November 2021 Pet Insight

Pet Insight November 2021

The 2021 Category Catalysts Series

Inside Special Report: Legault Group Market Focus: Chicago Market Focus: Toronto Special Report: Private Label Pet Foods Special Report: Leashes and Collars 2021 Category Catalysts Series Q&A Interview: Al Puntillo, Mud Bay

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Special Report Legault Group

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ast summer, the Legault Group, ed in 1938 by Joseph-Émilien Mon- pany stays attuned and responsive to which owns the Mondou retail chain dou. My training allowed me to handle the needs of the communities it serves.

—both based in Quebec, Canada—made not only the accounting aspects of the In both 2020 and 2021, it was recits first business foray outside of the transaction but also the legal side.” ognized among the prestigious Canaprovince by acquiring Ren’s Pets, based Under the Legault family’s leader- da’s Best Managed Companies by the in neighboring Ontario. reputable firm DeCompany leadership “It confirms Mondou's status as a leader in its field and in the wider loitte, lauded for its has indicated the move corporate strategy, business community. We extend our warmest thanks to our devoted is in line with long-term and passionate employees, our experienced management team and our innovative approach goals to not only grow valued partners who successfully rose to the challenges we have faced and commitment to in physical store count in the past year. With the support of this exceptional team, Mondou was its employees and but also to expand om- able to provide its customers with an experience that goes beyond their the community. Denichannel capabilities. schênes said in 2021 expectations, despite the pandemic and the restrictions in place.”

The acquisition will also of the award, “It con— Martin Deschênes, CEO of Legault Group solidify and strengthen firms Mondou's status the Legault Group’s veras a leader in its field tically integrated infrastructure, which ship, Mondou had grown to 36 stores by and in the wider business community. in turn better protects its production 2001 and by 2018 during its 80th anni- We extend our warmest thanks to our integrity. Brothers Jules and Philippe versary, increased its store count to 65 devoted and passionate employees, our Legault have built a sizable enterprise across Quebec. Meanwhile, the Legault experienced management team and since they first purchased the Mondou Group in 1993 started its own line of our valued partners who successfully banner in 1983. However, the family’s dog and cat food, Vetdiet, which is sold rose to the challenges we have faced in success is rooted in humble beginnings, exclusively in Mondou stores and on the the past year. With the support of this and the measured approach to growth company website. The Legault Group exceptional team, Mondou was able to and expansion that the Legault Group also co-owns Jupiter, a company that provide its customers with an experihas taken in the last few decades re- specializes in the production of dry cat ence that goes beyond their expectaflects how well it has balanced ambition and dog food. tions, despite the pandemic and the reand responsibility in this ever-evolving The acquisition of Ren’s Pets this strictions in place." pet industry. summer not only added 35 stores to the Recent new concepts that Mondou Legault Group’s total store count but has implemented include installing Company History Jules Legault, President and co-own- also an additional distribution center sub-zero refrigeration in more than a er of Legault Group, recounts the fam- in Guelph, Ontario. "This transaction dozen stores to carry a wider variety of ily’s roots in business. “With only a is part of Legault Group's growth plan, frozen raw pet food, as well as smaller third-grade education, my grandfather which is based on expanding our activi- neighborhood stores that also offer free Jules Legault started a seed company in ties in Canada through acquisitions and services like nail clipping, dog washing, 1919, Gloco,” he told Pet Insight recent- partnerships focused on innovation," dog scales and car service.

“Smaller in size, these stores allow ly. “When he died in 1944, my father said Martin Deschênes, CEO of Legault took over the business and in 1978 he Group. "It will allow both companies to us to get closer to customers in urban asked me to join him. I had completed combine their strengths and accelerate neighborhoods,” Deschênes explained my university studies in finance and their growth in Canada by opening new in media reports. “They appeal to the accounting three years earlier and was stores through an agile and flexible ap- community. People come there, often on foot, with their animals.” working at Pricewaterhouse as an ac- proach."

Mondou created a continuing educacountant.”

Mondou Gloco, which is still running and has Jules Legault indicated the compa- tion program Mondou Academy in 2007 expanded to organic fertilizers as well, ny expects to have 76 Mondou stores led by veterinarians and vet technicians was already doing business with Mon- open in Quebec by year end, employing that helps staff stay up-to-date on indou, a company that at the time was upwards of 1,100 people. Through its dustry best practices and to further selling grain and hay for working ani- well-paced and steady growth, Mon- develop their overall understanding of mals and straw for livestock. “In 1983, dou now stands out in the Canadian animal care.

This fall—as further illustration of I suggested to my brother Philippe that pet industry landscape as much more we buy the Mondou store that we sold than simply a pet supplies company. Its Mondou’s commitment to animal welseeds and bird food to. Located in Mon- stores and employees are a trusted re- fare and in line with several municipal treal’s Jean-Talon market, this iconic source for pet owners on a multitude of regulations banning the use of aversive store is still open today and was found- animal welfare topics, which the comr Cont'd on Pg. 6

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Special Report: Legault Group r From Pg. 4

combine our strengths with the Mondou store network in order to pursue collars—the company announced it was our development. We share common removing all aversive collars from its values with this respected team in the stores following the release of a report Canadian industry such as customer

by Mondou's Comité aviseur en bien-être service excellence and a commitment animal (CABEA), which concluded that to the community and the well-being alternative techniques and products and health of animals. We are confident are now accessible to all. Aversive colthat this transaction will lars include choke be beneficial not only to “Mondou's customer is front and center with great products, clean collars and all both banners, but also to all electrostatic (elec- stores. Those things are very similar to Ren's Pets Depot. You’re finding Canadian consumers who tric), vibration, a very similar business set to what we’ve got here at Ren’s. We’re going care about their pets." to operate separate and distinct but we’re going to take all of these citronella, air and While the Legault Group synergies and best practices and apply them.

You won’t see a name ultrasonic collars works through the finer dechange.

