SunOpta (STKL) - 2024 Q4 - Annual Report

Customer Concentration - In 2024, the top ten customers accounted for approximately 80% of SunOpta's revenues[17] - In 2024, the top ten customers accounted for approximately 80% of the company's revenues[17] Employee Engagement and Retention - The voluntary employee turnover rate decreased to 16.3% in 2024, down from 20.2% in 2023[27] - The voluntary turnover rate in 2024 was 16.3%, down from 20.2% in 2023[27] - The company has implemented various employee retention programs aimed at increasing engagement and reducing turnover[27] - The company employs 1,248 full-time employees in North America as of December 31, 2024[27] Health and Safety - SunOpta's Total Recordable Incident Rate (TRIR) ended the year at 2.25, indicating a focus on employee health and safety[27] - The Total Recordable Incident Rate (TRIR) ended the year at 2.25[27] - The company is subject to various safety regulations, including those from OSHA, to protect employees from accidents[35] Innovation and Development - The company operates a 24,000 square foot innovation center and pilot plant, employing 21 food scientists dedicated to product development[23] - The innovation center and pilot plant spans 24,000 square feet and supports a team of 21 food scientists and technologists[23] Sustainability and Environmental Commitment - Over 95% of SunOpta's packaging by weight is recyclable, reflecting the company's commitment to sustainability[20] - Over 95% of the company's packaging by weight is recyclable, with ongoing efforts to innovate packaging technologies[20] - The company is committed to meeting all applicable environmental compliance requirements, including air quality and waste treatment regulations[38] - The company is committed to environmental, social, and governance (ESG) principles, with oversight from the Corporate Governance Committee[28] Regulatory Compliance - The company is subject to a wide range of governmental regulations in the U.S. and Canada, impacting various aspects of its operations, including food safety and environmental compliance[29] - The company maintains compliance with USDA organic regulations and has an organic testing and verification process in place[31] - The company believes it is in material compliance with state and local food safety, labeling, and packaging regulations, including California's Proposition 65[34] - The company maintains compliance with various U.S. and Canadian regulations related to food safety, labeling, and environmental standards[29] - In 2022, the Government of Canada amended the Food and Drug Regulations, requiring manufacturers to update labels on prepackaged foods by December 31, 2025[43] - The Canadian Food Inspection Agency (CFIA) has the authority to inspect and recall products deemed a risk to public health, including fresh produce and processed foods[43] Financial Reporting and Risks - SunOpta's financial reporting is expressed in thousands of U.S. dollars, ensuring clarity in financial disclosures[11] - The company anticipates potential impacts from inflationary pressures on raw material, packaging, labor, and transportation costs[12] - The company faces risks related to supply chain disruptions and fluctuations in the cost and availability of raw materials[13] Intellectual Property Protection - The company has a policy to protect its technology, brands, and trademarks through patents and confidentiality agreements[39] - The company relies on patents, trade secrets, and trademarks to protect its technology and products, filing patent applications in the U.S. and selected foreign jurisdictions[39] - The company believes it has sufficient rights to use all proprietary technology necessary for manufacturing and marketing its products, but acknowledges risks related to patent applications and potential challenges from third parties[40] - The company utilizes confidentiality agreements and internal policies to safeguard its proprietary technology and processes, although there is a risk of outside partners gaining access[41] Waste Management - The company has agreements with local sewer districts to treat waste at specified limits, requiring regular reporting and inspections[37]