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Item 1A. Risk Factors
Certain risks associated with our operations are discussed in Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 28, 2024. Except as set forth below, there have been no material changes to the previously reported risk factors as of the date of this quarterly report. Our previously reported risk factors should be carefully reviewed in connection with an evaluation of our Company.
Risks Related to Our Company, Business and Operations
The imposition of new or increased tariffs could have a material adverse effect on our business, financial condition and results of operations
In March 2025, the U.S. imposed 25% additional dutietariffs on goods from Canada and Mexico that are not exempt under the U.S.-Mexico-Canada Agreement ("USMCA"). On April 2, 2025, the U.S. announced a minimum 10% tariff on all imports and significant new "reciprocal tariffs" on imports from a wide range of countries. On April 9Effective August 1, 2025, the U.S. announced that the effective date of the reciprocal tariffs would be delayed for 90 days, except for China, but the minimum 10% tariff and additional duties on tariff rate on those goods from Canada and Mexico remain in effectwas raised to 35%. We source a portion of our raw material ingredients and packaging globally, including from Canada and Mexico. Additionally, a portion of our total revenues are generated from the sale of fruit snack products imported into the U.S. from our Niagara, Ontario, facility. As a result, the imposition of tariffs by the U.S. will result in additional costs for us, as well as our suppliers, and increase the landed cost in the U.S. of our products produced in Canada that are not exempt under the USMCA, which could have a material adverse effect on our business, financial condition and results of operations.
In addition, the imposition of tariffs, the uncertainty about tariff implementation and tariff rates, and the actual or potential imposition of retaliatory tariffs could weaken the U.S. economy, resulting in lower demand for our products, which could have a material adverse effect on our business, financial condition and results of operations.