Products and Customers

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Products and Customers

Note 12 – Products and Customers

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 by product category were as follows for the six months ended June 30:

	2022				2021
	$		%		$		%
Drinkable Kefir other than ProBugs	$	52,482		78%	$	48,373		82%
Cheese		6,022		9%		6,221		11%
Cream and other		3,564		5%		1,691		3%
Drinkable yogurt		3,077		5%		–		0%
ProBugs Kefir		1,599		2%		1,431		2%
Other dairy		846		1%		822		2%
Net Sales	$	67,590		100%	$	58,538		100%

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

	2022				2021
	$		%		$		%
Drinkable Kefir other than ProBugs	$	26,120		78%	$	24,170		82%
Cheese		2,998		9%		3,022		11%
Cream and other		1,596		5%		828		3%
Drinkable yogurt		1,526		5%		–		–
ProBugs Kefir		817		2%		751		2%
Other dairy		434		1%		391		2%
Net Sales	$	33,491		100%	$	29,162		100%

Significant Customers – Sales are predominately to companies in the retail food industry located within the United States. Two major customers accounted for approximately 22% of net sales for the six months ended June 30, 2022 and 2021. Two major customers accounted for approximately 22% and 23% of net sales for the three months ended June 30, 2022 and 2021, respectively.