Primo Water Corporation, together with its subsidiaries, provides multi-gallon purified bottled water, self-service refill water and water dispensers sold through major retailers in the United States and Canada. The company’s business is designed to generate recurring demand for its purified bottled water or self-serve filtered drinking water through the sale of innovative water dispensers. This business strategy is commonly referred to as ‘razor-razorblade’ because the initial sale of a product creates a base of users who frequently purchase complementary consumable products. Once the company’s bottled water is consumed using a water dispenser, empty bottles are exchanged at its recycling center displays, which provide a recycling ticket that offers a discount toward the purchase of a new bottle of Primo purified water (Exchange) or they are refilled at a self-serve filtered drinking water location (Refill). Each of its multi-gallon water bottles could be sanitized and reused approximately 40 times before being taken out of use, crushed and recycled, substantially reducing landfill waste compared to consumption of equivalent volumes of single-serve bottled water. The company provides major retailers throughout the United States and Canada with single-vendor solutions for Dispensers and Water. Its solutions are easy for retailers to implement, require minimal management supervision and store-based labor, and provide centralized billing and detailed performance reports. Refill provides filtered water through the installation and servicing of reverse osmosis water filtration systems in the back room of the retailer’s store location, which minimizes the usage of the customer’s retail space. The self-service filtered water display, which is typically accompanied by a sales display containing empty reusable bottles, is located within the retailer customer’s floor space. Segments The company has two segments, Primo Water (Water) and Primo Dispensers (Dispensers). Water This segment’s sales consist of the company’s Exchange and Refill services, which are offered through retailers in each of the contiguous United States and Canada. The company’s Water products are offered through point of purchase display racks or self-service filtered water displays and recycling centers that are prominently located at major retailers in space that is often underutilized. Dispensers This segment sells water dispensers that are designed to dispense Primo and other dispenser-compatible bottled water. The company’s Dispensers sales are primarily generated through major retailers in the U.S. and Canada, where it recognizes revenues for the sale of the water dispensers when title is transferred. The company supports retail sell-through with domestic inventory. Products Water: The company develops its water purification process and formulates the proprietary blend of mineral ingredients included in the purified bottled water offered through Exchange. Its Refill service consists of carbon filtration and a reverse osmosis water filtration system that provides filtered drinking water, which is routinely tested for quality. The company sources three- and five-gallon water bottles from multiple independent vendors for use in Exchange. For Refill, the company offers empty reusable one-, two-, three- and five-gallon bottles for a sales display that typically accompany its self-service filtered water display, which are sourced from various manufacturers. Water Dispensers: The company sources and markets 2 lines of water dispensers consisted of approximately 39 models. Its dispensers are designed to dispense Primo and other dispenser-compatible bottled water. Distribution Network The company has a strategic alliance agreement with DS Services of America, Inc. (DS Services) pursuant to which DS Services has become its primary bottler and distributor and provider of exchange and supply services for the Exchange business in the United States. Retailer Relationships As of December 31, 2015, the company’s products and services were offered in each of the United States and in Canada at approximately 25,700 combined ret
primo water corp (PRMW:NASDAQ GM)
101 North Cherry Street
Winston-Salem, NC 27101
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