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Disaggregation of Revenue and Significant Customers
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Disaggregation of Revenue and Significant Customers

Note 13 – Disaggregation of Revenue and Significant Customers

 

The Company has one reportable segment, which manufactures and distributes cultured dairy products. Our products are produced using the same processes and materials and are sold to consumers through a common network of distributors and retailers. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis. The business activities include selling cultured dairy products across various channels including retail-direct, distributor, and direct store delivery in a refrigerated format. We operate our business with a centralized financial systems infrastructure, and we share centralized resources for procurement and general and administrative activities. The accounting policies of the segment are the same as those described in the Summary of Significant Accounting Policies for the Company. Refer to Note 1 for additional information.

 

The Chief Executive Officer (“CEO”) has been identified as our Chief Operating Decision Maker (“CODM”). The Company manages operations on a company-wide basis, thereby making determinations as to the allocation of resources as one segment. The CODM uses consolidated single-segment financial information to assess performance for the segment and decides how to allocate resources based on the Company’s consolidated net income (loss), which is reported on the Consolidated Statement of Operations. The measure of segment assets is reported on the Consolidated Balance Sheet as total assets.

 

Products from which the reportable segment derives its revenue

 

Lifeway’s primary product is drinkable kefir. The Company manufactures (directly or through a co-manufacturer) and markets products under the Lifeway, Fresh Made, and GlenOaks Farms brand names, as well as under private labels on behalf of certain customers.

 

The Company’s product categories are:

 

  · Drinkable kefir, a cultured dairy product sold in a variety of organic and non-organic sizes, flavors, and types.
  · European-style soft cheeses, including farmer cheese, white cheese, and Sweet Kiss.
  · Cream and other, which primarily consists of cream, a byproduct of raw milk processing.
  · Drinkable yogurt, sold in a variety of sizes and flavors.
  · ProBugs, a line of kefir products designed for children.
  · Other dairy, which primarily consists of Fresh Made butter and sour cream.

 

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

                
   2025   2024 
In thousands  $   %   $   % 
                 
Drinkable Kefir other than ProBugs   38,050    83%    36,533    82% 
Cheese   3,812    8%    3,515    8% 
Cream and other   2,459    5%    1,816    4% 
Drinkable Yogurt   634    1%    1,536    3% 
ProBugs Kefir   746    2%    866    2% 
Other dairy   390    1%    368    1% 
Net Sales   46,091    100%    44,634    100% 

 

Significant Customers

 

Sales are predominately to companies in the retail food industry located within the United States. Two major customers accounted for a total of 24% and 25% of net sales for the three months ended March 31, 2025 and 2024, respectively.

 

Geographic Information

 

Net sales outside the of the United States represented less than 1% of total consolidated net sales for the three months ended March 31, 2025 and 2024. Net sales are determined based on the destination where the products are shipped by Lifeway.

 

All the Company’s long-lived assets are in the United States.