We’ll continue to grow in Canada; they’ll stay in Quebec, and it’s for invisible fenctails of integrating its newes, according to been great so far. It’s not a roll up by any means that you see sometimes est acquisition, Ren’s Pets’ where you start hacking and whacking. It’s a genuine growth story.” the company. leadership continues to — Scott Arsenault, CEO, Ren's Pets Depot "The knowlplow ahead with initiatives edge we have of that helped the company animals and of the care they require in the everyday lives of thousands of rank as one of the fastest growing pet for their well-being has obviously come people, year after year," Pierre Leblanc, chains in 2021. In spite of the challenga long way since we started in this inMondou's General Manager, said ahead es the pandemic brought, including the dustry,” said Sarah Vaillancourt, senior of the launch of the company’s 7th cam- banning of in-store shopping in Ontario leader of the Mondou Academy and paign for MIRA, in September 2021. for significant stretches of time, Ren’s training. “Above all, Mondou wishes to Pets was ready with its e-commerce Ren’s Pets share its know-how with its customers, offerings. “A lot of people rushed that,” Across the Quebec-Ontario border, help families care for their pets in their said Larissa Wasyliw, VP of e-Commerce Ren Job and his wife Sharon opened daily lives and support them in finding and Marketing. “And it wasn’t plan B for the first Ren’s Pets Depot in 1975 as a solutions to the canine behavioral isus; it was always plan A. We were well small feed and supply store.

Overcomsues they may be facing. We have put down that path. We’d been servicing ing some initial challenges, including a a variety of measures in place to better customers online across Canada for fire, the enterprise evolved into a pet handle these types of issues and to betmore than 10 years so we’ve been dosupply depot complete with its own ter direct pet families toward personaling that for a long time. We already had 25,000-square-foot distribution center ized products and advice.” that platform, implementing the bulk of in Guelph.

Since 2019, the company inaugurated buy online, pick up in-store. Those were In the last 40 or so years, Ren’s Pets four adoption zones for cats from ressome of the things that were already in grew to 36 stores across Canada, and cue shelters at its Saint-Jérôme, Anjou, the works pre-pandemic. It wasn’t new CEO Scott Arsenault said a total of 38 Saint-Jean-sur-Richelieu and Joliette to us and we were ready.” stores are expected by the end of 2021 store locations. To date, more than 500 Arsenault said Ren’s corporate strucunder the Legault Group leadership.

Arcats found homes through the compature lends itself to an efficient method senault attributes Ren’s Pets long-term ny’s effort. of execution across all of its stores. “So Meanwhile, Mondou continues to success to being able to focus on excelwhen you’re talking to our marketing ling where it can.

“We’ve talked about support fundraising and awareness person, Larissa, we’re going to run a quality and premium and making sure campaigns both within and outside the program, it’s going to be consistent that diet is first and foremost and we’ve pet industry. Between 2018 and 2020, across the chain. If you’re talking to really fixated on what we’re good at,” he the annual Mondou Mondon fundraisJason, our VP of merchandising, he’s said.

“We have a pretty storied history, ing campaign for shelters has raised going to do the buy-ins, we’re going to we’ve been around for 40-plus years. more than $406,000 in donations. Its execute and you’re going to get support We have really concentrated every campaign benefiting the MIRA Foundafrom marketing and you’re going to sell thought on your pets’ best life and for tion, which offers free guide dogs and through and you’re going to be excited dog and cat primarily.

We understood service dogs for people living with viabout it,” he said. “If you invest with us, that services were something that we sual impairments, physical disabilities you’re going to see results and it’s the didn’t want to be part or couldn’t be the and youths with Autism Spectrum Dismentality that it’s one check, and you’re best in the world at, so we made sure order (ASD) has also raised more than not dealing with multiple decision makthat we partnered with groomers and $2 million in six years. ers, and I think that’s been something trainers and dog walkers.”

“Mondou's objective is to raise an adArsenault said of the acquisition, "We ditional $430,000 to support this cause r Cont'd on Pg. 8 are proud to join Legault Group and PG 6 / PE T I N S I G H T

we feel so strongly about, and to give back to the community, one of the pillars of our brand and mission. On behalf of the entire Mondou family, I wish to take the opportunity to warmly thank all our customers, employees, suppliers and our media partner Rouge FM, who allow us to make a real difference

Special Report: Legault Group r From Pg. 6 that we’ve been able to develop in my 10 years and continually show growth.

Anybody could do a buy-in and anybody could get a cheap deal, it’s the ability to execute.”

The tight battery of initiatives and innovation that has set Ren’s Pets on its course of success this year, including expanding infrastructure and embarking on partnerships like with DoorDash to become a leading supplier of raw foods, as well as continuing to build out its loyalty program, has not changed with the acquisition. Arsenault, who had served as President of Ren’s Pets for a decade before receiving a promotion to CEO by the Legault Group, credits the new owners for setting everyone’s mind at ease because at Ren’s Pets foundation, it is a place for people to learn and grow. “They were adamant about sending a message to our team and distributor partners that we aren’t going anywhere,” he said. “So they left the whole leadership team intact and they signed us up and retained us so they were understanding of the fact that anytime there is a transaction, everybody is like, ‘What’s happening? Is Scott sticking around? Where is Larissa going? Are they going to keep my boss?

How does this affect me?’ By doing that, they were clearly saying to everybody it’s ‘business as usual.’”

Because with a decade of experience helming Ren’s Pets, Arsenault is fully invested it its success on multiple fronts.

“What I’m most proud of here is we have multiple examples of people growing personally and professionally,” Arsenault continued. “I can’t count on my fingers how many people have started at $12 or $13 an hour as an associate and have worked their way through to team lead, assistant manager, manager and market manager. I’ve seen people move on to have office corporate jobs whether it’s in inventory, training or new store opening and construction; these are all people that started as associates. They’ve worked hard and have learned the business beside us and I’ve seen them buy houses, buy cars, have babies. We’ve experienced a lot of hardship. When you’re with people for 10 years you’re going to see some deaths PG 8 / PE T I N S I G H T

whether it’s pets or family members.

We’ve navigated through that really well and been a part of that for people.

When I see people’s families growing and doing well personally as much as professionally, honestly, that makes me ecstatic.”

It’s a sentiment that the Legault Group can get behind. "It is very important for us to preserve the unique character of Ren's Pets and respect the original concept that has made the company's success and reputation for over 40 years," said Jules Legault. "This acquisition therefore represents collaboration and continuity for Ren's Pets, since the brand and all the personnel, including the current management team, will remain in place."

