XML 31 R18.htm IDEA: XBRL DOCUMENT v3.20.2
12. Segments, Products and Customers
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segments, Products and Customers

Note 12 – Segments, Products and Customers

 

Lifeway’s primary product is drinkable kefir, a cultured dairy product. Lifeway Kefir is tart and tangy, high in protein, calcium and vitamin D. Thanks to our exclusive blend of kefir cultures, each cup of kefir contains 12 live and active cultures and 15 to 20 billion beneficial CFU (Colony Forming Units) at the time of manufacture.

 

We manufacture (directly or through co-packers) our products under our own brand, as well as under private labels on behalf of certain customers. In addition to our core drinkable kefir products, we offer several lines of products developed through our innovation and development efforts. These include Kefir Cups, a strained, cupped version of our kefir; and Organic Farmer Cheese Cups, a cupped version of our soft cheeses, both served in resealable 5 oz. containers. We also offer Skyr, a strained cupped Icelandic yogurt; Plantiful, a plant-based probiotic beverage made from organic and non-GMO pea protein with 10 vegan kefir cultures; a line of probiotic supplements for adults and children; and a soft serve kefir mix.

 

Our product categories are:

 

  · Drinkable Kefir, sold in a variety of organic and non-organic sizes, flavors, and types, including low fat, non-fat, whole milk, protein, and BioKefir (a 3.5 oz. kefir with additional probiotic cultures).
  · European-style soft cheeses, including farmer cheese in resealable cups.
  · Cream and other, which consists primarily of cream, a byproduct of making our kefir.
  · ProBugs, a line of kefir products designed for children.
  · Other Dairy, which includes Cupped Kefir and Icelandic Skyr, a line of strained kefir and yogurt products in resealable cups.
  · Frozen Kefir, available in soft serve and pint-size containers.

 

Lifeway has determined that it has one reportable segment based on how our 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 our performance, has been identified collectively as the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer, and Chairperson of the board of directors. Substantially all of our consolidated revenues relate to the sale of cultured dairy products that we produce using the same processes and materials and are sold to consumers through a common network of distributors and retailers in the United States.

 

Net sales of products by category were as follows for the six months ended June 30:

 

    2020     2019  
    $     %     $     %  
Drinkable Kefir other than ProBugs   $ 40,003       79%     $ 36,613       77%  
Cheese     6,514       13%       5,557       11%  
Cream and other     1,432       3%       2,446       5%  
ProBugs Kefir     1,317       3%       1,460       3%  
Other dairy     808       1%       902       2%  
Frozen Kefir (a)     328       1%       790       2%  
Net Sales   $ 50,402       100%     $ 47,768       100%  

 

(a)

Includes Lifeway Kefir Shop sales

 

Net sales of products by category were as follows for the three months ended June 30:

 

    2020     2019  
    $     %     $     %  
Drinkable Kefir other than ProBugs   $ 20,146       80%     $ 17,727       76%  
Cheese     3,254       13%       2,706       12%  
Cream and other     651       3%       1,145       5%  
ProBugs Kefir     457       2%       697       3%  
Other dairy     437       2%       423       2%  
Frozen Kefir (a)     69       0%       455       2%  
Net Sales   $ 25,014       100%     $ 23,153       100%  

 

(a) Includes Lifeway Kefir Shop sales

 

Significant Customers – Sales are predominately to companies in the retail food industry located within the United States. Two major customers accounted for approximately 21% and 22% of net sales for the six months ended June 30, 2020 and 2019, respectively. Two major customers accounted for approximately 21% and 22% of net sales for the three months ended June 30, 2020 and 2019, respectively.