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Disaggregation of Revenue and Significant Customers
 6 Months Ended
Jun. 30, 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 six months ended June 30:

                
   2025   2024 
In thousands  $   %   $   % 
                 
Drinkable Kefir other than ProBugs   84,039    84%    77,543    83% 
Cheese   7,811    8%    6,892    7% 
Cream and other   4,825    5%    3,987    4% 
ProBugs Kefir   1,515    1%    1,750    2% 
Drinkable Yogurt   1,083    1%    2,918    3% 
Other dairy   719    1%    701    1% 
Net Sales   99,992    100%    93,791    100% 

 

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

                 
   2025   2024 
In thousands  $   %   $   % 
                 
Drinkable Kefir other than ProBugs   45,989    85%    41,010    83% 
Cheese   3,999    8%    3,377    7% 
Cream and other   2,366    4%    2,171    4% 
ProBugs Kefir   769    1%    884    2% 
Drinkable Yogurt   449    1%    1,382    3% 
Other dairy   329    1%    333    1% 
Net Sales   53,901    100%    49,157    100% 

 

Significant Customers

 

Sales are predominately to companies in the retail food industry located within the United States. Two customers accounted for a total of approximately 25% and 26% of net sales for the six months ended June 30, 2025 and 2024, respectively. Two customers accounted for a total of 25% and 27% of net sales for the three months ended June 30, 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 six months and three months ended June 30, 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.