• Cargill for plant-based ingredients.
• Foxconn for plant-based food and beverage manufacturing.

• Plant-Based Beverages: SunOpta manufactures a wide range of plant-based milks (such as almond, oat, soy, and rice), creamers, and other liquid products primarily for private label brands and as a co-manufacturer.
• Plant-Based Foods: The company produces various plant-based food items, including yogurts, frozen desserts, and other solid or semi-solid plant-based alternatives.

SunOpta (STKL) primarily sells its products to other companies (B2B). The company is a leading manufacturer and supplier of plant-based foods and beverages, often providing ingredients or private-label finished products.

While SunOpta's public filings do not disclose the names of specific major customers due to confidentiality, their 2023 annual report (10-K) indicates significant customer concentration. Their top 10 customers represented approximately 66% of their fiscal 2023 revenue.

Based on their filings, SunOpta's major customer types include:

• Large U.S. Consumer Packaged Food Companies: SunOpta's largest customer in fiscal 2023, a large U.S. consumer packaged food company, accounted for approximately 18% of their total revenue. SunOpta supplies ingredients or co-manufactures private-label products for these companies. (Specific names and symbols are not publicly disclosed by SunOpta).
• Large U.S. Retailers: Their second largest customer in fiscal 2023, a large U.S. retailer, accounted for approximately 11% of their total revenue. SunOpta provides private-label or branded plant-based products for sale in these retail chains. (Specific names and symbols are not publicly disclosed by SunOpta).
• Other Consumer Product Companies: Manufacturers of food and beverage products in North America and Europe that utilize SunOpta's plant-based ingredients in their own products.
• Other Retailers: Grocery stores and other retail channels in North America and Europe that carry SunOpta's branded or private-label plant-based products.
• Foodservice Operators: Companies that provide food and beverage services to restaurants, institutions, and other commercial entities.

Brian Kocher, Chief Executive Officer

Brian Kocher was appointed as SunOpta's Chief Executive Officer and a member of the Board on January 2, 2024. Prior to joining SunOpta, Mr. Kocher served as President and Chief Executive Officer of Calavo Growers Inc., a global avocado-industry leader, from January 2022 to February 2023. Before Calavo, he was President and Chief Executive Officer of Castellini Group of Companies, a nationwide produce distribution and supply chain services organization, from May 2015 to January 2022. Mr. Kocher also held various senior leadership positions at Chiquita Brands International, Inc., including Interim Chief Executive Officer, Executive Vice President, Chief Operating Officer, Senior Vice President, Chief Financial Officer, and President of Europe and North America.

Greg Gaba, Chief Financial Officer

Greg Gaba was appointed as SunOpta's Chief Financial Officer on October 13, 2023. He joined SunOpta in 2017, serving as the Vice President of Corporate Finance and later as Deputy CFO. Before his time at SunOpta, Mr. Gaba spent seven years at SMTC Corporation in various finance roles and six years at Ernst & Young LLP. He holds a CPA, CA designation.

Rob Duchscher, Chief Information Officer

Rob Duchscher serves as SunOpta's Chief Information Officer. He brings over 30 years of experience in Software Engineering and Information Technology. Prior to joining SunOpta, he was the CIO at Starkey Hearing Technologies, where he led the transformation of the Information Technology and Software Engineering Departments.

Jill Barnett, Chief Administrative Officer, General Counsel and Corporate Secretary

Jill Barnett serves as Chief Administrative Officer, General Counsel and Corporate Secretary for SunOpta. She is responsible for human capital and the legal affairs of the company, having joined SunOpta in July 2014.

Bryan Clark, Senior Vice President for Research & Development and Food Safety & Quality

Bryan Clark is the Senior Vice President for Research & Development and Food Safety & Quality at SunOpta. Before joining SunOpta in May 2017, he spent more than 17 years at General Mills and the Pillsbury Company in various roles. He began his career at Campbell's Soup Company.

The key risks to SunOpta's business include customer concentration, supply chain disruptions and raw material cost volatility, and significant indebtedness.

