EFTA Document EFTA01381294

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 National Pet Superstores PotSmart nas approximately 1.300 U.S stores and Petco approximately 1.385 U S stores *Commerce Retailers Examples irxiude Amazon. Chewy and POtflow es well as PetSrrian and Peron Regional Chains and Neighborhood Pet Stem Approxisnatety 10.000 units ranging from regsonal chants with ewer 100 units eel Supplies Plus, Pat Supermarket. Pet Vale and Petsense) to nekintromoon stores Farm and Feed Stores Approximato€y 10.00G units including Trade Supply Company. Mid-SEAle‘ and new regional chains and independents Other Specialty Veterinary Clinks Includes miktary outlets. hardvnue Approximately 25.030 units sexes and other pet rimed 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/datat I 609989/000119312515218883/d734898dsl.htm(7/20/2015 10:30:13 AM) CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0080154 SDNY GM_00226338 EFTA01381294