Illinois General Assembly - Full Text of HR0057

HR0057 LRB104 09438 MST 19498 r

HOUSE RESOLUTION

WHEREAS, Illinois-based businesses play a critical role in driving economic growth, innovation, and community vitality within the State; and

WHEREAS, Lifeway Foods, Inc., headquartered in Morton Grove, has established itself as a leading producer of probiotic and cultured dairy products, exemplifying excellence in business operations and community engagement; and

WHEREAS, Lifeway Foods, Inc. was founded in 1986 by Michael Smolyansky, who immigrated to the United States from the former Soviet Union with the vision of introducing the health benefits of kefir to the American market; and

WHEREAS, Lifeway Foods, Inc., under the leadership of Julie Smolyansky, has continued to expand and excel, achieving significant milestones as a publicly traded company and as an industry leader in innovative, health-focused food and beverage solutions; and

WHEREAS, Lifeway Foods, Inc. has consistently prioritized excellence, sustainability, and corporate responsibility by delivering high-quality products; and

WHEREAS, Lifeway Foods, Inc. has significantly expanded its global footprint, exporting its products to numerous countries, including Mexico, the Caribbean, South Africa and, as a co-packer, Ireland for further distribution in France, thus showcasing Illinois as a leader in health-focused food manufacturing on the international stage; and

WHEREAS, Lifeway Foods, Inc. entered into a groundbreaking distribution agreement in the United Arab Emirates in November of 2024, bringing its kefir and farmer cheese products to supermarkets and hypermarkets in Dubai and across the Emirates, further cementing its global presence; and

WHEREAS, Exports are vital to the Illinois economy, driving job creation, enhancing global trade relationships, and reinforcing the State's position as an economic leader; and

WHEREAS, Lifeway Foods, Inc. has demonstrated exceptional financial success, achieving record annual net sales of $160.1 million in 2023, representing a 13.1% year-over-year increase, and reporting a net income of $11.4 million, a substantial rise from $0.9 million in 2022; and

WHEREAS, Lifeway Foods, Inc. employs approximately 288 individuals, with a significant portion of its workforce based in Illinois, thereby strengthening the local economy and providing valuable employment opportunities for residents; and

WHEREAS, Lifeway Foods, Inc. has received widespread recognition for its contributions to health and wellness, with its products becoming a staple in households across Illinois and beyond; and

WHEREAS, Lifeway Foods, Inc. and other innovative food manufacturers are essential to the economy of Illinois, driving advancements in the food and beverage sector, fostering sustainability, and contributing to the State's global competitiveness; and

WHEREAS, Lifeway Foods, Inc. has recently been the target of an unsolicited acquisition proposal from Danone North America PBC, which seeks to acquire the remaining shares of Lifeway that it does not already own; and

WHEREAS, Such an acquisition could result in significant operational changes, including potential relocation or restructuring, which might negatively impact the State's workforce and corporate leadership currently provided by Lifeway Foods, Inc.; and

WHEREAS, Maintaining Lifeway Food's independence and Illinois-based operations is crucial for preserving the jobs, innovation, and economic benefits the company delivers to the State; and

WHEREAS, Supporting local businesses and preventing the loss of corporate headquarters to out-of-state entities, which usually diminish economic activity and employment opportunities within Illinois, is vital; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED FOURTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we commend Lifeway Foods, Inc. for its outstanding achievements and invaluable contributions to the State of Illinois, and we celebrate its dedication to excellence, innovation, and community enrichment; and be it further

RESOLVED, That we express our concerns regarding the potential acquisition of Lifeway Foods, Inc. by Danone North America PBC and urge all stakeholders to carefully consider the potential adverse effects on the Illinois economy and workforce; and be it further

RESOLVED, That we reaffirm our commitment to supporting Illinois-based businesses like Lifeway Foods, Inc., especially those founded by immigrants drawn to the freedom of our shores and nurtured in Illinois' economic climate, whose continued success and presence are essential to the State's economic health and prosperity; and be it further

RESOLVED, That a suitable copy of this resolution be presented to Lifeway Foods, Inc. as a testament to our admiration and our best wishes for its continued success as an independent, Illinois-owned company for many years in the future.