Annual report pursuant to Section 13 and 15(d)

Revenue

v3.22.1
Revenue
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company records revenue net of discounts, which primarily consist of early pay discounts, general percentage allowances and contractual trade promotions.
The Company excludes sales taxes collected from revenues. Retail-partner based customers are not subject to sales tax.
The Company's direct-to-consumer ("DTC") loyalty program enables customers to accumulate points based on their spending. A portion of revenue is deferred at the time of sale when points are earned and recognized when the loyalty points are redeemed.
Revenue channels
The Company groups its revenue channels into four distinct categories: E-Commerce, which includes the sale of product to online retailers such as Amazon and Chewy; Brick & Mortar, which includes the sale of product to pet specialty chains such as Petco, PetSmart, Pet Supplies Plus, select grocery chains and neighborhood pet stores; DTC, which includes the sale of product through the Company's online web platform to more than 20,000 unique customers; and International, which includes the sale of product to foreign distribution partners and to select international retailers (transacted in U.S. dollars).
Information about the Company’s net sales by revenue channel is as follows (in thousands):
Twelve Months Ended December 31,
2021 2020
E-commerce (1)
$ 15,091  33  % $ 14,218  34  %
Brick & Mortar 6,766  15  % 8,982  21  %
DTC 9,397  20  % 10,778  25  %
International (2)
14,752  32  % 8,612  20  %
Net Sales $ 46,006  100  % $ 42,590  100  %
(1)The Company's E-Commerce channel includes two customers that each amount to greater than 10% of the Company's total net sales. These customers had $7.6 million and $7.0 million of net sales for the year ended December 31, 2021, respectively and $6.8 million and $6.9 million of net sales for the year ended December 31, 2020, respectively.
(2)The Company's International channel includes $9.1 million of net sales from one customer in China that amounts to greater than 10% of the Company's total net sales for the year ended December 31, 2021. None of the Company's International customers represented greater than 10% of net sales during the year ended December 31, 2020.