About Premium Brands Holdings

Premium Brands Holdings Corporation, through its subsidiaries, manufactures and distributes specialty food products primarily in Canada and the United States. Segments The company operates through two segments, Specialty Foods and Premium Food Distribution. Specialty Foods This segment consists of the company’s specialty food manufacturing businesses and includes Harvest, Grimm’s, Freybe, Hempler’s, Isernio’s, Made-Rite Meat Products, SJ Fine Foods, Piller’s, Expresco, Belmont Meats, Leadbetter Foods, Skilcor Food Products, Creekside, Stuyver’s, Island City Baking, Duso’s, Gourmet Chef, Conte Foods, Larosa Fine Foods, Hygaard, Quality Fast Foods, Deli Chef, SK Food Group, Raybern’s and Buddy’s Kitchen. Premium Food Distribution This segment consists of the company’s differentiated distribution and wholesale businesses and includes Harlan Fairbanks, Centennial Foodservice, B&C Food Distributors, Worldsource, E1even, Wescadia, C&C Packing, Premier Meats, Interprovincial Meat Sales, Maximum Seafood, Ocean Miracle and Diana’s Seafood. In addition, the Premium Foods Distribution segment includes Hub City Fisheries, a specialty seafood processor, on the basis that it is an integral part of the Premium Food Distribution segment’s national seafood distribution strategy. Customers The customers of the company’s businesses could be grouped into the following general categories: Chains and Large Format Retailers: This category includes large national and regional grocery chains and warehouse clubs that primarily receive deliveries at centralized warehouses and take responsibility for all activities from that point forward, including delivery to individual stores, inventory management, store display and promotional activities. Independent and Specialty Retailers: This category includes various retail focused customers, such as independent grocery and general stores, convenience stores, gas bars and ethnic food retailers. It also includes distributors who purchase products from the company then sell them to these types of customers. Foodservice Operators: This category primarily consists of commercial foodservice operators whose business is out-of-home food and beverage preparation and service – such as restaurants, bars, café’s, concession operators and caterers; and non-commercial foodservice operators whose primary business is not food and beverage preparation and service, but includes some component of this – such as hotels, recreation facilities, schools and hospitals. Customer relationships with foodservice operators are primarily managed directly by the company’s businesses. Foodservice Distributors: This category consists of broadline distributors who purchase various products from food and non-food manufacturers and then warehouse, market, sell and deliver them primarily to foodservice operators. The company’s specialty food businesses sell their products to foodservice distributors and rely on these companies to develop and maintain relationships with individual customers. The company’s premium food distribution businesses maintain direct relationships with foodservice operators, and when requested by the customer, use foodservice distributors as a logistics solution for their products. Trading Customers: This category primarily consist of other food manufacturers and food brokers. The company’s sales to these customers mainly consist of food commodities sourced through the worldwide procurement initiatives of its trading and wholesaling businesses. Distribution The company’s businesses distribute their products to customers primarily through one or more of the following distribution strategies: Proprietary Truck Fleets: This consists of using a fleet of owned and/or leased trucks to deliver products directly to customers. Freight Companies: This consists of using third party freight companies to ship products to customers. Customer Pickup: This consists of customers picking up products at the business’ plant or distribution center. Seasonality The company’s results then peak in the spring and summer months due to favorable weather conditions and decline in the fourth quarter (year ended December 2017) due to a return to poorer weather conditions.