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Commitments and Contingencies
12 Months Ended
Dec. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies [Text Block]

19. Commitments and Contingencies

Legal Proceedings

Various current and potential claims and litigation arising in the ordinary course of business are pending against the Company. The Company believes it has established adequate accruals for liabilities that are probable and reasonably estimable that may be incurred in connection with any such currently pending matter. In the Company's opinion, the eventual resolution of such matters, either individually or in the aggregate, is not expected to have a material impact on the Company's financial position, results of operations, or cash flows. However, litigation is inherently unpredictable and resolutions or dispositions of claims or lawsuits by settlement or otherwise could have an adverse impact on the Company's financial position, results of operations, and cash flows for the reporting period in which any such resolution or disposition occurs.

U.S. Customs and Border Protection Matter

On February 3, 2025, the Company delivered a voluntary disclosure letter to CBP regarding the tariff classification of certain fruit snack products produced at the Company's Niagara, Ontario, facility. The Company disclosed to CBP that a revised tariff classification should have been utilized for previously reported shipments, resulting in the underpayment of duties to CBP for the period from January 2022 to December 2024. As at December 28, 2024, the Company accrued $7.4 million for the duties and interest thereon believed to be owed. The Company intends to submit a final report to CBP by April 3, 2025. As the matter is subject to review by CBP, it is possible that the actual amount of duties and interest owed may differ from the amount presently accrued by the Company, and CBP may assess additional fines, penalties or enact other measures.

Product Withdrawal

In the second quarter of 2024, the Company conducted a voluntary withdrawal from customers of certain batches of aseptically-packaged products that may have had the potential for non-pathogenic microbial contamination. None of the withdrawn product made it into the consumer marketplace. The Company recognized direct costs related to the withdrawal of $2.1 million, net of expected insurance recoveries, in cost of goods sold in the consolidated statement of operations. The Company is seeking to recover a portion of the withdrawal-related costs through its insurance coverage, and such recoveries are recorded in the period in which the recoveries are determined to be probable of realization. As at December 28, 2024, the Company has recognized expected insurance recoveries related to the withdrawal of $7.6 million, which is included in prepaid expenses and other current assets on the consolidated balance sheet. The Company does not expect to incur any additional significant costs related to this withdrawal.

Product Recall

On June 21, 2023, the Company announced its subsidiary, Sunrise Growers, had issued a voluntary recall of specific frozen fruit products linked to pineapple provided by a third-party supplier due to possible contamination by Listeria monocytogenes. In connection with the divestiture of Frozen Fruit, the recall-related costs and estimated insurance recoveries are included in net loss from discontinued operations in the consolidated statements of operations. As at December 30, 2023, recall-related costs of $1.3 million were recorded in accounts payable on the consolidated balance sheet, which were settled during 2024. There were no significant additional direct costs associated with the recall recognized in 2024. Additionally, as at December 30, 2023, estimated insurance recoveries of $4.8 million were included in prepaid expenses and other current assets on the consolidated balance sheet. During 2024, the Company received insurance proceeds of $5.1 million, resulting in a recovery of previously recognized recall-related costs of $0.3 million, which is recognized as a gain in other income of discontinued operations. As of December 28, 2024, the Company considers all activities related to this recall to be complete.

Environmental Laws

The Company believes that, with respect to both its operations and real property, it is in material compliance with current environmental laws. Based on known existing conditions and the Company's experience in complying with emerging environmental issues, the Company is of the view that future costs relating to environmental compliance will not have a material adverse effect on its consolidated financial position, but there can be no assurance that unforeseen changes in the laws or enforcement policies of relevant governmental bodies, the discovery of changed conditions on the Company's real property or in its operations, or changes in the use of such properties and any related site restoration requirements, will not result in the incurrence of significant costs.