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EFTA01381305

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Form S-1 Table of Contents BLUE products arc sold in specialty channels. including national pet superstore chains, regional pet store chains, neighborhood pet stores, farm and fetid stores. °Commerce retailers, military outlets and hardware stores. Our sales in the Vet channel are currently minimal. We sell our products directly to retailers in the specialty channels and through distributors that focus on the specialty channels. Whether we sell our products directly to retailers or through distributors primarily depends on the size of the account and whether the account has account-operated distribution centers for its own outlets. We review accounts on a regular basis and may re-designate them as a direct or distributor account depending on our cost-to -serve them, trends in their business and channel and changes in their distribution capabilities. The majority of our products are sold directly to retailers. Our direct accounts include large national and regional chains with their own distribution capability, such as PetSmart, Petco, Tractor Supply Company and Pet Supermarket, as well as larger online retailers. In 2014. 73% of our net sales were generated from sales to national pet giperstores. PetSmart and Petco. BLUE's sales to national pet superstores grew 25% in 2014 compared to 2013, while our sales to all of our other accounts grew 35% for the same period. Most of our retailers in the regional and neighborhood specialty channel and the fawn and feed store channel are served through our distributors. We have multiple distributors in most of our geographic areas. These distributors specialize in, and typically carry a wide assortment, of pet products. We believe we arc one of their largest and fastest growing brands. Ow distributors provide mainly logistics services and limited in- field sales support, with sales and account acquisition being driven primarily by us and through in-bound interest directly from retailers. From time to time, we offe

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Independent research project. Not affiliated with the U.S. Department of Justice, FBI, any government agency, or Anthropic. All analytical text on this site is AI-generated (Claude, Anthropic) and iteratively fact-checked against source documents, but may contain errors. Verify all claims against linked EFTA sources before citing.
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