Lifeway Foods Expands Reach With Walmart Pact

Summary

Podcast Summary: Bloomberg Businessweek – Lifeway Foods Expands Reach With Walmart Pact

Date: December 11, 2025
Hosts: Carol Massar & Tim Stenovec
Guest: Julie Smolensky, CEO of Lifeway Foods

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Overview

This episode of Bloomberg Businessweek spotlights Lifeway Foods, best known for its kefir (a probiotic-rich fermented dairy drink) and now expanding its reach through a major Walmart partnership. Host Tim Stenovec and Carol Massar speak with Julie Smolensky, Lifeway’s dynamic CEO, about the company's record-breaking growth, evolving consumer trends (including the GLP-1 medication boom), product diversification, and recent corporate developments involving French food giant Danone.

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Key Discussion Points & Insights

Lifeway’s Growth & Product Focus

• Record Performance:
  • Lifeway Foods is experiencing the “highest historic year of success ever,” with surging demand for “functional, nutritious, gut-healthy foods, high protein, and not just protein, but high quality bioavailable protein.” (Julie Smolensky, 03:27)
  • Lifeway’s farmer cheese and kefir are leading the portfolio, with plain kefir remaining the top seller.
• Innovation & Tradition:
  • Farmer cheese (“Dvorog” in Eastern Europe) is highlighted as a versatile, high-protein product with deep roots in Slavic culinary traditions.
    • Quote (Julie Smolensky, 05:17):
      “Farmer cheese has been one of our early... product number two. My father made this in Slavic communities, Russia and Ukraine, Eastern Europe... It’s like a soft unripened cheese, I would say the sexier version of cottage cheese.”
  • Lifeway leverages both health trends and cultural nostalgia to increase relevance and reach.

Impact of GLP-1 Medications (e.g., Ozempic, Wegovy)

• Consumer Shift:
  • Rising use of GLP-1 medications (for diabetes and weight loss) is driving demand for high-quality protein products to “prevent muscle loss.”
  • Quote (Julie Smolensky, 04:23):
    “Roughly 15% of Americans are using a GLP-1 right now. And one out of three are curious and considering it next year... consuming high quality bioavailable protein [is] critical.”
  • The trend intersects with a broader uptick in women pursuing strength training.

Walmart Deal & Distribution Growth

• Major Retail Expansion:
  • Lifeway’s products are now available in 2,000 Walmart stores (nationwide) and all Albertsons locations, driving double-digit year-over-year growth for farmer cheese.
  • Quote (Carol Massar, 06:23):
    “You guys are available in what, 2,000 Walmart stores nationwide. That's pretty huge.”
  • Lifeway boasts 24 consecutive quarters (six years) of growth, with 2025 sales at $157 million (up 123% from six years ago).
  • Quote (Julie Smolensky, 06:43):
    “We have year to date from just for 2025. We're at 157 million. That's compared to six years ago. We're up 123%... Our shareholder return is 860%.”

Danone’s Stake & Strategic Directions

• Danone’s Exit:
  • In September, Danone announced it would not pursue the acquisition of Lifeway and began “reviewing alternatives” for its 22.7% stake.
  • Lifeway has set up a strategic review committee to explore “value enhancing opportunities.”
  • Quote (Julie Smolensky, 08:15):
    “We will be looking for alternatives... We’re really focused on our growth right now... number one brand in Mexico.”
• Corporate Governance Changes:
  • As part of the arrangement with Danone, Julie Smolensky continues as CEO but is no longer Chair—a shift designed to enhance governance.

Leadership & Vision

• Long-Term Commitment:

  • Smolensky, CEO for 23 years and daughter of the company’s founder, expresses profound pride and drive, characterizing Lifeway’s current energy as “startup energy, founder energy every single day.”
    • Quote (Julie Smolensky, 09:22):
      “I am very much committed and dedicated to Lifeway... it is my pride and joy. And we have done a tremendous, remarkable job in our growth and I feel like we’re just getting started.”

• Cultural Virality:

  • Lifeway is increasingly entering the “zeitgeist of culture”—for example, becoming a "wordle" answer, sponsoring NASCAR, and launching a “Kefir drone show” in Chicago.
  • Quote (Julie Smolensky, 10:01):
    "We had our very first NASCAR. We had the first ever Kefir drone show in Chicago, which we're going to be making bigger next year... National Kefir Day. So much more to come."