Arsenault shared a tangible example of how the parent company is weaving in the unique culture and history of Ren’s Pets, with a focus on the collective team, following a tour of Legault’s Montreal office. “If you want to talk about environment to work in or people that are conscious of creating something special, they probably had about 100 stand up desks, they had some super nice cappuccino machines, they had a yoga studio and a workout facility,” he said. “Little things that I was impressed with: when you went into a washroom where you work out, there were handicap accessible showers and they really had thought about everybody with watering stations, gender neutral washrooms. They’ve been very intentional about making this workplace safe.

Electric charging stations for cars, bike racks, really open ceilings, live plants in the buildings. They’re growing and expanding and take this building and make it a place where people can be proud of and want to work and have different kinds of workspaces. Their emotional intelligence is high because when I got there, they asked us to name one of the board rooms, really close to where the founders’ rooms were, and they had named all of the board rooms. And they said ‘we want to name one after Ren’s so you pick a name.’”

Legault shares these values with Ren’s, said Arsenault, that if you take care of your team, they’ll take care of the customers. “There’s a lot of values about customer and community,” he

said. “They’ve given away millions of dollars in support of pets and families in Quebec and so they’re very heavily invested in community, which we are. And then their customer is front and center with great products, clean stores. Those things are very similar. You’re finding a very similar business set to what we’ve got here at Ren’s. We’re going to operate separate and distinct but we’re going to take all of these synergies and best practices and apply them. You won’t see a name change. We’ll continue to grow in Canada; they’ll stay in Quebec, and it’s been great so far. It’s not a roll up by any means that you see sometimes where you start hacking and whacking.

It’s a genuine growth story.”

One of the first endeavors for the Legault Group now, post-acquisition, is to open its Drummondville (Quebec) plant to further develop its manufacturing sources to protect product quality, production capacity and continue to grow, Legault said. “We will also put a lot of emphasis on ensuring the integration of Ren’s Pets. We want to do every step right so that the synergy between the two companies is well established and they can benefit from each other’s successes. This will always be done by taking a rational approach, conducted with respect and rigor.”

And Arsenault is keeping his eye on the ball as well with a number of planned store openings. “We have a couple of exciting opportunities still to open up within this year and then signing leases for next year. Doing supply, making sure we have a lot of inventory.

Finishing stores we just opened and are about to open and then really planning for the stores that open next year. We’ll probably do another seven stores next year on top of our 38. We’ll be 48 to 50 by the end of next year.”

There’s not enough Ren’s Pets out there, he said. “We have a great program to be signing people up pre-opening and it’s been a super success to be in a new market. It just gives us a lot of encouragement and gives us fire to keep doing more. We think the mission we’re on for pet’s best life is being served through Ren’s, and we just want to do more of that.”

Market Focus Chicago

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hicago is home to a vibrant pet community. The city is the birthplace of large chains, such as Kriser's and Bentley's Pet Stuff, as well as a thriving independent community. Currently at 60 single store independent pet specialty locations, the total Chicago store count has grown by 15 in the past four years The growth of the pet industry has continued year after year, and many pet retailers have noticed the increasing number of retailers joining the marketplace.

AdreAnne Tesene with Two Bostons spoke about the current growth status of the marketplace and how it has created a healthy, competitive market.

“There are a ton of pet retailers in the Chicago area. One might think this is a negative thing, but it certainly pushes all of us to be playing at the top of our game,” she said.

IPP

Founded by Jeff David, Mike Foss and Ted Root, Independent Pet Partners (IPP) is the parent company of four store brands located across the US. Created to help independent pet retail brands further succeed in the pet industry, IPP uses its expertise to promote its PG 10 / PET I N S I G H T

acquired pet stores while keeping the components that made them flourish and succeed in the beginning intact.

Loyal Companion, Kriser’s, Natural Pawz and Chuck and Don’s are the four stores under IPP, but each operate independently and in their own unique way.

There are currently 15 Kriser’s Natural Pet stores in the Chicago marketplace. The company has more than 1,400 employees and several in-store service options available to pet parents.

Select locations have grooming, daycare, training and veterinary services.

Kriser’s curates high-quality products and supplies, and its staff is well-educated and readily available to give pet parents advice.

Pet Supplies Plus

Pet Supplies Plus was founded in 1988, and now has 24 locations in Chicago. There are approximately 580 stores throughout the US. The company has remained focused on expanding and growing the company and looking for franchise opportunities.

“Chicago is a fantastic market for what Pet Supplies Plus offers and we’ve been able to grow our brand presence throughout the area,” said a Pet Sup-

plies representative. “While we’ve already established a strong footprint in much of the Chicago area, there is still availability to grow in specific neighborhoods. Pet Supplies Plus is proof that local retail works when it is powered by a passion-driven franchise owner, backed by a large organization with corporate locations and the ability to provide top-of-the-line processes and services for all. We’re excited about the continued strengths of the pet retail industry and are on track to sign 100 new store agreements by year end throughout the US.” “We’ve seen this across the board among millennials and the new age pet owner: they are putting off having kids and want to experience life with their pet as their sidekick,” the representative continued. “From attending parties together, brunching, running races or walking the farmers markets, it’s not unusual to walk anywhere throughout Chicago and not see people paired up with their pet. Pet parents in Chicago want more for their pets, better health products, ingredients and high-end grooming options. Wellness habits and r Cont'd on Pg. 12

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Market Focus: Chicago r From Pg. 10 health-conscious decision making is top of mind for pet owners. They want to see specialty foods, natural and organic options that they have already researched online, available in their local stores.”

needs of each pet. Alongside these services, Aeslin carries healthy, all-natural pet supplies in-store. The company prioritizes carrying several made-in Chicago product lines such as toys, treats and apparel.

PetPeople

With a special interest in high-quality, nutritional foods and pet products, Mike and Trish Elkind founded PetPeople Enterprises to ensure pet parents are getting the best options for their pets.

There are six locations in the Chicago area, and all have a dedication to providing pets with the best foods, natural products and well-educated staff members.

The company started when the Elkinds purchased three PetPeople locations in Columbus, OH in 2000. From there the company continued to expand from the Midwest to the East Coast.

Since 2018, Carrie McDermott has been the CEO of PetPeople, and according to her, the company has a priority on remaining current and keeping up with the ever-changing market.

