As consumer interest in probiotics grows, a small fermented milk beverage company is emerging as a major beneficiary. Lifeway Foods, known for its kefir—a dairy drink akin to yogurt—reported record annual sales of $160 million in 2023, marking a 13% increase from the previous year. Founded in 1986 by Michael Smolyansky, a Jewish immigrant from Ukraine, Lifeway began in his Illinois home. After Michael’s passing in 2002, his daughter Julie took over the company, becoming the youngest female CEO of a publicly traded company at just 27 years old.
Throughout her leadership, Lifeway has navigated significant shifts in the food industry. The year 2020 presented an opportunity for the company to expand its reach, as consumers became more interested in health-focused foods and beverages. “We brought a lot of consumers into the Lifeway family since the pandemic began,” Julie noted. “We learned about what’s important to them and how they incorporate kefir into their cooking and smoothies.”
Despite Lifeway’s sales surge, the company faces increasing competition from plant-based alternatives as consumers search for healthier options. Julie Smolyansky pointed out that many plant-based products claiming nutritional benefits often lack the gut health advantages provided by dairy, and they tend to be less sustainable to produce. She emphasized that people choose kefir to aid digestion, especially those suffering from Crohn’s disease and IBS. The global probiotics market is anticipated to reach $106 billion by 2029, growing at a compound annual growth rate of 8.2%, according to Markets and Markets.
Julie also highlighted that kefir is not the only product at Lifeway witnessing a surge in popularity. The company also offers Farmer Cheese, which she likens to “blended cottage cheese.” She noted that this product is gaining traction as more people experiment with functional ingredients in their home cooking. “With today’s trends around the demand for high protein foods, real nutrition, and satiation, Farmer Cheese is a great bridge to an emerging trend in the dairy aisle,” she stated. “It’s an excellent alternative to cream cheese for spreading on a bagel.”
The story of Lifeway is not without its family conflicts. In 2022, Julie’s mother and brother, Ludmila and Edward, who collectively held 38% of the company, urged the board to remove Julie from her CEO position. Julie declined to comment on the family dispute. Last year, shareholder David Kanen, with a 4.1% stake in the company, accused the board and CEO of “mismanaging the business.” Lifeway dismissed the “public attack” on its operations, asserting that its strong sales growth in recent years reflects the effectiveness of its leadership.
In addition to its popular kefir, Lifeway is committed to providing products that are rich in nutritional value, including calcium citrate calcium, which supports bone health. Julie noted that the company’s offerings are designed to meet the growing demand for healthier dairy options, ensuring that consumers have access to products that contribute positively to their overall well-being.