Karat Packaging Inc.

• Karat Packaging Inc.
• Consumer-Non-Durables

KRT

We are a rapidly-growing manufacturer and distributor of environmentally-friendly, single-use disposable products primarily used in restaurants and foodservice settings. We supply a wide range of products for the foodservice industry, including food packaging, containers, tableware, cups, lids, cutlery and straws. Our products are available in plastic, paper, biopolymer-based and other compostable forms. Our Karat Earth ® line provides additional environmentally friendly options to our customers, who are increasingly focused on issues of sustainability. In addition to manufacturing and distribution, we offer customized solutions to our customers, including new product development, design, printing and logistics services. Our goal is to be a single-source provider to our customers for all of their food packaging and disposable products needs.

Our customers include a wide variety of well-known national and regional restaurant chains, including Applebee’s Grill + Bar, Chili’s Grill & Bar, Chipotle Mexican Grill, Corner Bakery Cafe, In-N-Out Burger, and Panda Express, among many others. We also supply products to smaller chains and businesses, including boutique coffeehouses, bubble tea cafes, pizza parlors and frozen yogurt shops. As our manufacturing capabilities and footprint expand, we are also beginning to supply products to national and regional supermarkets as well as convenience stores.  For the six months ended June 30, 2019 and for the years ended December 31, 2018 and 2017, no single customer represented more than 10% of our revenue. Our strong brand recognition in the foodservice industry, along with the size and scope of our distribution network, provides us with a significant advantage that enables us to acquire new customers as well as increase our business with existing customers. We believe our manufacturing capabilities as well as our ability to source products globally has established us as a differentiated, cost-effective provider of high quality products relative to our competitors.

We seek to provide our customers with the highest levels of customer service by providing high quality products in a timely and cost-efficient manner. We operate our business strategically and with broad flexibility to provide both our large and small customers with the wide spectrum of products they need to successfully run and grow their businesses. In addition to the traditional purchasing channels, to provide our customers with additional flexibility and convenience we have made significant investments to establish and grow our e-commerce distribution channel www.lollicupstore.com.

We currently operate an approximately 300,000 square foot manufacturing facility, distribution and fulfillment center in Chino, California. Due to capacity constraints and continuously growing demand, in the first quarter of 2019, we opened a second, approximately 500,000 square foot manufacturing facility, distribution and fulfillment center located in Rockwall, Texas. We believe once our Rockwall, Texas facility is fully operational by early 2020, we will significantly increase our manufacturing capacity, reduce shipping costs and expand our geographic footprint. In addition, we operate three other distribution centers located in Avenel, New Jersey, Sumner, Washington and Summerville, South Carolina. We also expect to open an approximately 190,000 square foot distribution and fulfillment center located in Branchburg, New Jersey in 2020. Our distribution and fulfillment centers are strategically located in proximity to major population centers, including the Los Angeles, Dallas, New York and Seattle metro areas. 

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