“It’s so important because that’s what change forces you to do, is to look at new ways to improve and be better while making sure you’re keeping up with the customer demand and keeping the customer need always in front of you— whoever your customer is; whether it’s your reader of a newspaper or the pet parent,” McDermott told Pet Insight in a previous interview.

The retailer currently has 75 brick and mortar store locations. PetPeople has continued to focus on expansion and growth, and in doing so, building a strong, irreplaceable team that can match that growth.

Aeslin Pup Hub

Aeslin Pup Hub was founded in 2016

by Leah Bindig. There are three locations in the Chicago marketplace, and each has a focus on daycare, boarding and grooming services. According to the company, each service is tailored and designed based on the individual PG 12 / PET I N S I G H T

before her dream became a reality. She decided to open a pet retail store, and a year later was able to open a dog daycare and grooming store. Ten months later, she opened a daycare and boarding facility.

“What started as one small store now has grown to several,” Bindig said. “Much of our growth is definitely attributable to hiring amazing people who share the same core values about pets and pet owners.”

Two Bostons

The founding story of the company began when Bindig dug deeper into what she was passionate about and realized that spending he day with dogs was the answer. She followed her passion and started looking for dog daycare jobs. She was hired in 2011 and absorbed as much knowledge about the industry as she could, everything from pet retail to daycare and overnight boarding. According to Bindig, she learned what was important and what wasn’t, which later helped her apply that knowledge and those experiences to her own boarding facility.

In 2015, Bindig was able to finally begin working on her dog daycare facility, but quickly realized there were a lot more obstacles she had to overcome

Two Bostons was founded by Andy and AdreAnne Tesene 15 years ago. There are currently four locations in the Chicago marketplace.

The pet retailers have helped more than 100,000 families find the right products for their pets while helping educate them along the way. The company customizes recommendations and advice in order to find pet owners the best item or food solution for their pet’s individual needs.

AdreAnne Tesene with Two Bostons said, “When we opened almost 17 years ago, there weren’t many stores like ours around. What enticed us is this is where we lived. We are truly a local family-owned business.”

“Pet parents in this area are well educated and are curious about what it takes to make the best decisions for their pets,” Tesene continued. “They ask great questions and are open to suggestions to change things up if needed.

Our loyal customers understand the importance of supporting local business, but also require shopping convenience because they are busy people. They enjoy attending our events, both in-person and virtually. We need to be able to offer both options moving forward.”

“We have a plan for continued growth, but right now we are focused on fully staffing our current locations and ensuring all of our teams are strong and solid before adding any additional requirements to any of our schedules,” Tesene said.

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Market Focus Toronto

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s the capital city of Ontario, Toronto has the largest population in Canada and the fourth largest in North America. Toronto is well-known for being a hub for the media, publishing, telecommunication and film production industries, but started its economic growth in the 19th century as a major port distribution.

Since then, several industries have flourished within the marketplace.

Toronto is home to several leading independent pet retailers of all types and sizes. Taking a closer look, pet retailers within the marketplace have measured their success in Toronto based off of numerous factors including the distinctive neighborhoods, loyal and educated pet owners, and the simple fact that the marketplace is continuously growing year after year.

“What I love about Toronto in general is that we are a group of neighborhoods melding into one large city,” said Eva Eiduks with Furballs Pet Stuff. “Each neighborhood has its own distinctive 'flavor' and look. My customers are not only customers, but they are also neighbors and friends. They love and care for their pets. Their pets are part of their family. They are loyal, fun, interested and interesting—just like our neighborhood.”

Eiduks continued, “I find the customers I have do a lot of research and really use their knowledge and judgement to decide what is best for their pets. These days I have a lot of new pet owners, and they are so appreciative of the suggestions and knowledge that the Furballs staff have. In terms of buying for the store, the customers have access to information regarding new and interesting items and will often ask for the latest product on how to make their pet happy, healthy and busy! Although

PG 14 / PET I N S I G H T

we are all going through this terrible pandemic, I still think the future looks bright every time I see a customer or deliver something for their pets. Life

during those times seems a little more normal.”

Retailers such as Furball Pet Stuff have been able to thrive in the pet industry due to marketplaces like Toronto that continue to present them with ample opportunities for growth, expansion and success. The unique, diverse population of pet owners seek the best for their pets and leading retailers in the marketplace ensure they are able to.

Bark & Fitz

Bark & Fitz has many locations throughout Canada, and strives to only carry high-quality, premium products for pets and their owners. Bark & Fitz also offers grooming services and several solutions for pets with dietary restrictions, behavioral and training problems. The company has 19 locations and has become one of the leading pet retailers within Toronto.

“Toronto is a world class, high growth marketplace and host to a dog population of a quarter million and growing,” said Garry Millage, President of Bark & Fitz. “Owners are increasingly seeking out high-quality products and boutique shopping experiences, which falls uniquely into the business model of Bark & Fitz.”

“Pet owners are increasingly treating

their pets as members of their family, whether they are with or without children,” Millage continued. “In general families are eating healthier and gravitating to healthier lifestyles. As part of the family 'unit' pets are being introduced to the same lifestyle choices.

Owners are educated on the needs of their pets and expect their local pet shop to be able to provide them with a knowledge-based shopping experience for their pet. From food and treat selections through to environmental needs such as leashes, safety harnesses, coats and health care products. The local store owner becomes a trusted partner in the well-being of the family pet.”

“Bark & Fitz is continuing its growth plans in order to continue to make our boutique shopping experience more widely available throughout the city and is welcoming all parties interested in developing a franchise store,” he added. “We are currently testing home.

Delivery in several locations and we offer a wide range of products through our e-commerce site for those that are not able to get to a store. Inventory is very important, and we have made special provisions to ensure our stores are well-stocked and price protected in the face of the global supply issues that all retailers are not being subjected to.”

