Since Joe Ennen took the helm of Eden Prairie-based SunOpta in 2019, the fruit side of the company's plant-based food business has been a drag on the bottom line.
This week the CEO finally had some progress to report.
"We fundamentally have reset the manufacturing footprint of the business, and we've put a huge focus on innovation," Ennen said in an interview Thursday. "There's only so much value one can add with frozen strawberries in a bag — our focus has been on innovation driving value-added products."
SunOpta's main revenue stream — and the focus of much of its growth expectations — is in plant-based beverages such as oat milk, which it produces for a number of in-store and national brands and under a few of its own brands.
Fruit sales include quick-frozen whole fruit sold at stores; ingredients for restaurants and other food manufacturers; and fruit-based bars and snacks. Together the segment accounts for about 40% of SunOpta's sales but has been consistently reporting operating losses.
The fruit business posted an operating profit for the first time since late 2020 during its first quarter this year, SunOpta reported Wednesday.
The company recently introduced fruit smoothie bowls that are showing up at major retailers, including under Target's house brand, and have been an early success, Ennen said.
Moving fruit operations from California to Mexico has helped trim costs and keep up with rising demand for organic and no-sugar-added products especially, Ennen said.
