SunOpta Inc. Segments Disclosure

19. Segment Information

Description of Operating and Reportable Segment, Identification of Chief Operating Decision Maker, and Measures of Segment Profit or Loss and Segment Assets

The Company manages its continuing operations on a company-wide basis, rather than at a product category or business unit level, thereby making determinations as to the allocation of resources as one operating and reportable segment. The Company's Chief Executive Officer, who has been identified as the Chief Operating Decision Maker ("CODM"), is supported by a centralized management team based on functional area, including sales, marketing, supply chain, research and development, and quality assurance, as well as finance, legal, information technology, and administration. Only the CODM has overall responsibility and accountability for the profitability and cash flows of the Company. Using financial information at the consolidated level, including corporate and non-operating costs and expenses, the CODM makes key operating decisions, including approving annual operating plans, expanding into new markets or product categories, pursuing business acquisitions or divestitures, and initiating major capital expenditure programs. In addition, the CODM determines the allocation of resources (including personnel, productive assets, and financial resources) and capital investments to optimize operations and maximize opportunities for the Company as a whole without regard to specific product categories or business units. The CODM also uses consolidated information to establish company-wide incentive compensation targets.

The measure of segment profit or loss utilized by the CODM is earnings (loss) from continuing operations as reported on the Company's consolidated statements of operations. The CODM uses this measure of segment profit or loss to assess actual performance relative to budget and considers budget-to-actual variances when making decisions about reallocations of personnel or capital resources from those considered by the annual operating plan. The significant segment-level expense information provided to the CODM is consistent with the Company's consolidated statements of operations, as supplemented by the specified expense items disclosed in the table below. The measure of segment assets is the same as total assets reported on the Company's consolidated balance sheets. The accounting policies of the Company's operating and reportable segment are the same as those described in the Company's summary of significant accounting policies (see note 1).

Disaggregation of Revenue

The majority of the Company's products are shelf-stable packaged food and beverage products and share similar customers and distribution. The principal products that comprise the Company's product categories are as follows:

Category	Principal Products
Beverages and broths	Plant-based beverages utilizing oat, almond, soy, coconut, rice, hemp, and other bases, including Dream® and West Life™ brands; oat-based creamers, including SOWN® brand; ready-to-drink protein shakes; packaged teas and concentrates; and meat and vegetable broths and stocks.
Fruit snacks	Ready-to-eat fruit snacks made from apple purée and juice concentrate in bar, bit, twist, strip and sandwich formats; and cold pressed fruit bars.
Ingredients	Liquid bases utilizing oat and soy.

Revenue disaggregated by product category is as follows: 

Specified Expense Items

The following table presents details of specified expenses provided to the CODM and included in earnings (loss) from continuing operations:

		January 3, 2026			December 28, 2024			December 30, 2023
		$			$			$
Depreciation and Amortization
Depreciation expense included in cost of goods sold		32,106			29,719			24,225
Depreciation expense included in selling, general and administrative expenses		5,404			4,994			5,030
Intangible asset amortization expense		2,024			1,784			1,784
Total depreciation and amortization		39,534			36,497			31,039
Stock-Based Compensation
Stock-based compensation expense included in selling, general and administrative expenses		7,381			11,190			12,432
Interest Expense, Net
Interest expense, net of capitalized interest		23,080			26,307			24,422
Amortization of debt issuance costs		1,128			914			1,398
Loss on extinguishment of debt		-			-			1,584
Interest income		(3,130	)		(2,313	)		(495	)
Interest expense, net		21,078			24,908			26,909

 

Geographic Information

Revenues from external customers are attributed to countries based on the location of the customer. Revenues from external customers by geographic area for the years ended January 3, 2026, December 28, 2024 and December 30, 2023 were as follows:

		January 3, 2026			December 28, 2024			December 30, 2023
		$			$			$
Revenues from External Customers
U.S.		797,628			710,191			611,566
Canada		19,678			11,359			11,740
Other		409			2,178			3,424
Total revenues from external customers		817,715			723,728			626,730

Long-lived assets consist of property, plant and equipment, net of accumulated depreciation, and operating lease right-of-use assets, which are attributed to countries based on the physical location of the assets. Long-lived assets by geographic area as at January 3, 2026 and December 28, 2024 were as follows:

		January 3, 2026			December 28, 2024
		$			$
Long-Lived Assets
U.S.		439,365			446,525
Canada		5,583			2,785
Total long-lived assets		444,948			449,310

Major Customers

One customer accounted for 32%, 32% and 35% of the Company's consolidated revenues for the years ended January 3, 2026, December 28, 2024 and December 30, 2023, respectively. No other customer accounted for 10% or more of the Company's consolidated revenues in any of those years.