Annual report pursuant to Section 13 and 15(d)

Significant Customers and Concentration of Credit Risk

v3.23.1
Significant Customers and Concentration of Credit Risk
 12 Months Ended
Feb. 28, 2023
Risks and Uncertainties [Abstract]  
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK
Net sales to our 10 largest customers represented approximately half of our net sales for the years ended February 28, 2023, February 28, 2022, and February 28, 2021, and are expected to continue to represent a significant portion of our revenues. Net sales to customers which individually amount to 10% or more of our net sales, and the associated amounts receivable from these customers as a percentage of our accounts receivable, are as follows:
For the Years Ended
February 28,
2023		 February 28,
2022		 February 28,
2021
Reyes Beer Division entities
Net sales 22.7  % 21.0  % 18.6  %
Accounts receivable 15.6  % 11.1  % 12.7  %
Southern Glazer’s Wine and Spirits
Net sales 13.0  % 14.4  % 10.5  %
Accounts receivable 24.0  % 35.2  % 28.7  %

Net sales for the above customers are primarily reported within the Beer and Wine and Spirits segments, respectively. Our arrangements with certain of our customers may, generally, be terminated by either party with prior notice. The majority of our accounts receivable balance is generated from sales to independent distributors with whom we have a predetermined collection date arranged through electronic funds transfer. We perform ongoing credit evaluations of our customers’ financial position, and management is of the opinion that any risk of significant loss is reduced due to the diversity of our customers and geographic sales area.