Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 174

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 174
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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, which we use to fix the purchase prices for certain commodities, as well as derivative instruments, including futures, forward, and option contracts. In addition, risk to our supply of
certain raw materials is mitigated through purchases from multiple geographies and suppliers.

117

We typically bear the risk of changes in prices on packaging materials in our products. The
changes in the prices we pay for materials occur at times that vary by product and supplier, and take place on a monthly, quarterly, or annual basis. Accordingly, we bear the risk of fluctuations in the costs of these materials, including the
underlying costs of the commodities used to manufacture them and, to some extent, the costs of converting those commodities into the materials we purchase. We may choose to pass increased costs to customers or attempt to hedge against rising costs.
If our efforts are not successful, the increased prices could have an adverse effect on our results of operations.

Our extensive
portfolio of products is primarily made available to consumers through our network of wholesalers, grocery stores, or other retailers and direct