Company: CODI-PB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001345126-25-000015
Chunk: 171

Company: Compass Diversified Holdings
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 171
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 is comprised of long-standing, entrenched relationships with a diversified set of customers.  Sterno’s top ten customers comprised approximately 70%, 70%, and 71% of gross sales in the years ended December 31, 2024, 2023 and 2022, respectively. 

•Foodservice - The foodservice channel consists of multiple layers of distribution comprised of broadline distributors, equipment and supply dealers and cash and carry dealers. Within the food service channel, Sterno’s products are predominantly used in the restaurant, lodging/hospitality and catering markets. 

•Retail - The retail channel consists of club stores, mass merchants, specialty retailers, grocers and national and regional DIY stores. The Company’s retail products are used in home, camping and emergency applications. The Company’s retail products appeal to a wide variety of consumers, from home entertainers to recreational campers and extreme outdoorsmen.  Online retail sales are also an important channel for Sterno and Rimports. With an online dynamic, it is also much easier to showcase how Sterno’s and Rimports' products look in actual dark use conditions, directly addressing their primary merchandising challenge. 

The following table sets forth Sterno’s gross revenue by product for the fiscal years ended December 31, 2024, 2023 and 2022:

Year ended December 31,Gross sales by product (1)202420232022Canned Heat39 %38 %35 %Wickless Candle Products28 %29 %32 %Table Lighting5 %5 %5 %Flameless Candle and Outdoor Lighting4 %4 %6 %Diffusers and Essential Oils2 %4 %5 %Other22 %20 %17 %100 %100 %100 %

(1)  As a percentage of gross sales, exclusive of sale discounts.

Sterno had approximately $12.5 million in firm backlog orders at December 31, 2024 and 2023, respectively.

Business Strategies and Competitive Strengths

Business Strategies

Defend Leading Market Position - As a leading supplier of canned fuels, flameless candles and outdoor lighting, wickless candles and fragrance products, Sterno places great value in delivering unmatched customer service and product selection.  In a market characterized by fragmented categories and competition, Sterno will continue to focus on providing the best in class service to its customers. Sterno Products has been the recipient of numerous vendor awards for its