What changed in this filing

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Item 1. Business

2024-06-13 compared with 2023-06-13 · 40 added, 30 removed, 94 unchanged (43% of the section changed)

7 unchanged sentences

1) expand the Company’s leadership in the packaged fruit and vegetable industry;

2) provide low-cost, high-quality vegetable products to consumers through the elimination of costs from the Company’s supply chain and investment in state-of-the-art production and logistical technology;

2) provide low-cost, high-quality fruit and vegetable products to consumers through the elimination of costs from the Company’s supply chain and investment in state-of-the-art production and logistical technology;

3) focus on growth opportunities to capitalize on higher expected returns;

8 unchanged sentences

Financial Information about Industry Segments

The Company has historically managed its business on the basis of three reportable food packaging segments:

(1) fruits and vegetables, (2) prepared food products and (3) snack products.

The other category comprises non-food packaging sales which relate to the sale of cans, ends, seed, and outside revenue from the Company's trucking and aircraft operations.

During fiscal year 2021, the Company sold its prepared foods business, leaving just two reportable segments along with the other category.

The Company’s food operation constituted 98% of total net sales in fiscal year 2023.

Canned vegetables represented 83%, frozen vegetables represented 8%, fruit products represented 6%, and chip products represented 1% of the total food packaging net sales.

The Company manages its business almost entirely on the basis of two reportable food packaging segments:

Vegetable and Fruit/Snack.

The Other category comprises non-food operations including revenue derived from the sale of cans, ends, seed, and outside revenue from the Company's trucking and aircraft operations, and certain corporate items.

The Company’s food operations constituted 98% of total net sales in fiscal year 2024.

Canned vegetables represented 83%, frozen vegetables represented 8%, fruit products represented 6%, and snack products represented 1% of the total food packaging net sales.

Non-food packaging sales represented 2% of the Company's fiscal year 2024 net sales.

1 unchanged sentence

Principal Products and Markets

The Company’s principal product offerings include canned, frozen and bottled produce, and snack chips.

The Company’s principal product offerings include canned, frozen and jarred produce, and snack chips.

The Company manufactures and sells the following:

private label products to retailers, such as supermarkets, mass merchandisers, and specialty retailers, for resale under the retailers’ own or controlled labels;

private label products to retailers, such as supermarkets, mass merchandisers, and specialty retailers, for resale under the retailers’ own or controlled labels;

private label and branded products to the foodservice industry, including foodservice distributors and national restaurant operators;

branded products under national and regional brands that the Company owns or licenses, including Seneca®, Libby’s®, Aunt Nellie’s®, Cherryman®, Green Valley® and READ®;

branded products under national and regional brands that the Company owns or licenses, including Seneca®, Libby’s®, Green Giant®, Aunt Nellie’s®, CherryMan®, Green Valley® and READ®;

branded products under co-pack agreements to other major branded companies for their distribution;

1 unchanged sentence

The Company’s fruits and vegetables are sold nationwide by major grocery outlets, including supermarkets, mass merchandisers, limited assortment stores, club stores and dollar stores.

The Company also sells its products to foodservice distributors, restaurants chains, industrial markets, other food processors, export customers in approximately 60 countries and federal, state and local governments for school and other food programs.

The Company also sells its products to foodservice distributors, restaurant chains, industrial markets, other food processors, export customers in approximately 55 countries and federal, state and local governments for school and other food programs.

Additionally, the Company packs canned and frozen vegetables under contract packing agreements.

5 unchanged sentences

Source and Availability of Raw Materials

The Company’s high-quality products are primarily sourced from approximately 1,400 American farms.

The Company’s high-quality products are primarily sourced from more than 1,200 American farms.

The Company purchases other raw materials, including steel, ingredients and packaging materials from commodity processors, steel producers and packaging suppliers.

2 unchanged sentences

The cost of raw materials, fuel, labor, distribution and other costs related to our operations can increase from time to time significantly and unexpectedly.