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Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------| | 03:27 | Julie Smolensky | “We’re seeing... record demand for functional, nutritious, gut healthy foods, high protein, and not just protein, but high quality bioavailable protein.” | | 05:17 | Julie Smolensky | “[Farmer cheese is] the sexier version of cottage cheese. It’s already blended, it’s spreadable.” | | 04:23 | Julie Smolensky | “Roughly 15% of Americans are using a GLP1 right now. And one out of three are curious and considering it next year...” | | 06:43 | Julie Smolensky | “We have year to date from just for 2025. We’re at 157 million.... Our shareholder return is 860%.” | | 09:22 | Julie Smolensky | “I am very much committed and dedicated to Lifeway... it’s my pride and joy... it really feels like that startup energy, founder energy every single day.” | | 10:01 | Julie Smolensky | "We were a wordle... had the first ever Kefir drone show in Chicago... National Kefir Day. So much more to come." |

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Timestamps for Important Segments

• [02:10] – Show Intro, Lifeway overview
• [03:27] – Lifeway’s record growth & consumer health trends
• [04:23] – GLP-1 drugs driving interest in protein, company’s response
• [05:17] – Spotlight: Farmer cheese, product innovation rooted in family heritage
• [06:23] – Walmart and Albertsons expansion, historic growth rates
• [07:48] – Discussion on Danone’s stake and future direction
• [09:22] – Leadership commitment, cultural impact, and continued momentum

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Summary

Lifeway Foods is thriving, riding intersecting waves of health-conscious consumer growth, new dietary trends (like GLP-1 usage), and sophisticated distribution partnerships—including a landmark expansion in Walmart stores. CEO Julie Smolensky credits cultural resonance, innovation, and disciplined growth for propelling Lifeway to new heights, while also deftly navigating corporate complexities stemming from Danone’s strategic withdrawal. Smolensky's passion for both her company and the probiotic dairy movement shines throughout, promising “so much more to come.”

(End of summary)

Transcript

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[Julie Smolensky]

Bloomberg Audio Studios Podcasts Radio news.

[Bloomberg Host Tim Stenovec]

You're listening to Bloomberg Business Week with Carol Massar and Tim Stenovec on Bloomberg radio shows of Lifeway Foods. It's the company behind Kefir or kefir depending on how you pronounce it. When you see it at the grocery store, I don't know.

[Bloomberg Host Carol Massar]

You're Captain Yogurt.

[Bloomberg Host Tim Stenovec]

I am Captain Yogurt. They also do probiotic smoothies, farmer's cheese and more. They swung wildly earlier this month. Shares that is so surging as much as 15.7% but falling as much as 7.5% to close lower by 2.5%. That was the day the company reported earnings that trailed and sales that topped estimates for the quarter. I want to bring in Julie Smolensky. She's CEO of the $360 million market cap, LifeWay Food. She joins us from Los Angeles. Julie, good to have you back with us. How are you?

[Julie Smolensky]

Great. Thank you so much for having me.

[Bloomberg Host Tim Stenovec]

Well, thanks for joining us. I want to talk about the state of the company, how you view the consumer. But and then also talk a little bit about the most recent news that you guys have with Danone because you've spent a lot of time on our program talking about that. Let's start with the consumer and where you're seeing areas of growth. Because I know you, last time you spoke with us, you said yes, Kefir is certainly where we're seeing growth, but we're also branching out to other things, including farmer's cheese. Where are the areas of growth for you right now?

[Julie Smolensky]

Yeah, I mean, we're seeing. Thank you so much. Well, Lifeway has never been stronger. We are going to have record growth this year, record, highest historic year of success ever. And we're seeing a record demand for functional, nutritious, gut, healthy foods, high protein, and not just protein, but high quality bioavailable protein. Not all protein is the same and we're seeing it everywhere. But you know, I think smart consumers are really doing deep dives and research into their protein choices and they're going to find that. Yeah, go ahead.

[Bloomberg Host Tim Stenovec]

I'm going to. I know I'm going to steal a question from Carol, but it's the GLP one question that she always asks.

[Bloomberg Host Carol Massar]

Go there, go.

[Bloomberg Host Tim Stenovec]

You know, Sweetgreen announced this like ultra high protein salad recently and it's all about for GLP1 users. It's like 100 grams of protein in a salad.

[Bloomberg Host Carol Massar]

Need it for your muscles.

[Bloomberg Host Tim Stenovec]

Are you seeing this in the move with people on GLP1s? Are you seeing them reach for Kefir?

[Julie Smolensky]

Absolutely. It is critical that people who are on GLP1s and roughly 15% of Americans are using a GLP1 right now. And one out of three are curious and considering it next year. And I think that's gonna be a continued rise in consumer behavior. And we are, there is an absolute necessity in.

Consuming high quality bioavailable protein to make sure that you are preventing muscle loss. And we also see all time high in women using strength and muscle building exercises at an all time high. So there's a lot of kind of trends happening all at the same time. And we're right at the center of that, really meeting the moment at Lifeway.

