01:26 PM EDT, 07/19/2024 (MT Newswires) -- (Updates with Lifeway Foods' ( LWAY ) comments in the fifth paragraph.)

Two of Lifeway Foods' ( LWAY ) largest shareholders on Thursday called for the resignation of the board and Chief Executive Julie Smolyansky.

Ludmila and Edward Smolyansky, who are the mother and brother of Julie Smolyansky, own 29% of the organic food company.

The shareholders said in statement they are seeking a new independent company with up to eight members, including co-founder and former board member Ludmila Smolyansky, as well as an "anti-nepotism policy" to be added to Lifeway's bylaws and an "operational and strategic review" of the business.

"Lifeway suffers from a pattern of retrenching and silence when faced with criticism, and mediocre results, often doubling down on past failures," Edward Smolyansky said in the statement. "Lifeway's narcissistically driven inability to self-reflect makes it impossible for the brand to achieve its full potential and value in the short and long term."

"Lifeway is performing at historic, record-breaking levels," a Lifeway spokesperson told MT Newswires on Friday. "Lifeway's leadership and board are proud of the incredible growth the brand has achieved since Edward Smolyansky's departure and seek to continue building upon the company's recent success."

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