With this context, our top priority is to deliver the products to consumers that have made Lifeway the undisputed leader in our category.”