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Revenue Recognition
 9 Months Ended
Sep. 27, 2025
Disaggregation of Revenue [Abstract]  
Revenue Recognition

C. Revenue Recognition

 

The breakdown of revenue during the thirteen and thirty-nine weeks ended September 27, 2025 and September 28, 2024 were as follows:

 

 

Thirteen weeks ended

 

 

Thirty-nine weeks ended

 

 

September 27, 2025

 

 

September 28, 2024

 

 

September 27, 2025

 

 

September 28, 2024

 

Shipments to domestic distributors

 

93

%

 

 

94

%

 

 

94

%

 

 

94

%

Shipments to international distributors

 

5

%

 

 

4

%

 

 

5

%

 

 

5

%

Sales at retail locations

 

2

%

 

 

2

%

 

 

1

%

 

 

1

%

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 

The Company recognizes revenue when obligations under the terms of a contract with its customer are satisfied; generally, this occurs with the transfer of title of its products. Revenue is measured as the amount of consideration expected to be received in exchange for transferring products. If the conditions for revenue recognition are not met, the Company defers the revenue until all conditions are met. As of September 27, 2025 and December 28, 2024, the Company has deferred $16.8 million and $11.3 million, respectively, in revenue related to product shipped prior to these dates. These amounts are included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets.

 

Customer promotional discount programs are entered into by the Company with distributors for certain periods of time. The reimbursements for discounts to distributors are recorded as reductions to net revenue and were $19.1 million and $53.0 million for the thirteen and thirty-nine weeks ended September 27, 2025, respectively, and $20.1 million and $50.4 million for the thirteen and thirty-nine weeks ended September 28, 2024, respectively. The agreed-upon discount rates are applied to certain distributors' sales to retailers, based on volume metrics, in order to determine the total discounted amount. The computation of the discount allowance requires that management make certain estimates and assumptions that affect the timing and amounts of revenue and liabilities recorded. Actual promotional discounts owed and paid have historically been in line with allowances recorded by the Company; however, the amounts could differ from the estimated allowance.

 

Customer programs and incentives are a common practice in the alcohol beverage industry. Amounts paid in connection with customer programs and incentives are recorded as reductions to net revenue or as advertising, promotional and selling expenses, based on the nature of the expenditure. Customer incentives and other payments made to distributors are primarily based upon performance of certain marketing and advertising activities. Depending on applicable state laws and regulations, these activities promoting the Company's products may include, but are not limited to point-of-sale and merchandise placement, samples, product displays, promotional programs at retail locations and meals, travel and entertainment. Amounts paid to customers in connection with these programs that were recorded as reductions to net revenue or as advertising, promotional and selling expenses for the thirteen and thirty-nine weeks ended September 27, 2025 and September 28, 2024 were as follows:

 

 

Thirteen weeks ended

 

 

Thirty-nine weeks ended

 

 

September 27, 2025

 

 

September 28, 2024

 

 

September 27, 2025

 

 

September 28, 2024

 

 

(in thousands)

 

 

(in thousands)

 

Amount recorded as a reduction to net revenue

$

11,930

 

 

$

9,109

 

 

$

30,876

 

 

$

22,823

 

Amount recorded as advertising, promotional and selling expenses

 

6,519

 

 

 

5,277

 

 

 

15,608

 

 

 

14,537

 

Total customer programs and incentives

$

18,449

 

 

$

14,386

 

 

$

46,484

 

 

$

37,360

 

 

Costs recognized in net revenues include, but are not limited to, promotional discounts, sales incentives and certain other promotional activities. Costs recognized in advertising, promotional and selling expenses include point of sale materials, samples and advertising expenditures in local markets. These costs are recorded as incurred, generally when invoices are received; however certain estimates are required at the period end. Estimates are based on historical and projected experience for each type of program or customer and have historically been in line with actual costs incurred.