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13. Segments, Products and Customers
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segments, Products and Customers

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 package configurations. In addition to the drinkable products, Lifeway manufactures "Lifeway Farmer Cheese," a line of various farmer cheeses.

 

The Company has determined that it has one reportable segment 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 Company performance, has been identified collectively as the Chief Financial Officer, the Chief Operating Officer, the Chief Executive Officer and Chairperson of the board of directors.  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 consumers through a network of distributors and retailers in the United States.

 

Net sales of products by category were as follows for the years ended December 31:

 

   2016   2015 
         
Drinkable Kefir other than ProBugs  $105,983   $100,812 
Lifeway cheese products   10,258    9,725 
ProBugs Kefir products   6,383    6,775 
Frozen Kefir   1,255    1,275 
Net sales  $123,879   $118,587 

 

Significant Customers – Sales are predominately to companies in the retail food industry, located within the United States. Two major customers accounted for approximately 23% of net sales for the years ended December 31, 2016 and 2015. These customers accounted for approximately 25% and 16% of accounts receivable as of December 31, 2016 and 2015, respectively.