Seneca Foods's Business Segments

Seneca is a U.S.-based provider of packaged fruits and vegetables, sourcing from over 1,100 American farms. The company offers canned, frozen, and jarred produce, as well as snack chips, marketed under private labels and owned or licensed brands including Seneca®, Libby’s®, Green Giant®, Aunt Nellie’s®, CherryMan®, Green Valley®, and READ®. Seneca distributes its products nationwide through supermarkets, mass merchandisers, club stores, dollar stores, foodservice distributors, restaurant chains, industrial markets, other food processors, export customers in approximately 55 countries, and government food programs. The company also provides contract packing services for canned and frozen vegetables. Seneca's business strategies include expanding market share, reducing supply chain costs through technology investments, pursuing growth opportunities, and making strategic acquisitions. The company faces cost fluctuations in raw materials, labor, fuel, and distribution, influenced by tariffs, supply chain disruptions, inflation, and global economic conditions. To manage costs, Seneca employs short-term supply contracts and advance purchase agreements and attempts to offset rising costs by raising prices, although competitive pressures may limit this. In fiscal year 2026, Seneca's net sales increased 5.1% to $1.66 billion, driven by higher volumes and pricing, with growth in canned and frozen vegetables and fruit products. Gross margin improved to 13.9% from 9.5% in the prior year, supported by a favorable LIFO credit. Selling, general, and administrative expenses increased slightly, primarily due to workforce costs.

The Company operates primarily in food packaging through two reportable segments: Vegetable and Fruit/Snack. These segments align with how the Chief Executive Officer, serving as the Chief Operating Decision Maker (CODM), allocates resources and evaluates performance. The CODM assesses segment profitability based on earnings before income taxes. An Other category includes non-food operations such as sales of cans, ends, seed, revenue from aircraft operations, and certain corporate items; these activities do not constitute operating segments and are aggregated in this category. Segment earnings before income taxes are used by the CODM to guide operational decisions, including budget approval, market expansion, acquisitions or divestitures, and capital expenditures. Segment information is reported on a FIFO basis consistent with internal financial reporting, with LIFO impacts disclosed separately for GAAP reconciliation. For fiscal years 2026 and 2025, the segments report net sales, cost of products sold, selling and advertising expenses, general and administrative expenses, other segment items, interest expense, earnings before income taxes, income taxes, net earnings, depreciation and amortization, capital expenditures, and total assets.