The Company continues to experience material cost inflation for many of its raw materials and other input costs attributable to a number of factors, including but not limited to, supply chain disruptions (including raw material shortages), labor shortages, and the war in Ukraine.

While the Company has no direct exposure to Russia and Ukraine, it has experienced increased costs for transportation, energy, and raw materials due in part to the negative impact of the Russia-Ukraine conflict on the global economy.

While the Company has no direct exposure to these conflicts, it has continued to experience increased costs for transportation, energy, and raw materials due in part to the negative impact on the global economy.

The Company attempts to manage cost inflation risks by locking in prices through short-term supply contracts, advance grower purchase agreements, and by implementing cost saving measures.

10 unchanged sentences

Intellectual Property

The Company's most significant brand name, Libby's®, is held pursuant to a trademark license granted to the Company in March 1982 and renewable by the Company every 10 years for an aggregate period expiring in March 2081.

The original licensor was Libby, McNeill & Libby, Inc., then an indirect subsidiary of Nestlé, S.

("Nestlé") and the license was granted in connection with the Company's purchase of certain of the licensor's canned vegetable operations in the United States.

Corlib Brands Management, LTD acquired the license from Nestlé during 2006.

The Company has a license agreement with B&G Foods, Inc., for use of the Green Giant® brand name to manufacture, market, distribute, and sell shelf-stable vegetable products within the United States and its territories, and certain Caribbean islands in perpetuity.

The license is royalty free and does not include Green Giant frozen, Green Giant Canada or the Le Sueur brand.

The Company holds the Libby's® brand name pursuant to a trademark license.

The license is limited to vegetables which are shelf-stable, frozen, and thermally packaged, and includes the Company's major vegetable varieties – corn, peas and green beans – as well as certain other thermally packaged vegetable varieties and sauerkraut.

The Company is required to pay an annual royalty to Corlib Brands, now known as Libby's Brand Holding, Ltd., who may terminate the license for non-payment of royalty, use of the trademark in sales outside the licensed territory, failure to achieve a minimum level of sales under the licensed trademark during any calendar year or a material breach or default by the Company under the agreement (which is not cured within the specified cure period).

The license is renewable by the Company every 10 years for an aggregate period expiring in March 2081.

The Company is required to pay an annual royalty to Libby's Brand Holding, Ltd., who may terminate the license for non-payment of royalty, use of the trademark in sales outside the licensed territory, failure to achieve a minimum level of sales under the licensed trademark during any calendar year or a material breach or default by the Company under the agreement (which is not cured within the specified cure period).

A total of $0.1 million was paid as a royalty fee for the fiscal year ended March 31, 2024.

5 unchanged sentences

For peas, the peak inventory time is mid-summer and for corn and green beans, the Company's highest volume vegetables, the peak inventory is in mid-autumn.

The seasonal nature of the Company’s production cycle results in inventory and accounts payable reaching their lowest point late in the fourth quarter/early in the first quarter prior to the new seasonal pack commencing.

The seasonal nature of the Company’s production cycle results in inventory and accounts payable reaching their lowest point late in mid-to-late first quarter prior to the new seasonal pack commencing.

As the seasonal pack progresses, these components of working capital both increase until the pack is complete.

4 unchanged sentences

Fiscal Year 2024:

Net earnings (loss)

Revolver outstanding (at quarter end)

Fiscal Year 2023:

Net earnings (loss)

Revolver outstanding (at quarter end)

Competition in the packaged food industry is substantial with brand recognition and promotion, quality, service, and pricing being the major determinants in the Company’s relative market position.

5 unchanged sentences

In the United States, the federal agencies governing the manufacture, marketing and distribution of our products include, among others, the Federal Trade Commission (“FTC”), the United States Food & Drug Administration (“FDA”), the United States Department of Agriculture (“USDA”), the United States Environmental Protection Agency (“EPA”) and the Occupational Safety and Health Administration (“OSHA”).

Under various statutes, these agencies prescribe and establish, among other things, the requirements and standards for quality, safety and representation of the Company’s products to the consumer in labeling and advertising. 

