Better Choice Company

Better Choice Company focuses on providing pet products and services that help dogs and cats live healthier, happier, and longer lives. The company offers a broad portfolio of pet health and wellness products for dogs and cats sold under the Halo brand, including foods, treats, toppers, dental products, chews, and supplements. With a multi-decade track record of success, Better Choice Company is well positioned to benefit from the growing trends of pet humanization and consumer focus on health and wellness. The company’s products consist of kibble and canned dog and cat food, freeze-dried raw dog food and treats, vegan dog food and treats, oral care products, and supplements, all made with high-quality, thoughtfully sourced ingredients for natural, science-based nutrition. Each innovative recipe is formulated with leading veterinary and nutrition experts to deliver optimal health. E-commerce is the company’s largest channel, partnering with Amazon and Chewy, and boasts a subscription rate of approximately 50% for its online shoppers. Direct to Consumer is the company’s smallest channel, representing an opportunity for future growth, with the vast majority of TruDog’s sales made on the company’s direct-to-consumer website. The company is looking to expand its direct-to-consumer offering to the Halo brand. International is one of the company’s fastest growing channels, anchored by strong distribution partnerships in Asia, and has secured $100 million in aggregate contracted revenue from 2021 - 2025. Specialty is one of the company’s most exciting channels for growth, with plans to launch its innovative Halo products in 2,000 - 2,500 new stores in 2022, anchored by partnerships with Petco, Pet Supplies Plus, and other independent pet stores. Headquartered at 12400 Race Track Road, Tampa, FL 33626, Better Choice Company has a strong digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. The company sells the majority of its dog food, cat food, and treats under the Halo and TruDog brands. Halo Elevate is a super-premium, natural pet food formulated with industry-leading nutrient levels to deliver optimal pet health, achieving 15.6% point-of-sales growth at Petco and 9.3% growth in the total Pet Specialty channel in 2022. The company raised $40 million of gross proceeds and converted $23 million of debt into common equity upon listing on the NYSE American Exchange. Better Choice Company secured anchor partnerships with Petco, Pet Supplies Plus, and Phillips Pet Food and Supplies for the national launch of Halo Elevate, and onboarded two new co-manufacturing partners for both the Halo Elevate and Halo Holistic brands. The company anticipates that Halo Elevate will be available in more than 1,500 pet specialty stores by the end of April, and in more than 2,000 pet specialty stores by the end of July. In 2022, the company reported full year net sales of $54.7 million, a 19% increase versus the prior year, with International channel delivering year-over-year net sales growth of 48% and Brick & Mortar net sales growing 72% fueled by the Halo Elevate launch. The company reported a gross margin of 27.9% for 2022, reflecting the impact of one-time rationalization of inventory.