Big Al’s

Big Al’s is known for being its strong e-commerce presence, but the company has had a large brick-and-mortar footprint for more than 35 years. The company focuses on serving a niche market: aquarium supplies. The company carries everything from pond supplies to pet food and accessories. Big Al’s is dedicated to providing the best products to pet owners at a competitive price. r Cont'd on Pg. 16

Market Focus: Toronto r From Pg. 14 When Minor Bros Country Living ically spends more than $900 annually The retailer has approximately 14 started, the location was 150 years old on average, and also expects high-qualilocations throughout Canada. With its and needed major repairs, which oc- ty service and products, which makes us e-commerce division starting in 1999, curred from 1967 to 1973. Since then, a top destination for these pet owners.”

Similar to several other pet retailthe company was able to offer custom- the company has opened several stores ers great discounts without sacrificing over the years, remodeled others and ers, Grover mentioned the uptick in pet its large product selection. Big Al’s has expanded its online presence. The com- adoptions led to an increase in sales.

“One distinctive trend we have seen grown from its original 10,000 square- pany has kept its close family ties at the was the increased amount foot warehouse in 1999 to a more than “Toronto is a world class, high growth marketplace and host to a dog of people who began to 100,000 square- population of a quarter million and growing. Owners are increasingly adopt pets once the inifoot distribution seeking out high-quality products and boutique shopping experiences, tial period of uncertainty began to loosen up surcenter, which alwhich falls uniquely into the business model of Bark & Fitz.” rounding the Covid-19 lows the company — Garry Millage, President, Bark & Fitz pandemic,” he said. “The to stock more than increased adoption rates $4 million in inventory including more than 11,000 aquat- center of everything they do. In 2018, a resulted in a significant lift in sales, ic products from more than 100 differ- new head office and warehouse build- and also interest in pet care among pet ent manufacturers giving customers a ing was built since the company had im- owners. What we see going forward is mensely grown. a continuation of care for Covid-generwide range of options. ation pets for the next 10+ years during Pet Valu Freedom Pet Supplies Pet Valu has more than 600 stores their lifecycles, and we look forward to John and Kelly Ayre started Freedom Pet Supplies (FPS) in 2001. Soon across Canada, which consists of sev- being the provider for our Devoted Pet after, the couple went to the PIJAC Na- eral banners: Pet Valu, Bosley’s by Pet Lover’s pet food and supplies for years tional Tradeshow in Toronto to start Valu, Total Pet and Tisol Pet Nutrition to come.”

The company has noted numerous their journey in the pet industry. FPS & Supply. For more than 40 years, the started in a 15,000 square-foot ware- company has provided pets with all avenues for opportunities and growth house, and with a mission of being a they require to live happy, active and throughout Canada but has a preference successful sales and marketing com- long lives. The company has become the for smaller towns and neighborhoods.

“We see more than 600 opportunities pany that specializes in high-quality largest small format pet specialty retaildistribution. Today, FPS works out of a er with many of its stores locally-owned for new stores across Canada over the long-term, driven by our unique abili120,000 square-foot facility, has more and operated.

“Toronto is the largest and most di- ty to enter all types of markets—from than 100 employees and is focused on improving its business such as adding verse city in Canada, which represents urban cities to small Canadian towns,” more delivery trucks, working to be- our Devoted Pet Lovers (DPLs) most he added. “As we work to execute this come carbon neutral and expanding broadly,” said Tanbir Grover, Chief expansion plan, we can expect a signifiits freezer sections. Throughout the Marketing and Digital Officer. “With its cant portion of these openings will be in years, FPS has continued to invest back strong diverse population and growth the Toronto market. We recently estabinto the company in order to ensure its projections in both people and pets, it lished a leading position in omnichanpartners, employees and consumers are represents an ideal market for Pet Valu. nel for Canadian pet retail by linking well taken care of. The company puts its This is also a market that is invested our 'Just-around-the-corner’ retail netemployees and partners at the heart of in their pets and their healthy life- work with our fully transactional ecomeverything it does, as FPS believes ‘they style, which aligns with our brand and merce website. Our ‘Shop Ahead’ model promise. Moreover, we are also able to is now evolving into a fully integrated are the heart and soul’ of the business. localize our product assortment based 'Click and Collect' that allows our DPLs Minor Bros Country Living Minor Bros Country Living has seven on that diversity and serve DPLs with to buy online, then pick up in any of our locations and has always been a fam- products that meet their specific needs locations when it’s most convenient to ily-owned and operated agricultural while reaching them in whatever shop- them. Earlier this year we also finished rolling out a nationwide direct-to-cusbusiness. The company started in 1964, ping way they choose.” tomer ecommerce capability—shipping “The Canadian pet market can be and ‘Grandpa Wayne’ was the man bedirectly to customers’ homes from our broadly segmented into three primary hind the counter when the company first started. According to the compa- customer segments: Devoted Pet Lov- warehouses in Vancouver, Calgary and ny, Wayne can still be found around the ers, Pragmatic Pet Owners and Indul- Mississauga—covering all 10 provinces retailer’s head office. Wayne’s son, Tim gent Pet Owners,” said Grover. “Devoted and bringing more convenience to our Minor, currently owns and operates Pet Lovers are the most-discerning seg- DPLs as they shop. We will continue to the company. The staff is dedicated to ment—they love their pets, treat them focus on delivering a world class DPL producing high-quality feeds for all life as family, and make less price-sensitive experience that will not only benefit Topurchase decisions. This audience typ- ronto but all Canadians coast to coast.” stages of a wide range of animals.