Environmental protection is an area that has been worked on diligently at each food packaging facility.

5 unchanged sentences

Such regulation could result in the creation of additional costs in the form of taxes, consultant expenses, the restriction of output, investments of capital to maintain compliance with laws and regulations or required acquisition or trading of emission allowances.

Environmental Matters

Seneca publishes an annual Corporate Responsibility Report which highlights its vision for and approach to corporate sustainability and details key initiatives it is undertaking in the areas of environmental stewardship, social responsibility, and corporate governance.

The report is available on our website and is not a part of this Annual Report on Form 10-K.

The Company takes its responsibility to be a good steward of the environment seriously and adopts policies and procedures under the guidance of the Board of Directors that advance our performance.

We monitor existing and pending climate legislation and regulation to evaluate any potential impact on our future results of operations, capital expenditures or financial position.

The Board of Directors provides oversight as part of their evaluation of business responsibility and sustainability initiatives, and we will continue to monitor emerging developments and assess our performance in this area.

We may face additional economic and operational impacts from ESG regulations as well as impacts from our suppliers and customers as they adhere to the laws and regulations.

Human Capital

As of March 31, 2023, Seneca Foods employed 2,809 full-time employees and averaged approximately an additional 3,600 seasonal employees during the Company’s peak summer harvest season.

As of March 31, 2024, Seneca employed approximately 2,900 employees and employed an additional approximately 3,900 seasonal employees during the Company’s peak summer harvest season.

100% of our employees are located in the United States, distributed across the Company’s facilities.

At Seneca Foods, we work hard every day to feed the world safe and nutritious products, while adhering to our fundamental beliefs (which can be found on our website).

At Seneca, we work hard every day to feed the world safe and nutritious products, while adhering to our fundamental beliefs (which can be found on our website).

These beliefs include acting with integrity in all matters, treating employees with respect, and maintaining the highest standards for protecting our workers.

1 unchanged sentence

Employee Health and Safety

The health and safety of our employees is a top priority at Seneca Foods.

The health and safety of our employees is a top priority at Seneca.

The Company complies with all national and local laws of the jurisdictions in which we operate regarding worker health and safety.

In addition, we work to continuously improve our safety record with worker safety training and Seneca’s HERO (“Health Environment Risk Observation”) program, in which employees proactively identify and mitigate potential safety risks.

At Seneca Foods, we believe that safety is everyone’s responsibility, and the HERO program reflects that commitment, with close to 100% employee participation.

At Seneca, we believe that safety is everyone’s responsibility, and the HERO program reflects that commitment, with close to 100% employee participation.

The Company also conducts annual safety audits at all processing locations to ensure compliance with Seneca and OSHA safety standards.

2 unchanged sentences

Employee Training and Development

Seneca Foods believes in developing internal talent and providing employees with an opportunity for education and advancement.

In support of this endeavor, we have developed two key programs .

Seneca believes in developing internal talent and providing employees with an opportunity for education and advancement.

In support of this endeavor, we have developed three key programs .

SAVES (“Seneca Adding Value Employee System”) focuses on employee empowerment, education, and application of lean manufacturing principles.

1 unchanged sentence

GROWS (“Get Rid of Waste Systemically”) supports our leadership development efforts through continuous improvement project leadership.

Diversity, Equity and Inclusion

Seneca Foods believes that everyone should feel respected and welcome in our workplace.

The Company is committed to providing equal opportunity in all aspects of employment, and to applying fair labor practices while respecting the national and local laws of the countries and communities where we have operations.

LEADS ("Leadership Education and Development at Seneca") is a training program focused on leadership, managing employees in a positive and productive manner, and reinforces many of our fundamental beliefs, such as treating employees with respect.

Seneca believes that everyone should feel respected and welcome in our workplace.

The Company is committed to providing equal opportunity in all aspects of employment, and to applying fair labor practices while respecting the national and local laws of the states and communities where we have operations.

The Company does not engage in or tolerate discrimination, intimidation, harassment, or any other unlawful conduct.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business