The most significant risk identified is the company's heavy reliance on a limited number of customers. SunOpta's top ten customers collectively account for approximately 80% of its revenues, meaning that the loss of even a single key customer or a reduction in their orders could have a material adverse effect on the business.

Another crucial risk involves supply chain disruptions and the volatility of raw material costs. SunOpta's operations are susceptible to shortages of raw materials, transportation issues, and fluctuations in ingredient prices, which can be influenced by energy costs, fuel prices, labor availability, freight, storage demand, weather events, and geopolitical factors. The ability to source non-GMO and organic ingredients at competitive prices is also a concern. These challenges can lead to increased operating costs and reduced profit margins, impacting the company's ability to meet consumer demand.

Finally, SunOpta faces risks associated with its indebtedness and liquidity. The company carries a significant debt burden, which could restrict its financial flexibility and heighten its vulnerability during economic downturns. Reports have also indicated a "structurally weak balance sheet" and "liquidity concerns," suggesting that the company's ability to operate and execute its strategic plans could be constrained if demand weakens or other financial pressures arise.

A clear emerging threat to SunOpta (STKL) is the rapid development and commercialization of **precision fermentation and cellular agriculture technologies**.

SunOpta's business centers on sourcing, processing, and supplying plant-based ingredients and finished products, such as plant-based milks, yogurts, and protein isolates, derived from traditional agricultural crops. Precision fermentation and cellular agriculture, however, utilize microorganisms or cell cultures to produce specific proteins, fats, enzymes, flavors, or other functional ingredients that can be identical to their animal-derived counterparts or offer novel functionalities.

This is an emerging threat because:

1. **Direct Competition for Functional Ingredients:** Companies like Perfect Day, Remilk, and others are already producing animal-free dairy proteins (e.g., casein, whey) via precision fermentation. These ingredients offer identical functionality, taste profiles, and often superior environmental benefits compared to traditional dairy, without the allergen profiles or sensory limitations sometimes associated with plant-based alternatives. If these ingredients become cost-competitive and widely adopted by food manufacturers, they could displace demand for plant-based proteins and ingredients that SunOpta sources and processes for its plant-based dairy alternative product lines.
2. **Disruption of Plant-Based Supply Chains:** As these biotechnologies mature, they could efficiently produce a broader range of ingredients (e.g., specific fats, enzymes, flavors) more sustainably or at a lower cost than extracting them from plants. This could fundamentally alter the competitive landscape for SunOpta's traditional plant-based ingredient supply chain, reducing the value proposition of some of its core offerings.
3. **Shifting Consumer Preferences:** While SunOpta benefits from the general shift towards plant-based options, consumers seeking "animal-free" or highly sustainable food solutions might increasingly favor products made with precision fermentation ingredients due to perceived superior sensory experiences, functional benefits, or even greater environmental credentials, potentially bypassing traditional plant-based products.

This represents a disruptive technological shift that could fundamentally change how certain food ingredients are produced and consumed, similar to how new digital technologies have disrupted traditional industries.

SunOpta (STKL) operates primarily within two main business segments: Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages. The company specializes in plant-based beverages, plant-based ingredients, plant-based snacks, frozen fruits, and fruit-based beverages, with a strong focus on organic and non-GMO products.

Addressable Market Sizes for SunOpta's Main Products and Services:

• Plant-Based Foods and Beverages:
  • Globally, the plant-based food and beverages market was valued at approximately USD 36.73 billion in 2023 and is projected to reach around USD 70.54 billion by 2032.
  • Another estimate places the global plant-based food and beverages market at USD 85 billion in 2025, expected to grow to USD 150 billion by 2030.
  • In North America, the plant-based food market was estimated at USD 5.72 billion in 2024 and is projected to grow to USD 12.87 billion by 2031.
  • Specifically for North America, the plant-based beverages market was valued at USD 8.02 billion in 2024 and is expected to reach USD 13.12 billion by 2032.
• Organic Ingredients:
  • The global organic ingredients market reached USD 10.2 billion in 2022 and is projected to reach up to USD 16.5 billion by 2031.
  • Another report values the global natural and organic ingredients market at USD 11.37 billion in 2024, projected to reach USD 17.59 billion by 2032.
  • The global organic food ingredients market is projected to grow from USD 252.0 billion in 2025 to USD 847.9 billion by 2035.
  • The U.S. food ingredients market, which includes natural and organic ingredients, was valued at USD 113.60 billion in 2024 and is projected to reach around USD 185.07 billion by 2034.
• Healthy Snacks (including Plant-Based and Fruit-Based Snacks):
  • The global healthy snacks market was valued at USD 101.99 billion in 2024 and is predicted to increase to approximately USD 185.40 billion by 2034.
  • In North America, the healthy snacks market generated a revenue of USD 39.47 billion in 2024 and is expected to reach USD 69.13 billion by 2033.
  • North America is a leading region in the healthy snack market, commanding approximately 38.9% of the global market share.

