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Item 1A. Risk Factors
Certain risks associated with our operations are discussed in IPart I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for the year ended December 28, 2024. , and in Part II, Item 1A "Risk Factors" of our Quarterly Reports on Form 10-Q filed with the U.S. Securities and Excehange Commission on May 7, 2025 and August 6, 2025. 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 tariffs on goods from Canada and Mexico that are not exempt under the U.S.-Mexico-Canada Agreement ("USMCA"). Effective August 1, 2025, the tariff rate on those goods from Canada was raiincreased 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, which may resulting in lower demand for our products, whi. Further, the potential inflationary impact of tariffs may also slow economic growth and reduce household savings, which could have a may impact the level of consumption of certain of our products in the event consumers reduce overall spending and/or shift to lower-cost product alternatives. Any of these outcomes could have a material adverse effect on our business, financial condition and results of operations