EFTA01381294.pdf

Form S-1 Table of Contrail Thc following shows the type of specialty channels and the estimate of the number of stores in the different types of specialty channels through which pet foods were sold as of the end of 2014: Specially Channels: A Large and Diverse Pet Food Retail Landscape Regional Chains and National Pet Superstores Farm and Feed Stores Neighborhood Pet Stem PotSmart nas approximately Approxisnatety 10.000 units Approximato€y 10.00G units 1.300 U.S stores and Petco ranging from regsonal chants with including Trade Supply approximately 1.385 U S stores ewer 100 units eel Supplies Plus, Company. Mid-SEAle‘ and new Pat Supermarket. Pet Vale and regional chains and independents Petsense) to nekintromoon stores *Commerce Retailers Other Specialty Veterinary Clinks Examples irxiude Amazon. Includes miktary outlets. hardvnue Approximately 25.030 units Chewy and POtflow es well as sexes and other pet rimed PetSrrian and Peron establishments such as poi groomers. hotels and (*cares We estimate that Tracked Channels rep's-sent 86% of the total U.S. pet food market. Untracked Channels include FDM retailers that do not participate in Nielsen tracking (e.g.. Costco and Whole Foods), farm and feed stores, eCommerce retailers, hardware stores and military outlets. We believe that Untracked Channels are growing faster than Tracked Channels and shifting some volume out of the Tracked Channels. We participate in Untracked Channels as well (outside of the FDM channel), where BLUE is growing rapidly. Published estimates of the size of the eCommerce sales of pet foods in the United States vary significantly as it is an Untracked Channel. We estimate that in 2014 the eCommerce channel represented approximately r% of pet food sales in the United States, which includes sales through stand-alone eCommerce retailers. as well as websites of brick-and-mortar retailers. We believe the eCommerce channel is growing rapidly with year-over-year growth rates in the teens as commas increasingly shop for CPU online and as more eCommerce retailers offer free shipping on pet foods. The following chart shows pet food retail sales in the United States in 2014 for both Tracked and Untracked Channels. Pet Food Retail Sales by Channel United States. Tracked and Untracked Channels 2014 67 httplAvviw.see.gov/Archivecledgar/datatI 609989/000119312515218883/d734898dsl.htm(7/20/2015 10:30:13 AM) CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0080154 CONFIDENTIAL SDNY GM_00226338 EFTA01381294