1. Volume Growth in Core Plant-Based Categories: SunOpta anticipates continued strong volume growth across its key product categories, particularly in plant-based beverages (including oat milk, creamers, teas, and protein shakes), broths, and fruit snacks. This growth is driven by expanding the total addressable market, securing new customers, and increasing market share with existing clients. The company has consistently reported robust volume increases in these segments.
2. Strategic Capacity Expansion: To meet rising customer demand and support projected growth, SunOpta is actively investing in and bringing online new manufacturing capabilities. This includes a new aseptic manufacturing line in Texas and a fruit snack line in Washington, which are expected to support market demand through 2028. The company has noted that capacity creation is progressing ahead of schedule.
3. New Business Development and Product Innovation: SunOpta maintains a strong pipeline of new business opportunities and emphasizes its role as an innovation partner with its top customers. This focus on product innovation and new launches is expected to contribute significantly to revenue growth by penetrating new customer segments and expanding offerings to existing ones.
4. Favorable Plant-Based and Healthy Food Trends: The company benefits from broader industry tailwinds, specifically the sustained and increasing consumer demand for plant-based and healthier food and beverage options. SunOpta is strategically positioned within these high-growth categories.
5. Enhanced Operational Efficiencies and Asset Utilization: While indirectly a revenue driver, improvements in operational efficiencies and higher utilization rates of SunOpta's expanded production assets are crucial for supporting volume growth and improving profitability, which in turn enables further investment and capacity to capture market demand.

Share Repurchases

• SunOpta announced a new $25 million share repurchase program on May 7, 2025.
• During the second quarter of fiscal 2025, the company repurchased 163,227 common shares for a total consideration of $1.0 million.
• As of June 28, 2025, $24.0 million remained available under the authorized share repurchase program.

Share Issuance

• In 2020, Oaktree Capital Management acquired 15,000 Series B-1 Preferred Shares for US$15 million to finance the plant-based foods and beverages business.
• On October 22, 2025, a director acquired 79 common shares at $5.88 per share, issued in lieu of cash for board service.

Inbound Investments

• Oaktree Capital Management, L.P. made a US$15 million investment in 2020 through the acquisition of Series B-1 Preferred Shares, aimed at adding capacity and providing incremental liquidity for the plant-based foods and beverages business.
• SunOpta raised $52.3 million in a Post IPO funding round on March 17, 2023, with investors including Engaged Capital, Claridge Investment, and Oaktree Capital Management.

Outbound Investments

• SunOpta completed the acquisition of Dream and WestSoy brands for $33 million in the first quarter of 2021, projecting an addition of $6-$8 million in adjusted EBITDA in 2022.
• The company successfully sold its global ingredients segment to Amsterdam Commodities for €330 million on December 30, 2020, to enhance its focus on the plant-based market and reduce debt.

Capital Expenditures

• SunOpta's capital expenditure guidance for 2025 is $30 million to $35 million, primarily allocated for maintenance and productivity.
• Between 2020 and 2024, SunOpta invested approximately $260 million in capital expenditures to aggressively add capacity and capability across its core platforms.
• A total investment of $35 million is planned primarily in 2026 for a new aseptic line in Midlothian, Texas, and a fruit snacks line in Omak, Washington, which is expected to increase network capacity by approximately 10%.