Business Segments

9 Months Ended

Sep. 30, 2017

Business Segments and Significant Customers

Business Segments and Significant Customers

8.Business Segments

Prior to the Frozen Fruit Asset Sale, our operations consisted of two reportable segments: frozen products and snack products.  The frozen products segment included frozen fruits, fruit and vegetable blends, beverages, side dishes and desserts for sale primarily to grocery stores, club stores and mass merchandisers.  The snack products segment produces potato chips, kettle chips, potato crisps, potato skins, pellet snacks, sheeted dough products, popcorn and extruded products for sale primarily to snack food distributors and retailers.  Our reportable segments offer different products and services.  The majority of our revenues are attributable to external customers in the United States.  We also sell to external customers internationally. However, the revenues attributable to such customers are immaterial.  All of our assets are located in the United States.

All products sold under our frozen products segment are considered part of the healthy/natural food category.  The products sold under our snack products segment include products considered part of the indulgent specialty snack food category, as well as products considered part of the healthy/natural food category.

In September 2017, the Company completed the Frozen Fruit Asset Sale, which consisted of the sale of the remaining operations of our frozen products segment. Therefore, the results of the frozen products segment have been reflected as discontinued operations for all periods presented.

For the fiscal quarters ended September 30, 2017 and September 24, 2016, net revenues of our healthy/natural food category totaled $18.4 million and $19.4 million, respectively. For the fiscal quarters ended September 30, 2017 and September 24, 2016, net revenues of our indulgent specialty snack food category totaled $9.0 million and $9.2 million, respectively.

For the nine months ended September 30, 2017 and September 24, 2016, net revenues of our healthy/natural food category totaled $56.2 million and $52.0 million, respectively.  For the nine months ended September 30, 2017 and September 24, 2016, net revenues of our indulgent specialty snack food category totaled $28.1 million and $29.0 million, respectively.

Indulgent specialty snacks includes T.G.I. Friday’s® brand snacks under license from T.G.I. Friday’s, Nathan’s Famous® brand snack products under license from Nathan’s Famous Corporation, Vidalia® brand snack products under license from Vidalia Brands, Inc., Poore Brothers® brand kettle cooked potato chips, Bob’s Texas Style® brand kettle cooked chips, and Tato Skins® brand potato snacks. Healthy/natural snacks includes Boulder Canyon® brand kettle cooked potato chips, other snack and food items and private label healthy/natural snacks.