Segments, Products and Customers

12 Months Ended

Dec. 31, 2021

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 its exclusive blend of kefir cultures, each cup of kefir contains 12 live and active cultures and 25 to 30 billion beneficial CFU (Colony Forming Units) at the time of manufacture.

Lifeway manufactures (directly or through co-packers) and market products under the Lifeway, Fresh Made, and Glen Oaks Farms brand names, as well as under private labels on behalf of certain customers.

The Company’s product categories are:

· Drinkable Kefir, 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 consists primarily of cream, a byproduct of making our kefir.

· ProBugs, a line of kefir products designed for children.

· Drinkable Yogurt, solid in a variety of sizes and flavors

· Other Dairy, which consists primarily of Fresh Made butter and sour cream.

Lifeway has determined that it has one reportable segment based on how its 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 the Company’s performance, has been identified collectively as the Chief Executive Officer and Chief Financial Officer. Substantially all of Lifeway’s consolidated revenues relate to the sale of cultured dairy products that it produces 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 years ended December 31: 

	2021				2020
In thousands	$		%		$		%
Drinkable Kefir other than ProBugs	$	95,850		80%	$	81,437		80%
Cheese		12,612		11%		12,905		13%
Cream and other		3,582		3%		2,872		3%
ProBugs Kefir		3,178		3%		2,733		2%
Drinkable Yogurt		2,223		2%		–		0%
Other dairy (a)		1,620		1%		2,079		2%
Net Sales	$	119,065		100%	$	102,026		100%

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(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 23% and 21% of net sales for the years ended December 31, 2021 and 2020, respectively. Two major customers accounted for 32% and 22% of accounts receivable as of December 31, 2021 and 2020, respectively.