About SunOpta

SunOpta Inc. and its subsidiaries (SunOpta) operates as a U.S.-based global pioneer fueling the future of sustainable, plant-based and fruit-based foods and beverages. With a focus on health and sustainability, the core of the company’s diverse product portfolio is the company’s range of non-genetically modified (‘non-GMO’), organic, and gluten-free plant-based beverages, including oat, almond, soy, coconut and rice milks and creamers, which have a favorable climate profile relative to traditional dairy milks in terms of lower carbon emissions and water usage. The company manufactures and sells private label products to retail and foodservice customers; branded products under co-manufacturing agreements to other branded food companies for their distribution; branded products under the company’s own proprietary brands to retail and foodservice customers; and bulk ingredients for use by foodservice customers and other food manufacturers. Reportable Segments and Principal Products The following is a description of the principal activities and products that comprise the company’s operating and reportable segments: Plant-Based Foods and Beverages - The company offers a full line of plant-based beverages and liquid and powder ingredients, utilizing oat, almond, soy, coconut, rice, hemp, and other bases, as well as everyday broths, teas, and nutritional beverages. In addition, the company’s former sunflower business, which packaged dry- and oil-roasted inshell sunflower and sunflower kernels and processed raw sunflower inshell and kernel for food and feed applications, was part of this segment until it was sold on October 11, 2022. Fruit-Based Foods and Beverages - The company offers individually quick frozen (‘IQF’) fruit for retail, including strawberries, blueberries, mango, pineapple, and other berries and blends, and IQF and bulk frozen fruit for foodservice, including toppings, purees, and smoothies. In addition, the company offers fruit snacks, including bars, twists, ropes, and bite-sized varieties, as well as fruit smoothie bowls. Sale of Sunflower Business On October 11, 2022, the company completed the sale of 100% of the assets and liabilities of the company’s sunflower business and related roasted snacks operations, which operated from three processing facilities located in Minnesota and North Dakota. The sale of the sunflower commodity business was consistent with the company’s strategic priority of optimizing its non-core businesses and focusing on high-growth, high-return opportunities. Customers The company sells its plant-based and fruit-based food and beverage products through various distribution channels, including large retailers and club stores, branded food companies, foodservice distributors, quick service and casual dining restaurants, and food manufacturers, located principally in the U.S. Seasonality The company experiences seasonality in the procurement, transportation, and processing of strawberries, mainly related to the peak Mexico and California production seasons, which generally occur during the first two quarters of the year (year ended December 2022). As a result, the company’s short-term financing needs are generally highest in those periods due to crop inventory builds, while cash inflows are typically higher in the second half of the year as inventories are drawn down. Overall, the demand for most of the company’s products does not typically fluctuate significantly in any particular season, however, sales of everyday broths are generally highest in the first and fourth quarters of each year. Trademarks The company markets its own consumer brands under trademarks that the company owns, including SOWN, Dream, West Life, and Sunrise Growers. Regulations The company’s activities in the U.S. are subject to regulation by various governmental agencies, including the Food and Drug Administration (‘FDA’), the Federal Trade Commission (‘FTC’), the Environmental Protection Agency (‘EPA’), the U.S. Department of Agriculture (‘USDA’), Occupational Safety and Health Administration (‘OSHA’), and the Departments of Commerce and Labor, as well as voluntary regulation by other bodies. Various state and local agencies also regulate the company’s activities. The company manufactures and distributes a number of organic products that are subject to the standards set forth in the Organic Foods Production Act and the regulations adopted thereunder by the National Organic Standards Board. As a manufacturer and distributor of food products, the company is subject to the Federal Food, Drug and Cosmetic Act, the Fair Packaging and Labeling Act, and regulations promulgated thereunder by the FDA and the FTC. The company is subject to certain safety regulations, including OSHA regulations. The company and its operations are subject to Safe Food for Canadians Regulations (‘SFCR’) (under the Safe Food for Canadians Act); Food and Drug Regulations (under the Food and Drugs Act); Canadian Food Inspection Agency Act; Substance Regulations; and Canada Consumer Product Safety Act. History The company was founded in 1973. It was incorporated under the laws of Canada in 1973. The company was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in 2003.