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Special Report

Private Label Pet Foods

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anufacturers of private label pet ers no longer view private label as just trucks of chicken fat, we might only get foods are still navigating the multi- a less expensive alternative; they’re eight. You can only produce with what tude of supply side logistical challenges looking at a private label as a stand- ingredients you have in house. So that’s that have emerged these 20 months af- alone brand, with its own brand equity why we’ve stopped on innovation with ter the onset of the pandemic, whether and nutritional philosophies that make own brands, and all the retailers are it’s ingredient and materials sourcing, products competitive against nation- saying ‘get me what you can get me, as labor shortages or some combination of al brands,” said Heather Govea, Chief soon as you can get it to me.’ We’ve all both. Meanwhile, some consumers are Commercial Officer for Alphia. “Private done a bit of SKU rationalization, like ‘if coming around to the I take this away, can appeal and quality of “Pet care continues to be a great category to be in. For Red Collar, it all you add more proprivate label brands starts with our associates and an industry-leading quality and food safety duction over here?’ and understanding and we’re like, ‘yes.’ and associate safety program. Building a sustainable, profitable and that these products growth-oriented business will always been in our DNA at Red Collar. The So we’re doing those no longer mean a less industry-wide challenges we face today as manufacturing partners in pet types of things right expensive version care will pass. Having weathered the storm at Red Collar and built an even now. It’s very supof a name brand. In more resilient business through investing in our plants and people, we are ply side-oriented, to managing consumer well positioned to be the partner of choice for our customers and their pet the point I’m on a demand on their end, weekly rotation with parents.” —Chris Hamilton, CEO, Red Collar some pet retailers my sales guys in the have also indicated plant to pack out orthey’re bolstering their own private la- label is no longer just chicken and rice ders. That’s how focused we’re on it. It’s bel offerings because there are fewer diets. Alphia is helping retailers move all hands of deck.” moving parts. It’s a win for all parties: to more solutions-based diets (sensitive Govea said, “The industry is witnessretailers have more oversight and are stomach, sensitive skin), giving their ing the most disrupted and unique less depending on third parties, and products the same consumer appeal marketplace anyone has seen since the consumers can have confidence that and solution-based stories as national inception of super premium pet food. if the retailers are willing to put their brands. We help our private label cus- We’re taking that challenge head-on by name on the packaging, they must be tomers articulate nutritional platforms, leveraging our national footprint and trustworthy and of excellent quality. obtain and design quality packaging, our scale to help our customers win in “Increased demand, product prolif- meet strict label requirements and even store.” eration online and declining fill rates help distinguish claims that appeal to Staying ahead of these complicahave also led us to more aggressively today’s consumer.” tions remains top priority for Red Colgrow our private label offering,” said Consequently, “We’ve seen tremen- lar Pet Foods, said CEO Chris Hamilton.

Chris Rowland, CEO of Pet Supplies dous amount of growth in these areas “Challenges from the pandemic will Plus. “This allows us more control on and we’re seeing private labels offer continue, so making sure we continue the supply chain and to be less reliant up some tough competition,” Govea to build a culture that attracts and reon vendors that decide to move exclu- said. “Private label has always been a tains top talent across all our sites and sivity away from the independent pet fast follower but based on growth and headquarters is job No. 1 because our channel.” consumer demand, we’re starting to see associates make all the difference,” he Brannon Dixon, CEO of both the private label beginning to lead in these said. “Second, continuing to build deep Feeders Supply and Chowhound Pet areas before the segments are fully es- partnerships with our suppliers has Supplies banners, said earlier this fall, tablished.” helped ensure we continue to be able to “With private label, we’ve gone from And private label suppliers are clearly plan, source, make and deliver for our zero to private label being one of our feeling the strain. “We haven’t spent any customers. And third, continuing to intop gross profit producing brands. And time on innovation. We’re just trying to vest in the pet category and consumer we just launched our own dog food pri- get orders out the door,” said Scott Mer- insights and working with our partners vate label brand six weeks ago. We’ve rill, VP of Sales for Sunshine Mills. “So to bring those insights to life will allow got a list of categories and items we’re we’re cutting at a higher rate than we all us to stay on and ahead of the trends in continuing to build. We’ve still got a would like to see, but our focus and our pet care.” bunch of stuff on the ocean, which is a energy are all geared toward producThat these suppliers have built and logistics nightmare. New products com- ing orders and getting as much out the cultivated fruitful partnerships with ing in and we’ll continue to expand our door. And we’re just dealing with dif- their customers has helped all parties private label.” ferent headwinds, whether it be Covid handle the difficulties this year with The popularity of private label can be or Covid in quarantine. Then you’ve got grace and understanding. “We’re just traced directly to the changing public carrier issues and carrier delays. And r Cont'd on Pg. 20 perception of this category. “Consum- then you have suppliers: if we order 10

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Special Report: Private Label Pet Foods r From Pg. 18

ty side that we could generally move it over to owned brands. And then we’re having open conversations over what’s leveraging from that all the efficiencies going on with our supply chain, what’s that we have in the plants and then it going on with our orders,” said Merrill. essentially equates to the price on the “If we push this order a day or two, then shelf for the customer. We’re just slowly you can get more of it because the innavigating our way through this. We’re gredients are coming on the opposite side in here. There’s cerof the pandemic but “Consumers no longer view private label as just a less expensive tain policies and proalternative; they’re looking at a private label as a standalone brand, with it sucked up so much cedures we’ve got to material and product its own brand equity and nutritional philosophies that make products complete before we on the supply chain competitive against national brands. Private label is no longer just can ship the order. in the beginning, chicken and rice diets. Alphia is helping retailers move to more We’re having open and now it’s rearing solutions-based diets (sensitive stomach, sensitive skin), giving their dialogue of what’s it’s ugly head on the going on, and they’re products the same consumer appeal and solution-based stories as national back side. Even if brands. We help our private label customers articulate nutritional flexible. They’re short everyone goes back platforms, obtain and design quality packaging, meet strict label on labor. Everyone to work tomorrow, requirements and even help distinguish claims that appeal to today’s is working together. we’re still six months consumer.” — Heather Govea, Chief Commercial Officer, Alphia Certain customers, digging ourselves we’re having weekout of the hole we’re ly calls to go over procure unique and differentiated in- in just to stay even, let alone get ahead.” orders, what’s going to or not get progredients.”

But there’s much reason to remain duced, so they’re aware of what’s going When there is some breathing room, optimistic, said Hamilton. “Red Collar on in real time, or as close to real time Hamilton shares what he’s noted in has been on a tremendous growth traas possible. The lines of communicathe category. “Premiumization, health jectory both organically and through tion have opened up dramatically to the through science, the explosive growth acquisition,” he said. “After opening for point that we’re getting more transparof treats, to name just three, are all business in December 2018, we closed ency on forecasts, on orders and it’s not trends that continue to grow and show shortly after on our first acquisition. even so much promotional driven conno signs of stopping. At Red Collar Pet Early in 2019, we successfully acquired versations. It’s just ‘what can you get me Foods, we have continued to invest in Hampshire Pet Products with the help and can you get me most of this’ type our capabilities, plants and associates of Arbor Investments, our ownership conversations, and what’s the timing?” to capitalize and stay ahead of these group, and we have never looked back.

