Daughter Runs Company Started by Dad

Written by Shala Hainer Tuesday, November 01 2011

Snapshot: Julie Smolyansky, CEO, Lifeway Foods
From serving as her father's taste-tester for his kefir flavors as a child to becoming the youngest female CEO of a publicly held firm, mother of two Julie Smolyansky still tries to maintain a family environment as president, CEO, and director of Lifeway Foods. Her Russian-immigrant father started the company in 1986 after realizing the popular Russian drink was not commercially available in the United States. He started the company out of his basement, selling kefir, a Russian-style yogurt drink full of calcium and protein, to local grocery stores.

After the death of her father in 2002, Smolyansky, then 27, took over as CEO of Lifeway Foods. Her creative product development and marketing ideas have increased the company's revenue to $65 million in 2011. Her achievements haven't gone unnoticed: She was named as one of Crain’s Chicago Business’ 40 under 40 in 2005, a finalist for Ernst and Young’s Entrepreneur of the Year Award in 2010, and featured in Crain’s Chicago Business as the driving force behind one of Chicago’s fastest growing companies.

Her father wasn't the only entrepreneur in the family; her mother, Ludmila, started with one Russian delicatessen in 1977 and successfully grew her business to five locations. Her mother still serves as Lifeway's chairperson of the board of directors.

In addition to boosting her business and spending time with her family, Smolyansky makes time to give back and volunteer. She participated in model/activist Christy Turlington Burns’ Every Mother Counts campaign to increase education and support for maternal and child health. Lifeway donates a portion of Low-Fat Blueberry Kefir sales to Every Mother Counts. She serves on the board of directors for the Anti-Defamation League, Hebrew Immigrant Aid Society (a division of Jewish United Fund), and the Illinois Holocaust Museum and Education Center. Also, she is active in several Chicago professional organizations.

Womenetics: Was it always a given that you would work with Lifeway, or when did you make that decision?
Julie Smolyansky: At first, I had no interest in working at Lifeway Foods. My intention was to become a clinical psychologist. I was interested in how people made dieting choices, so I wasn’t too far off. I came to work for my father during a summer in grad school, and I started part time as a data entry associate (basically entering numbers into a computer) to earn some money for the school year. Within two weeks of starting, I heard the conversations around the office; the challenges and opportunities were so clear, and I fell in love with Lifeway Foods, kefir, and probiotics. I also was also drawn to the chance to get to know my father as two adults working toward a greater mission of bringing kefir to the masses. I quickly moved to sales and marketing. I think my dad tried to teach me everything he could. He gave me a tremendous opportunity for which I am eternally grateful.

Womenetics: What one thing helped prepare you for taking on the huge responsibility of running Lifeway at such a young age, and how did it prepare you?
Smolyansky: I think there were a few things that came together for me. For starters, both of my parents were major role models and were instilling a strong work ethic. The cool thing is they loved what they did, too. I dubbed them the “original foodies.” My mother opened and operated five ethnic delicatessens when I was a child through my young adult years. Seeing her as a passionate entrepreneur and a loving mom was obviously a major factor.

Marie Wilson (president of The White House Project) said, “You can’t be what you can’t see.” My father was very good at pointing out strong female role models, everyone from female politicians like Jan Schakowsky to female CEOs like Christy Hefner. In addition, I gravitated toward leadership opportunities. As a high school student, I was very active with several school groups and was the director of homecoming, president of our volunteer association, and the head of various other school groups. I also believe athletics played a big part in developing my “can do” mind-set, ability to challenge myself, set goals, work on a team, and accept defeat. And probably at the heart of it, I want to succeed for myself.

Womenetics: How do you keep a family atmosphere in a multimillion dollar company?
Smolyansky: We try to maintain a laid-back and informal environment; everything from our no-dress-code environment to the fact that we generally enjoy each other’s company and respect each other’s differences. We try to get together outside of the office as much as possible, from summer BBQs to Chicago Cubs games. We still pass out turkeys on Thanksgiving. We host baby showers to staff members who are expecting. Our holiday party always includes partners. I think these small gestures have big impact on the feeling we have that we are a family company and we support one another.

Womenetics: How do you determine who your next target audience should be and how to keep your product ideas fresh and modern?
Smolyansky: Basically, we keep looking for ways to offer healthy food choices to the consumer. We pay very close attention to what our consumers are asking for, how they use kefir or how they’re eating, what seems to be missing, and how can we help solve the dilemma of what we should eat. How we can help our customer is at the foundation of product innovation and marketing.

Womenetics: What has been the hardest thing, or your biggest obstacle, during your time as CEO?
Smolyansky: The hardest. Wow. That’s difficult because there have been so many challenging, self-imposed sleepless nights. But I enjoy a challenge, so it works for me. If I had to pinpoint our challenges, they would be managing growth, learning to step back and let people fail, operating on a tight small budget with limited resources against giant conglomerate competitors in a recession, and staying optimistic 100 percent of the time.

Womenetics: What has been the most important lesson you have learned as CEO of Lifeway?
Smolyansky: The biggest lesson is that there’s a bigger picture, and that growth and comfort can’t coexist.

Womenetics: You are very involved in philanthropy, being generous with donations and even traveling to Bangladesh with Every Mother Counts. How do you find time to volunteer on such a scale?
Smolyansky: How do I find time to volunteer? To whom much is given much is expected. I can’t imagine not participating in causes and giving a voice to those that ask. The world has some big problems. We need everyone to participate in healing it collectively. Besides, it makes me feel good, and I am inspired by the people and stories I come across, so I guess it’s self-serving.

Womenetics: What do you see as the next step for Lifeway?
Smolyansky: I believe there is a chance to bring our brand to new markets outside of the United States. I see continued growth as leaders and food innovators here in the States. I think we’re just getting started. It’s a very exciting time for us. The benefits of kefir have finally been discovered, and we’re not the ones screaming it anymore.

Womenetics: What advice would you share with young ladies trying to make a career as a corporate executive?
Smolyansky: Find a few mentors and really spend time together monthly. Get behind a corporation that stands for your value system with products you believe in. Look for corporations that have female senior management. Realize “perfect” is an illusion. Every company has its own challenges and story; what works for one may not work for all. Follow your intuition. Pick a partner that is truly a 50-50 partner.

Womenetics: As a mother of two, how do you find the balance between work life and being a mother?
Smolyansky: There is no balance. Something is always out of balance. You just make it work as best as you can. Again, pick a partner that is truly a 50-50 partner. Having the technology of a smart phone has dramatically helped, but the lines between work and life are generally blurred as a consequence. The good thing is if you enjoy and are passionate about what you do you never really “work.”

Womenetics: What do you like to do to relax?
Smolyansky: I love playtime with my girls – they amaze me every day and mostly make me laugh harder than I ever have. I like to see rock concerts and live music. (I’ve seen over 20 Pearl Jam shows). I like to spend time with my friends sharing good food, good wine, laughter, and tears. I love running and biking outdoors and the luxury of a nice, hot shower.

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Based near Atlanta, Shala Hainer has been writing and copyediting since 1995. Beginning her career at newspapers such as the Marietta Daily Journal and the Atlanta Business Chronicle, she most recently wrote and edited articles for several nonprofit organizations before purchasing a flower shop in 2006. She earned a bachelor’s in communications from Jacksonville State University.