Connect with us

Headlines

What E-Commerce Means for the $27B Pet Food Market

It faces ‘enormous headwinds.’

mm

Published

on

The $27 billion U.S. retail sales of dog and cat food market continues to grow, but it’s facing “enormous headwinds,” according to market research firm Packaged Facts.

“For pet food, retail, marketing, and new product initiatives are hopping,” says David Sprinkle, research director for Packaged Facts. “And from a merger and acquisition perspective, the past couple of years have been nothing short of dynamic.”

Podcast: Talking Cybersecurity, and Keeping Your Pet Business Safe Online
Behind the Pages

Podcast: Talking Cybersecurity, and Keeping Your Pet Business Safe Online

Podcast: Travel Deals for the Pet Pro on the Latest “Behind the Pages”
Behind the Pages

Podcast: Travel Deals for the Pet Pro on the Latest “Behind the Pages”

Podcast: Meet the Pet Product Entrepreneur Who Turned Down Shark Tank’s Investors
Behind the Pages

Podcast: Meet the Pet Product Entrepreneur Who Turned Down Shark Tank’s Investors

But as in almost every consumer product category, e-commerce continues to upend traditional retail as more pet owners opt to buy their pet food online instead of, or in addition to, from brick-and-mortar sellers. That’s one finding from the new Packaged Facts report Pet Food in the U.S., 14th Edition.

For pet food, a side effect has been to speed up the dissolution of the pet specialty/mass channel divide that has long helped to justify the “superpremium” prices of brands sold only by pet specialty retailers, according to Packaged Facts.

Specialty retailers have for years bolstered dollar sales absent volume growth by converting pet owners to higher-priced fare. At the core of the premiumization trend have been natural products, including grain-free formulas, which have driven pet food sales growth for over a decade.

Now, however, virtually all pet food brands are available online, accelerating the “mass premiumization” trend whereby pet-specialty-type products are now widely available in the grocery and mass channels, Packaged Facts notes.

Advertisement

As online sellers including Amazon, Chewy, and Walmart battle it out, including via private labels, the upshot is downward pricing pressure market-wide even as the costs of producing pet food continue to rise.

Since the dog and cat population is not growing enough to provide much of a volume lift, pet food marketers and retailers will have to come up with new and compelling premiumization drivers in order to maintain dollar sales gains, according to the report.

Since launching in 2017, PETS+ has won 14 major international journalism awards for its publication and website. Contact PETS+'s editors at editor@petsplusmag.com.

Advertisement

FEATURED VIDEO

PETS+ Live with Candace D'Agnolo

Learn More About America's Coolest Store Winner, Bar K

Catch the replay of this PETS+ Live! Lunch & Learn webinar hosted by Candace D’Agnolo of Pet Boss Nation. This episode featured Candace on location at Bar K in Kansas City, MO. Find out how owners Leib Dodell and David Hensley implemented their idea for a dog park/restaurant/bar that owners enjoy as much as their pets do — and learn why the business took top honors in the 2019 PETS+ America’s Coolest Stores contest.

Promoted Headlines

Headlines

Great Dane Puppy Born With Rare Green Color

The owner said the situation was ‘shocking.’

mm

Published

on

A Great Dane puppy was born in Colorado with a highly unusual characteristic: She was green.

The pup, No. 8 in a litter of 9, came into the world on Oct. 14 WTNH-TV reports.

Caddy Williams, owner of the puppy’s mother, Ami, said the situation was “shocking.”

“Luckily, I had recently read an article about a green dog,” she said. “So at least I knew what was going on.”

Green puppies are thought to occur when biliverdin, a green pigment that is part of bile, comes into contact with light-colored fur, WTNH reports.

The resulting dye job lasts a few weeks and is harmless.

Williams named the dog Verdant.

Continue Reading

Headlines

Dog Daycare Franchise to Serve 750 Employees on a Corporate Campus

It opened at Wolverine Worldwide in Rockford, MI.

mm

Published

on

PHOENIX — The Dogtopia pet franchise has announced the unveiling of its first Dogtopia @ Work campus. The dog daycare and spa-only location is exclusive to the employees at Wolverine Worldwide in Rockford, MI, and will bring the company-subsidized dog daycare to its 750 employees.

With more than 100 locations across North America, the brand is “the fastest-growing provider of specialty dog daycare,” according to a press release. The Wolverine Worldwide dog daycare center is operated by franchisee Tim Parker, who also owns Dogtopia of Grand Rapids.

“Wolverine Worldwide’s employees asked, and the leadership team listened. Dog daycare was the top benefit request among its 750 workers. We’re thrilled to directly meet that need conveniently on site,” said Neil Gill, president and CEO of Dogtopia. “The corporate campus model makes perfect sense as companies seek to be pet-friendly without having to manage which dogs are current on vaccinations, remaining respectful to those with allergies and removing the risk associated with dogs of different sizes and temperaments in common areas together. This is a win-win as it provides these employees safe socialization, exercise and education for their dogs while providing Dogtopia a brand-new channel for us to share our quality daycare service.”

“It’s important for us to continue to invest in our workplace environment in a way that aligns with our values as an employer of choice, and enriches the daily experience and quality of life of our workforce,” said Blake W. Kreuger, Wolverine Worldwide Chairman, CEO, and President.

“We’re extremely excited to have Dogtopia’s presence and friendly staff at our global headquarters to provide pristine care for our employees’ pets while they help drive our business forward.”

 

Continue Reading

Headlines

Holistic Pet Food Firm Acquired by CBD Company

The Halo management team will remain in place.

mm

Published

on

NEW YORK — Better Choice Co. Inc., an animal health and wellness CBD company, announced an agreement to acquire holistic pet foods firm Halo, Purely for Pets.

Financial terms of the deal were not disclosed.

“Halo is a well-established, premium brand and falls squarely in line with our goal to build an all-encompassing, global, animal health and wellness consumer product goods company,” said Damian Dalla-Longa, CEO of Better Choice. “Over the last three decades, Halo has built a strong reputation and loyal consumer following, carving out a niche in the industry with high-quality animal products that contain whole food meat and fish and non-GMO ingredients. We look forward to working with their team to close the transaction and integrate their brand into our operating and marketing platform.”

The Halo management team, led by branded consumer food and animal health veteran CEO Werner von Pein, will continue to manage the Halo business. Halo’s name and brands are not expected to change as a result of the transaction.

“Better Choice is the ideal partner for Halo and this combination comes at an exciting time for our company,” said Werner von Pein, CEO of Halo. “As the Better Choice team brings a wealth of experience in animal health and growing consumer brands, we are eager to leverage that expertise and continue to expand our company’s footprint, while maintaining Halo’s unwavering commitment to product quality and to our pet parents’ experience.”

Bruce Linton, special advisor to the company, said: “This is a transformational acquisition for Better Choice that will help accelerate the build out of our animal health platform. The team, market and capital are aligned on the opportunity to create a world class business at BTTR, with responsible revenue growth and an ambitious research, data and analytics strategy.”

Better Choice Co.’s brands include TruPet, TruGold and Elvis Presley’s Hound Dog. Its product lines include ultra-premium, all-natural pet food, treats and supplements, with a focus on freeze dried and dehydrated raw products.

Continue Reading

Most Popular