Outside of product, sometimes the trends. We’ve invested in our national We’ve added capabilities that have delays come from packaging, said Merdry food network and can make all rec- helped us grow the topline despite all rill. “If you run out of a bag or packagipes including meat first premium and the challenges through the pandemic. ing or there’s a reprint, the printers are super premium recipes and diets, and As a trusted partners, we have what I dealing with the same issues we are,” as one of the largest treats partners in believe is an enviable track record on he said. “Plastics are being stuck at the North America, we continue to invest in quality, food safety and associate safety ports, or paper is in short supply, cardthings like automation, packaging and that sets us apart from competitors.” boards is in short supply. Lead times ingredient dosing and blending to keep In essence, “Pet care continues to be went from reprint in eight weeks and up with demand.” a great category to be in,” Hamilton conwe’re like 16 weeks on a reprint. EveryMerrill said if there were an oppor- tinued. “For Red Collar, it all starts with one’s gotten used to longer lead times tunity to refocus on innovation, “Once our associates and an industry-leading and there’s some sort of dilemma; it’s a we get dug out of the hole then we can quality and food safety and associate moving target on what the dilemma of start talking about fun things like we safety program. Building a sustainable, the day is.” want to bring in some additional wet profitable and growth-oriented busiAlphia, similarly, can rest on its comfoods,” he said. “And then we’ll work ness will always be in our DNA at Red bined experience of more than 70 years with our retailers when the catego- Collar. The industry-wide challenges we to reassure its partners in these uncerry reviews come up to say ‘hey, here’s face today as manufacturing partners tain times. “That foundation was built what we saw. Here’s what’s in the in pet care will pass. Having weathered on trust, food safety and high-quality market, and then how do you develop the storm at Red Collar and built an products,” said Govea. “Alphia has only some products around that.’ One of the even more resilient business through been an organization for 18 months, things that I was working on and was investing in our plants and people, we but we’ve combined remarkable legacy very adamant about prior to all this are well positioned to be the partner of organizations to create the best in the constraint was dual proteins. We see a choice for our customers and their pet industry with the largest super premilot of dual proteins on the pet special- parents.”

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um manufacturing footprint to ensure what we deliver to a private label retailer has the same high-quality standards that other brands would have. Bringing scale and the ability to reach consumers across the country, we work to ensure we leverage our ability to innovate and

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Special Report Leashes and Collars

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hen it comes to the leashes and collars category, manufacturers have undertaken the vast commitment of providing safe, effective, sturdy and versatile equipment to pet parents and their retail partners. There are several different collar and leash options, each providing something as simple as an easy walking solution or for more intensive training purposes. Anything from a martingale or head collar to a harness or slip collar, leaders within the category have shown their dedication to educating pet parents to ensure their pets are receiving the correct level of care or training to live their happiest and longest active lives.

At Alsip Home and Nursery in St. John, IN, the most impactful innovation within the leashes and collars space hasn’t necessarily been whittled down to a specific product or line. Rather, it’s the growing volume of options that are available to pet parents. “The variety of harnesses has been the biggest investments for us,” said Sandy Richwalski with Alsip Home and Nursery. “With the growing number of households having more than one dog, we have seen an upsurge in customers wanting a harness that helps control their dogs while walking. Unfortunately, harnesses are not a one size fits all category.”

Similarly, for In the Company of Dogs, in Billerica, MA, the business has seen the rise in options allowing pet owners to curate what their pet gets as the most impactful means to expand the category. “More choices in personalization have driven growth in the category,” said Kim Kavanagh of In the Company of Dogs. “Martingale collars with quick release buckles. Use of materials that are lightweight, antimicrobial, odor-proof and stain resistant such as BioThane.”

Within the next five years, Richwalski predicts the collar and leash category will provide a fusion of sturdier choices blended with fashion forward options.

“In the future, I see more durable options combined with fashionable items coming out,” she said. “People are getting more vested in their pets and are willing to splurge on fashion.”

Changing consumer demands in the past year, specifically in the leashes and

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collars category, have forced suppliers in the space to make changes and additions to continue meeting pet owners’ needs. “We have noticed the increased demands for new and innovative leashes, especially with so many more people becoming pet parents,” said Brollytime's Greg Edson. “We have focused this year on just making sure we have ample supply to ensure our retail partners never run out of stock.”

“Lone Wolf has noticed an uptick in demand for more colors and more choices in the length of the leashes, especially with some specific types of training,” said Elizabeth York for Lone Wolf Pet Products. “There has been a sharp increase in demand for show collars and show leads. To meet these demands, not only have we doubled our staff but, we've added new color combinations and rope widths to accommodate our customers. We have also streamlined our logistics to improve turnaround times.”

“Pet ownership has increased over the past few years dramatically and pet parents know they can rely on our comfortable and durable leashes to keep their pets safe,” said Leah Angelos for ZippyPaws.

“There has been a lot of innovation within the leash and collar categories over the last couple of decades and this continues to boost consumer interest in high quality, feature-rich accessories,” said Bryant Baxter for EzyDog. “EzyDog has long been known for our unique collars and leash systems. We believe there is a perfect accessory solution for every dog out there and, as such, we continue to adapt our line to accommodate these needs. This past year we introduced more color variety to products within these categories including a new corduroy range. We also introduced a slimmed down version of our popular Road Runner Leash which allows hands-free walking for smaller breeds.”

“Demand for leashes and collars has risen quite a bit this year,” said Cynthia Barlow of Up Country. “In addition to onboarding many new accounts, a lot of our retailers have increased their online presence as well. As we heard in the news, the adoption rate in 2020

and 2021 increased dramatically, thus, so did the demand for new pet accessories. Due to Covid, many more people are shopping online, working from home with their pets, and taking them for walks. Dogs are being viewed more and more as valued family members who deserve nice things too!”

Suppliers know that with help from retailers, pet parents have become well-educated on the leashes and collars category and from there are able to select product lines which meet their demands and specific requests, such as odor-proof, a particular color or style or added comfort for both the pet and pet owner. Education also allows for suppliers and retailer to dispel myths and misunderstandings surrounding the category, which suppliers are intent on diffusing. “Many pet parents are concerned about the safety and security of leashes and we really take that to heart," Edson said. "We manufacture a patented four-finger-hole dog leash that provides maximum comfort, support and safety.”

