Primo Water Corp (PRMW)

Description:

Primo Water Corp was incorporated as a Delaware corporation on October 20, 2004. The Company is a provider of three- and five-gallon purified bottled water, self-serve filtered drinking water, water dispensers and carbonating beverage appliances sold through major retailers in the United States and Canada. The Company's products provide an environmentally friendly, economical, convenient and healthy solution for consuming purified and filtered water. The Company's operations are managed along three reportable business segments consisting of Primo Water (Water), Primo Products (Products) and 'Other.' The Company's Water segment sales consist of the sale of multi-gallon purified bottled water (exchange services) and its self-serve filtered drinking water vending service (refill services) through retailers in each of the contiguous United States and Canada. The Company's Water services are offered through point of purchase display racks or self-serve filtered water vending displays and recycling centers that are prominently located at major retailers in space that is often underutilized. The Company's Dispensers 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 U.S. retailers. The Company's water dispensers are sold primarily through a direct-import model, where it recognizes revenues for the sale of the water dispensers when title is transferred to its retailer customers. The Company support retail sell-through with domestic inventory. The Company designs, markets and arranges for certification and inspection of its products. The Company's Other segment consists of sales of its Flavorstation products, which include home beverage appliances, flavor concentrates, CO2 cylinders and accessories. The Company's Flavorstation appliances have only been sold to U.S. retailers in 2011, but does it expect international sales in 2012. The Company's primary competitors in its bottled water business include Nestlé, The Coca-Cola Company, PepsiCo, Dr Pepper Snapple Group and DS Waters of America. The conduct of its businesses and the production, distribution, advertising, promotion, labeling, safety, transportation, sale and use of its products are subject to various laws and regulations administered by federal, state, provincial and local governmental agencies in the United States and Canada.