Corporate Profiles - 2022 - 106

COMPANY OVERVIEW
SunOpta, Inc.
S
investment in expanding
its plant-based processing capacity paid
as the company delivered strong results
through fiscal 2022.
Now, SunOpta management is looking to
make nutrition beverage business development
its next strategic priority.
" We're going to leverage our core capabilities
(in aseptic beverage processing) to get into
nutrition, " said Michael Buick, general manager
of SunOpta's Plant-Based Food and Beverage
business unit, during a June investor day presentation.
The
company is adding processing capabilities
for 330-ml packages, with its initial foray
into the category focusing on whey-based
beverages. As of June 2022, Mr. Buick said
SunOpta is negotiating with a " leading brand "
in the category to buy 90% of the company's
capacity.
The initial foray into the category will focus
on whey-based beverages, said Joseph D. Ennen,
chief executive officer.
" We would need to add incremental capacity
to really drive hard against the plant-based
side of it, and we would look to do that with
a partner, " Mr. Ennen said. " These are expensive
manufacturing lines. They are massive. You
Investments in plant-based production capacity paying
unOpta Inc.'s
need volume flowing through them. "
The company capped off recent growth with
the opening of its new 65,000-square-foot
headquarters and innovation center in Eden
Prairie, Minn. The facility features a pilot plant,
as well as a research and development center
eight times the size of its previous location.
" Our growth ambitions required this move, "
Mr. Ennen said. " We've grown our plant-based
business by more than $100 million over the
last two years through a focus on innovation
and new customer development, and we expect
this pace of growth to continue. "
As SunOpta's ability to meet the growing
demand for dairy-free options took effect, the
company delivered one of the strongest quarters
in its history, said Mr. Ennen in an August
2022 earnings call. The production from its
plant-based facilities during the second quarter
increased 20% year-over-year while sales of
milk alternatives grew by 30%. The company's
net income for the second quarter ended July 2
was $924,000, or 1c per share on the common
stock, which compared with a loss of $1.7 million
in the same period last year.
The company is not slowing down with continued
expansions and has several more projects
to increase its production capacity underway.
A new line is planned at the Modesto, Calif.,
plant, and the completion of a second oat
extraction facility on the West Coast is expected
in 2023. The company's largest capital expansion
project to date - a new 275,000-squarefoot
" mega-plant " in Midlothian, Texas - is
slated for its first saleable production run in
late 2022.
" These investments are needed to double the
revenue and profits of our plant-based business, "
said Scott E. Huckins, chief financial officer
at SunOpta, in the August earnings call. " We
continue to believe we will be rewarded over
the next several years for executing these investments
in such a challenging environment. "
In August, SunOpta updated its full-year
outlook to reflect the strong start to the year.
Previous revenue guidance ranged from $890
million to $930 million, but was raised to a
range of $930 million to $960 million. CP
Chief executive officer -
Joseph D. Ennen
SunOpta, Inc. net income (loss)
SunOpta, Inc. net revenues
SunOpta, Inc. share price
per share
$10
$12
($9)
$67
($8)
$722
$789
$813
$4
$6
$8
2019
106 \ November 2022
2020
2021
2019
2020
2021
Oct. Dec.
2021
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Dairy Processing
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Corporate Profiles - 2022

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