PRIVATE LABELING STRATEGY

“Private-label” (sometimes also referred to as “retailer brand”, “own label” or “store brand”) means products that are commissioned, marketed and owned by a retailer, as opposed to a manufacturer.

APFE has built its private-label business strategy around the three core fundamentals of quality, service and price. APFE strives to provide high quality products at a wholesale price below the leading national brands, enabling its retail customers to generally offer lower prices to consumers while retaining the potential to realize higher margins relative to national brand products.

Management’s strategy is to be a manufacturer of high-quality private-label products based on nutrition, palatability and quality standards that are comparable to leading national brands. Management also believes that APFE offers the broadest selection of the leading sizes and types of containers and packaging configurations for use in private-label.

APFE’s operating tenets are to:
• satisfy the requirements of the ultimate consumers (i.e. dogs and cats)
• provide a compelling value proposition to its retail customers through
the potential for enhanced profit margins

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