Morton Grove Company Expanding Globally

Julie Smolyansky, the CEO of Morton Grove-based Lifeway Products, seems to be everywhere these days.

Last week, news broke that Lifeway, which manufactures kefir, a cultured dairy product somewhat similar to yogurt, is buying Golden Guernsey Dairy in Wisconsin at auction for $7.4 million.

That will enable Lifeway to quadruple its production capacity, according to dailyfinance.com, which also reported the company expects 37.5 percent growth through 2014. 

The week before, Lifeway launched its frozen kefir, an ice cream-type dessert, in the United Kingdom, landing on the shelves of an upscale department store, according to Chicago Business Journal. Smolyansky introduced the frozen version with panache, too, at New York's Fashion Week, the paper said. 

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In April, Smolyansky received the Women of Achievement award from the Anti-Defamation League, as Patch.com earlier reported. 

In February, Smolyansky was on the road again, this time to Washinton, D.C. She had been asked by U.S. Senator Dick Durbin to speak to the Senate Democratic Steering Committee on the topic,  “A Discussion With Job Creators From Across The Nation.”

They discussed ways to create jobs to strengthen America’s economy using proven models, and ideas for tax relief that lowers the cost of doing business, according to Christina Mulka of Sen. Durbin's office.

Smolyansky talked about the experience in this Q&A with Patch.com. 

Patch:  Did they ask you questions during the meeting? If so, what did they ask, and how did you answer? 

Smolyansky: They did not ask questions.  Senator Durbin introduced me and Lifeway Foods and asked me to tell the story of the company, as well as my family story. Additionally he asked me to provide some insights into job creation and growing the economy.

Did you offer a prepared statement?

Smolyansky: I spoke spontaneously. Generally speaking, I told the story of how my family came to the US from the former Soviet Union in 1976 when I was just a year old and my parents were in their 20's. I described how my father found work as an engineer while my mother washed hair at a salon. I described how they opened the first Russian delicatession in Chicago's Rogers Park just two years after settling in the US and how this gave us an entry into the food industry, by which Lifeway Foods was launched in 1986. I talked about how Lifeway prospered until the tragic death of my father in 2002, and how my brother and I were thrown into CEO and CFO roles at the ages of 27 and 22.  Since that time, we have grown from a 12 million dollar 70 person company to almost 100 million dollar company with 360 employees - doubling our growth despite the recession.

I described the fact that integrating healthy foods into our life and making them accessible to every American is an important part in reducing our  health care costs and improving the overall quality of life. As a company, we use modern technology including social media to create and build evangelical customers and engaged communities.

I also discussed the importance of supporting immigrants, women, and young people and elevating them to leadership roles if we want to continue to grow our economy and keep America as a superpower. Immigrants bring their hard work ethic and skills. They buy homes, cars, send their children to school, pay taxes and become job creators – just like my parents. Women offer unique skills that are currently untapped.  Young people today have the ease of using technology that even I, as a 37 year old, sometimes have a hard time keeping up with. Young people offer companies creative out of the box thinking.

The overall theme was that we need teams to be as diverse as our population is. 

How did you feel at being invited to speak on job creation in Washington by a U.S. Senator? 

Smolyansky: It was an honor and very humbling to have been asked to provide insight into job creation and the economy. When I was born in the former Soviet Union, I am certain my parents never dreamed I would be offering commentary on these subjects at the Capital.  If I could offer any insight that could be scaled and could support job creation, grow the economy, create healthier and safer communities where everyone has the chance to contribute -  then I was happy to do so. 

As both an immigrant and a female business leader, I was able to provide insight through the lens of my life, one that is unique.  When only 20 senators are female, and only 20 Fortune 500 companies are female led and 3% of company board seats are filled by females yet all the research shows women led corporations have a better ROI, ROE, ROS, etc. then this is a perspective that leadership in our country does not see or hear from often enough.  

