SunOpta Stock

SunOpta Inc. operates as a manufacturer for leading natural and private label brands and also produces its own propriety brands, including SOWN, Dream and West Life.

The core of the company’s product portfolio is a range of 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’s plant-based offerings include non-genetically modified (non-GMO), organic, and gluten-free products. The company’s consumer products portfolio also includes protein shakes, teas, broths, and fruit snacks. The company focuses on value-add products in plant-based and healthy snack categories.

The company sells its products through various distribution channels, including private label products to retail customers; branded products under co-manufacturing agreements to other branded food companies for their distribution; and its own branded products to retail and foodservice customers. In addition, the company produces liquid and dry ingredients for internal use and for sale to other food and beverage manufacturers.

Divestiture of Frozen Fruit

In October 2023, the company completed the divestiture of its commodity-based frozen fruit business (Frozen Fruit), which included owned facilities of Frozen Fruit located in Edwardsville, Kansas, and Jacona, Mexico. In December 2023, the company completed the liquidation of a leased frozen fruit facility located in Oxnard, California. These transactions represent the company’s exit from the processing, packaging and selling of individually quick frozen fruit for retail, foodservice and industrial applications and completes its strategic optimization plan for its non-core, commodity-based businesses, which included the divestiture of its sunflower business (Sunflower) in 2022. Frozen Fruit and Sunflower have been classified as discontinued operations.

Customers

The company sells its products through various distribution channels, including foodservice operators, grocery retailers and club stores, branded food companies, and food manufacturers, located principally in the U.S. The company generally conducts its business with customers based on purchase orders or pursuant to contracts that are terminable by either party following a designated notice period.

Seasonality

Overall, the demand for most of the company’s products does not typically fluctuate significantly in any particular season; however, broth sales are generally higher in the first and fourth quarters of each year (year ended December 30, 2023).

Trademarks

The company markets its own consumer brands under trademarks that it owns, including SOWN, Dream and West Life.

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 its 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 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. The company is subject to certain safety regulations, including OSHA regulations.

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.