Danone proposes acquisition of Lifeway Foods for $283m

Sep 25, 2024
2 min read

Danone SA has made a non-binding proposal to acquire Lifeway Foods, a producer of kefir and probiotic products, for approximately $283 million (or $25 per share).

This offer comes as Lifeway Foods navigates internal leadership disputes and shareholder pressures to explore strategic alternatives.

Danone, which currently holds a 23.4% stake in Lifeway, has expressed confidence in the potential benefits of a merger, citing Lifeway's recent performance and market position.

The proposed acquisition price represents a 59% premium over Lifeway's average share price of $15.74 over the last three months.

In a letter addressed to Lifeway’s CEO Julie Smolyansky, Danone emphasised the advantages of combining operations, suggesting that such a move would enhance Lifeway’s growth opportunities by leveraging Danone’s extensive resources in innovation, distribution and marketing.

The letter highlighted Lifeway's consistent growth trajectory, reporting a 13% increase in annual sales to $160 million in 2023, alongside 19 consecutive quarters of year-over-year growth.

The kefir market has seen increased consumer interest, particularly during the pandemic, as more individuals prioritise gut health. Lifeway’s products, known for their probiotic benefits, have become increasingly popular among consumers seeking digestive health solutions.

However, Lifeway is currently facing significant challenges, including a public family dispute involving its leadership. Critics, including major shareholders, have accused the board and Smolyansky of mismanagement and have called for a sale of the company. This internal strife has raised concerns about Lifeway's governance and strategic direction.

Danone's proposal is part of its broader strategy to enhance its portfolio, particularly within the health-focused dairy segment. The company generated €27.6 billion in sales in 2023 and has positioned itself to capitalize on trends related to gut health and nutritional wellness.

The acquisition would require regulatory approval under US antitrust laws, but Danone does not foresee significant hurdles in securing these clearances. The transaction, if completed, could provide Lifeway shareholders with immediate liquidity and a clear exit strategy amid ongoing governance issues.

As of now, Lifeway has acknowledged receipt of Danone’s proposal and stated it will conduct a thorough review to determine the best course of action.

#Danone #LifewayFoods #kefir #probiotics #acquisition #guthealth

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Leah Smith

8 May 2026

New products

Ella’s Kitchen launches new children's snack range

Ella’s Kitchen is expanding beyond the baby food aisle with the launch of Ella’s Kitchen Kids, a new product line aimed at children aged 18 months and older.

The launch marks a significant strategic move for the brand as it looks to extend its presence beyond the weaning category and capture growing demand for healthier snack options for toddlers and young children.

Positioned as a “better-for-you” alternative to traditional children’s snacks, the new range combines bold flavours, playful branding and convenient formats with the nutritional standards parents associate with the Ella’s Kitchen brand.

The company said the range was developed in response to changing family eating habits and the lack of minimally processed snack options for older toddlers outside the baby aisle.

Initial products include Ella’s Kitchen Kids Crunchy Stix in Cheese + Onion, Tomato + Basil and Pesto varieties, alongside Ella’s Kitchen Kids Wild Crackers available in Tomato + Oregano, Pea + Basil and Carrot + Rosemary flavours.

Designed for lunchboxes, picnics and snacking occasions, the products are formulated with reduced salt levels and classified as non-HFSS options. According to the company, the Crunchy Stix contain less than 0.04g of salt per pack, while the Crackers contain less than 0.05g per serving.

Emma Wood, Senior Brand Manager at Ella’s Kitchen, said: “Ella’s Kitchen Kids is about recognising that the journey doesn’t stop at baby food. As little ones grow, their tastes, independence and routines all change – but parents still want options they can feel good about.”

The launch also signals Ella’s Kitchen’s wider ambitions within the children’s snacking market, with additional products and categories expected later this year.

Wood added that the company aims to help “raise the standards of the kids’ food category” by balancing taste, convenience and nutrition.