Segments, Products and Customers

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segments, Products and Customers

Note 12 – Segments, 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.

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 as the Chief Executive 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: 

	2022				2021
In thousands	$		%		$		%
Drinkable Kefir other than ProBugs		110,247		78%		95,850		80%
Cheese		12,651		9%		12,612		11%
Cream and other		7,465		5%		3,582		3%
Drinkable Yogurt		6,105		4%		2,223		2%
ProBugs Kefir		3,403		3%		3,178		3%
Other dairy		1,697		1%		1,620		1%
Net Sales		141,568		100%		119,065		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% and 23% of net sales for the years ended December 31, 2022 and 2021, respectively. Two major customers accounted for 28% and 32% of accounts receivable as of December 31, 2022 and 2021, respectively.