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Segments And Products
 3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
Note 13 - Segments And Products

The Company manufactures probiotic, cultured, functional dairy health food products. The Company’s primary product is kefir, a dairy beverage similar to but distinct from yogurt, in several flavors and in several packages. In addition to the drinkable products, Lifeway manufactures “Lifeway Farmer Cheese,” a line of various farmer cheeses.

 

Net sales of products by category for the three months ended March 31 were as follows:

 

    2015     2014  
Drinkable Kefir other than ProBugs   $ 25,587,341     $ 25,087,811  
ProBugs     2,006,071       1,863,897  
Lifeway Farmer Cheese     1,722,392       1,686,188  
Frozen Kefir     306,320       493,815  
Net Sales   $ 29,622,124     $ 29,131,711  

  

The Company has two operating segments, the sale of fermented dairy products and three retail locations in Illinois that sell the Company’s fermented dairy products. The Company has determined its reportable segments based on how the Company’s chief operating decision maker manages the business and in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Financial Officer and the board of directors that makes strategic decisions. Substantially all of the consolidated revenues of the Company relate to the sale of fermented dairy products which are produced using the same processes and materials and are sold to consumer retail food sellers through direct delivery and distributors in the United States.

 

The Company has less than $1 million in revenues attributable to its retail locations during the three months ended March 31, 2015 and 2014. The annual revenues attributable to the three retail locations are not material and accordingly the Company has not presented financial information separately for this segment. Substantially all of the consolidated revenues and assets of the Company are within the United States.