Revenue Recognition

3 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 18. Revenue Recognition

The Company’s primary sources of revenue are sales of coffee, tea and culinary products. The Company recognizes revenue when control of the promised good or service is transferred to the customer and in amounts that the Company expects to collect. The timing of revenue recognition takes into consideration the various shipping terms applicable to the Company’s sales.

The Company delivers products to customers through Direct-store-delivery (“DSD”) to the Company’s customers at their place of business and Direct ship from the Company’s warehouse to the customer’s warehouse, facility or address. Each delivery or shipment made to a third party customer is to satisfy a performance obligation. Performance obligations generally occur at a point in time and are satisfied when control of the goods passes to the customer. The Company is entitled to collection of the sales price under normal credit terms in the regions in which it operates.

The Company disaggregates net sales from contracts with customers based on the characteristics of the products sold:

	Three Months Ended September 30,
	2022				2021
(In thousands)	$		% of total		$		% of total
Net Sales by Product Category:
Coffee (Roasted)	$	78,295	64.5	%	$	70,597	65.1	%
Tea & Other Beverages (1)	20,946		17.3	%	19,037		17.6	%
Culinary	14,896		12.3	%	13,075		12.1	%
Spices	6,024		4.9	%	5,199		4.8	%
Net sales by product category	120,161		99.0	%	107,908		99.6	%
Delivery Surcharge	1,219		1.0	%	454		0.4	%
Net sales	$	121,380	100.0	%	$	108,362	100.0	%

____________

(1)Includes all beverages other than roasted coffee, including frozen liquid coffee, and iced and hot tea, including cappuccino, cocoa, granitas, and concentrated and ready-to drink cold brew and iced coffee.

The Company does not have any material contract assets and liabilities as of September 30, 2022. Receivables from contracts with customers are included in “Accounts receivable, net” on the Company’s consolidated balance sheets. At September 30, 2022 and June 30, 2022, “Accounts receivable, net” included, $46.2 million and $44.2 million, respectively, in receivables from contracts with customers.