As a company that doubled our workforce and revenue since the recession started, we are living proof that investing into women is very important. Creating environments in which women can balance family with a career is a valuable direction our country must move ahead with if we want to create game changing, disruptive products that keep America strong, as well as communities safe and healthy. Diversity on teams is important not just because “it’s the nice thing to do,” but because it's a matter of national security.  I was especially touched when I looked over at Senator Warren and saw a smile ear to ear as I spoke. It was very encouraging.  As I finished speaking, I received a standing ovation from the attendees and a "here here" from Senator Durbin, as well as several of the other Senators, including Senator Warren.

At several points, I found myself wishing my dad was alive so I could tell him what I was doing.  These are the moments I really miss him and wish he could see what we have done. My father was fascinated with politics and the democratic process of the US. 

Who was present at the meeting? 

Smolyansky: Senate attendees included:

1.    Senate Majority Leader Harry Reid (D NV)

2.    Senate Assistant Majority Leader Dick Durbin (D IL)

3.    Mark Begich (D AK)

4.    Tom Carper (D DE)

5.    Christopher Coons (D DE)

6.    William Cowen (D MA)

7.    Al Franken (D MN)

8.    Mazie Hirono (D HI)

9.    Carl Levin (D MI)

10.  Jeff Merkley (D OR)

11.  Jack Reed (D RI)

12.  Brian Schatz (D HI)

13.  Jeanne Shaheen (D NH)

14.  Debbie Stabenow (D MI)

15.  Mark Udall (D CO)

16.  Tom Udall (D NM)

17.  Mark Warner (D VA)

18.  Elizabeth Warren (D MA)

19.  Sheldon Whitehouse (D RI)

Business participants included:

• Sam Blackman, Chief Executive Officer, Elemental Technologies, Portland, OR
• Ernest Dianastasis, Managing Director, Computer Aid, Inc, Wilmington, DE   

·         Jeff Gardner, Chief Executive Officer, Carousel Industries, Exeter, RI

• Dave Godlewski, Vice President, Teck American Incorporated, representing Red Dog Mine, AK
• Martin Kao, Chief Executive Officer, Navatek, Honolulu, HI
• John Leong, Chief Executive Officer, Kupu, Honolulu, HI
• Janice Lucero, Chief Executive Officer, MVD Express, Albuquerque,  NM
• Larry Lundblad, President, Central Lakes College, Brainerd, MN
• Haywood Schmidt, President, Axenics, Nashua, NH
• William C. Small, West Regional Manager, Michigan Manufacturing Technology Center, Plymouth, MI
• Dustin Smith, Executive Director, SolarTAC, Aurora, CO
• Julie Smolyansky, President and Chief Executive Officer, Lifeway Foods, Morton Grove, IL
• Drew Ungvarsky, Owner and Creative Director, Grow Interactive, Norfolk, VA
• Beth Williams, Chief Executive Officer, Roxbury Technology, Hyde Park, MA

Were there any other women business owners/CEOs? 

Smolyansky: Yes, two other female CEOs.

Sen. Durbin's office also provided the following information about Lifeway and the Senate Denocratic Steering Committee:

Lifeway Foods was founded in 1986 by Michael Smolyansky, a Russian immigrant who began the company by making kefir – a dairy product that is similar to yogurt – in his basement. Julie Smolyansky became the youngest female CEO of a publicly held firm in 2002 when, at the age of 27, she took over Lifeway Foods after her father’s death. Since then, she has helped Lifeway Foods take advantage of the growing global market for natural foods by engaging in more effective, targeted marketing and advertising. Lifeway Foods has used innovative technology and social media to reach out to consumers with information about its healthy food products. This approach helped boosting annual company revenues to nearly $80 million last year.

The Senate Democratic Steering and Outreach Committee exists to foster dialogue between Senators and community leaders from across the country. Nearly every week the Senate is in session, the Steering Committee hosts meetings with advocates, organizations, policy experts, and elected officials to hear their knowledge and expertise in key issue areas.