[Bloomberg Host Carol Massar]

So, you know, I'm just looking at all your products. I mean, what's your money maker? What do you sell the most of.

[Julie Smolensky]

Obviously plain kefir is our number one farmer cheese which we started off the program with. Farmer cheese has been one of our early. It's been product number two. My father made this in Slavic communities, Russia and Ukraine, Eastern Europe. It's Dvorog, which is like a soft unripened cheese kind of, I would say the sexier version of cottage cheese. It's already blended, it's spreadable. It's a great canvas to do a lot. And right now it's our time to shine. With Thanksgiving upon us, we have a whole cheesecake campaign. So you can make a healthy cheesecake with this sweet or savory. I also like to put this on a potato chip and some black caviar. That's my favorite chef's kit.

[Bloomberg Host Tim Stenovec]

That's fanc.

[Julie Smolensky]

Yeah. Very fancy and healthy because again, high quality, real protein, not synthetic lab created protein. Super, super important. So yeah, we are really seeing this kind of intersection of culture and trends and gut health and probiotics all coming together. Protein, high quality dairy is back.

[Bloomberg Host Carol Massar]

Just give me an idea of some growth rates. I'm looking at a release, I think it was from you guys or some research here that your farmer cheese, right, you guys are available in what, 2,000 Walmart stores nationwide. That's pretty huge.

[Bloomberg Host Tim Stenovec]

Huge.

[Bloomberg Host Carol Massar]

But my understanding is it's growing at double digit year over year rates. Is that correct?

[Julie Smolensky]

That is correct. Yeah. We just picked up 2,000 Walmart stores. We're in all of the Albertsons nationwide and we are expanding into other mass market stores. Really kind of following along with Kefir, which we have for 40 years been bringing into mainstream. So our growth is remarkable. We've had 23 quarters, 24 consecutive quarters year over year of growth. That's six full years of growth. We have year to date from just for 2025. We're at 157 million. That's compared to six years ago. We're up 123%. So we are on fire. Our shareholder return backs from six years ago when we announced Lifeway 2.0 plan back in November. Exactly six years ago. Our shareholder return is 860%. So we are really, you know, just again on fire. And this isn't just a trend. This is something that has been long happening like in Eastern Europe. Go ahead.

[Bloomberg Host Tim Stenovec]

Well, I just wanted to. We don't have a ton of time but I wanted to make sure I got into what's been happening lately with the Danone interest because back in September Denone said it will no longer pursue an acquisition of Lifeway and said it's in the process of reviewing alternatives for its investment. It owns, according to the Bloomberg terminal, about 22.7% of the company. You guys said you will continue to explore value enhancing opportunities. You formed a strategic review committee. What's going to happen to Danone's stake?

[Julie Smolensky]

Well, we've registered, they've registered their shares. So, you know, we will be looking for alternatives just like like you said. And you know, we're really focused on our growth right now. We have a lot of opportunities, new products that we've launched, new collaborations and partnerships. We're expanding internationally. We're the number one brand in Mexic.

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[Bloomberg Host Carol Massar]

But Julie, the alternatives that you guys are exploring, does that maybe also include maybe selling to somebody else or are you planning to continue to go it alone?

[Julie Smolensky]

I mean, we believe that we are a strong company, independent, you know, as an independent company. But you know, we always take every offer and evaluate it and, you know, make sure that all shareholders are going to benefit from any kind of transaction.

[Bloomberg Host Tim Stenovec]

Part of the agreement that you made with Danone was that you would separate the chair and CEO roles. So now you're continuing as CEO, you're no longer chair.

[Julie Smolensky]

That's right.

[Bloomberg Host Tim Stenovec]

How, I mean, what, what are you thinking about in terms of, of, of your commitment to the company? Are you staying on as CEO for like how many more years? What's your, what's your plan?

[Julie Smolensky]

I don't have a crystal ball, but I am very much committed and dedicated to Lifeway. My father founded this company and I have been CEO for 23 years and it is my pride and joy. And we have done a tremendous, remarkable job in our growth and I feel like we're just getting started. It really feels like that startup energy, founder energy every single day. I am very excited about some of the things. We've entered the zeitgeist of culture and that's not by accident. That is by strategic marketing, strategic vision and leadership. And.

We were a wordle, a word in wordle. We had our very first nascar. We had the first ever Keeper drone show in Chicago, which we're going to be making bigger next year. National Keeper Day. So much more to come.

[Bloomberg Host Carol Massar]

Okay, okay, we have to go, but we'll have you back soon. Julie Smolensky. She's CEO of Life Weight Foods.

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