Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 168

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 168
---
 current economic environment continue to increase the importance of major customers to our business.

Furthermore, the rise of e-commerce and digital platforms has transformed how consumers discover and purchase beverages, with subscription
models, direct-to-consumer channels, and online grocery services driving convenience and fostering deeper brand engagement in the bottled water category. We plan to respond to the changing consumer marketplace by enhancing our existing digital
platforms and creating new platforms, both of which would include improvements to existing content and functionality, as well as the creation of new content and functionality. In addition, we plan to increase usage of e-commerce methods in our Water
Direct business by building out our e-commerce subscription partnerships with key retailers through the expansion of existing programs with current partners and development of programs with new partners.

Suppliers and Distribution

In addition
to water, the principal raw materials required to produce our products include PET resin, HDPE and polycarbonate bottles, caps, and preforms, labels, cartons, and trays. Some raw materials and supplies, including packaging materials, such as rPET,
may be available from only a limited number of suppliers or a sole supplier, or may be in short supply when seasonal demand is at its peak. Therefore, we rely upon our ongoing relationships with key suppliers to support our operations. We typically
enter into multi-year contracts with our key suppliers, meaning our suppliers are obligated to continue to supply us with materials for multi-year periods, at the end of which we must either renegotiate the contracts with those suppliers or find
alternative sources for supply. We believe that, as a result of the Transaction, our increased size will position us to better negotiate our contract renewals. However, if we are unable to renegotiate contracts with similar or more favorable terms
with these suppliers when our contracts expire, the prices of packaging materials, aluminum cans, and other containers we use in our manufacturing could increase depending on market and economic conditions, though we anticipate that the combined
company’s negotiating power would cause any such price increase to be smaller than if Primo Water or BlueTriton were negotiating such contract renewals on an individual basis.

Fuel, electricity, natural gas, and other energy sources are also important commodities for our business due to their use in our facilities
and the vehicles delivering our products. We purchase our own fuel and use third parties for the transportation of raw material and finished goods between our warehouses. In the past, we have experienced fluctuations in fuel prices, and we manage
this risk through the use of supplier pricing agreements,

116