The company utilizes raw materials such as polyethylene terephthalate (PET) resin, glass, aluminum, high-density polyethylene (HDPE), and low-density polyethylene (LDPE) in its product manufacturing. To manage exposure to commodity price fluctuations, the company has implemented risk mitigation programs, including energy surcharges linked to energy indexes in North America. Its three and five gallon bottled water packaging follows a refill, reuse, and recycle model, which helps distribute costs across multiple deliveries. Supplier pricing arrangements often permit adjustments based on commodity cost changes, and the company maintains the ability to renegotiate contracts or seek alternative suppliers as necessary. The company assumes the risk of increases in ingredient and packaging material costs, including conversion costs. Price adjustments occur at varying intervals depending on the product and supplier. The company considers the supply of required ingredients and packaging materials to be adequate.
Primo Brands's Comment on Supply Chain
The company utilizes raw materials such as polyethylene terephthalate (PET) resin, glass, aluminum, high-density polyethylene (HDPE), and low-density polyethylene (LDPE) in its product manufacturing. To manage exposure to commodity price fluctuations, the company has implemented risk mitigation programs, including energy surcharges linked to energy indexes in North America. Its three and five gallon bottled water packaging follows a refill, reuse, and recycle model, which helps distribute costs across multiple deliveries. Supplier pricing arrangements often permit adjustments based on commodity cost changes, and the company maintains the ability to renegotiate contracts or seek alternative suppliers as necessary. The company assumes the risk of increases in ingredient and packaging material costs, including conversion costs. Price adjustments occur at varying intervals depending on the product and supplier. The company considers the supply of required ingredients and packaging materials to be adequate.
Sources:
Primo Brands Corp's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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