CONCENTRATIONS AND RELATED PARTIES

12 Months Ended

Dec. 31, 2022

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND RELATED PARTIES

CONCENTRATIONS AND RELATED PARTIES

Significant customers.  For 2022, 2021, and 2020, the Company had no sales to an individual customer that accounted for more than 10 percent of consolidated sales.  During the years 2022, 2021, and 2020, the Company’s ten largest customers accounted for approximately 38 percent, 36 percent, and 37 percent of consolidated sales, respectively.

Significant suppliers. For 2022, the Company had purchases from two grain suppliers that approximated 23 percent of consolidated purchases. In addition, the Company’s ten largest suppliers, accounted for approximately 49 percent of consolidated purchases.

For 2021, the Company had purchases from two grain suppliers that approximated 14 percent of consolidated purchases. In addition, the Company’s ten largest suppliers accounted for approximately 43 percent of consolidated purchases.

For 2020, the Company had purchases from two grain suppliers that approximated 30 percent of consolidated purchases. In addition, the Company’s ten largest suppliers accounted for approximately 65 percent of consolidated purchases.

Related Parties. For the years ended December 31, 2022 and 2021, the Company purchased $37,274 and $23,463, respectively, of bulk beverage alcohol from LMX. The Company holds 50 percent interest in LMX, which is accounted for as equity method investments. See Note 1, Nature of Operations and Summary of Significant Accounting Policies.

For the year ended December 31, 2021, the Company purchased $2,718 of finished goods from Meier’s Wine Cellars, Inc. (“Meier’s”) and sold $2,411 of bulk beverage alcohol to Meier’s. The Lux Family Group owns approximately 22.8 percent of the outstanding shares of MGP at December 31, 2021. One member of the Lux Family Group has a relative that was the president of Meier’s and majority owner of Meier’s. The members of the Lux Family Group did not have any involvement in the negotiation of transactions for either party. In January 2022, Meier’s was sold to Vintage Estates and is no longer considered a related party to the Company.