“Lone Wolf has a close working relationship with our retail clients in order to ensure customers have current and correct information regarding proper sizing, application and use of our leashes, grooming loops, multipurpose leashes, traffic leads etc.,” York said.

“People may think that high-priced leashes and collars are the only ones that will keep their pets safe,” Angelos said. “At ZippyPaws, we pride ourselves on pairing high quality materials with eye-catching designs, without costing an arm and a paw.”

“The benefits of having the right gear cannot easily be comprehended without experiencing it firsthand or having someone explain it to you,” Baxter said.

“Not all leashes and collars are created equally, and a driving factor of that stems from the fact that different solutions are fit for different customers. A basic leash might seem like the solution a customer thinks they need but, if they have a strong pulling dog, a shock absorbing or training leash could make a world of difference while enhancing their experience as a pet parent.”

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2021 Category Catalysts

The annual Category Catalysts series give the Pet Insight staff the opportunity to honor the pet industry’s exceptional suppliers who have been driving incremental growth in their categories. These remarkable manufacturers are paying attention to their retail partners and delivering solutions that fill a void and resonate with pet parents. This year, suppliers further demonstrated their commitment and loyalty to retail partners by providing open communication and ensuring pet owners could find what they need in stock. Their product lines help to enhance physical and digital aisles in addition to improving the shopping experience at both pet specialty retailers’ storefronts and while shopping those retailers’ company websites.

Fish Oils: Nordic Naturals

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ordic Naturals, a leading fish oils supplier in both grocery and pet industries, has continued its commitment to providing consumers with all-natural, high-quality fish oil products and supplements since its inception.

Derek Bodkin outlined some of the recent demands he’s noticed this year alongside the recent challenges and adaptations the company has made.

“Recent consumer trends show that more pet parents are actively seeking out top quality omega-3 fish oil products with high levels of EPA and DHA as they discover how important these essential fatty acids are to overall pet health,” said Bodkin. “Since the global pandemic contributed to a significant increase in pet adoptions, product supply chain issues became more challenging this year. Nordic Naturals has worked very hard to ensure we have plenty of our top-quality omega-3 products on hand to meet this increased demand.”

The company has dedicated time to

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ensuring its website is user-friendly and easy to navigate so consumers can easily access and educate themselves on Nordic Naturals’ product assortment.

“Nordic Naturals offers quality information and research about the benefits of omega-3 fish oil for pets on our website, and in our literature,” he continued.

“We also provide product transparency with certificates of analysis that document the purity and freshness of every bottle purchased, available on our com-

pany website.”

Bodkin added, “Nordic Naturals began delivering top-quality omega-3 fish oils back in 1995. Shortly after that, we saw that pet companions rely on omega-3s for health just like people do. Today, we're proud to be the No. 1 fish oil brand in the US, thanks to our superior quality, third-party testing, and the support of health professionals—including veterinary experts—across the nation.

Our products for pets undergo the same meticulous purification and distillation practices that we employ for our human products in order to meet our rigorous safety and quality standards.”

“At Nordic Naturals, we always take the time to do what's right for the health of our customers and their pets,” Bodkin said. “As we monitor category demands within the pet industry, we remain focused on delivering the most effective, highest quality products for pet health instead of simply following the latest craze.”

They’re part of the family.

The finest omega-3 fish oil for pet health.

Nordic Naturals makes the highest-quality fish oils on the planet to help support optimal health for dogs and cats. Beloved pets are part of the family, just like our Nordic Pet collection is an important part of our complete family of pure, fresh, and great-tasting omega-3 products. Give your customers and their cherished pets the finest omega-3 oils with Nordic Pet products.

2021 CATEGORY CATALYSTS

Oral Care: Pet King Brands

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et King Brands ventured into the oral care category 20 years ago with its Oratene Brushless Oral Care line, and it’s no coincidence the company has not deviated from its original formula. In these last two decades, the formulations have made their way into veterinary clinics and become a reliable and proven way to protect pets’ teeth and gums while meeting the needs of pet parents for ease-of-application so they can develop and stick to a regular dental health routine.

“The trust we have established began with veterinarians who have recommended and used our products at their clinics in conjunction with a dental prophy,” said Debra Decker, Director of Marketing. “Our Oratene Oral Gel has gained a great deal of popularity as a key solution used for pet dental cleaning process as an effective chlorhexidine antiseptic replacement while our other products are recommended for daily maintenance. The veterinary community recommends our products for their brushless ease-of-use for at-home care. Veterinarians know that more of their clients will continue a dental care program if it’s easy and does not stress out their dog or cat.”

Pet King Brands

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Veterinarians—as well as retailers who are on the ground interacting with pet owners—are primary messengers in advocating for proper oral care. “It’s important to remember that good oral care is as important as diet and food selections and should be discussed at every interaction with a pet parent,” said Decker. “There are several oral care products on the market and the options can be overwhelming. We’ve found that the retailers experiencing the heathiest sales in the oral care category have associates with good product knowledge.”

The company is helping to support those retailers in this climate of unpredictable supply issues by not only

Jerky Treats: Hillside Farms

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illside Farms entered this year ready for a fresh start while simultaneously staying true to and not veering away from the company’s values and vision. This year, Hillside Farms has focused on continuing to try to understand pet parents and their priorities when it comes to the treats they feed their dogs. The company has planned to continue offering pets treats that are limited ingredient, meat-based and a treat that combines flavors with health benefits.

“Since we dehydrate all of our own dog treats in our Southern California facility, safety is at the forefront,” said Scott Wu VP for Hillside Farms. “Since the middle of last year, we have had to update policies and procedures to ensure safety for our employees. Along with always wearing a mask, we have also reduced the work staff to ensure

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there is enough space to be safe. Despite losing efficiencies, we understand that our employees' safety comes first.”

“At Hillside Farms, we have identified that pet parents that purchase training treats sometimes buy these treats not only for training but also for toppers and more frequent rewards,” Wu said.

“That said, in 2020, we launched our Farmland Traditions Tiny Loves dog treats which are all natural, limited in-

ensuring there are no disruptions in its supply chain but to provide effective tools to educate pet owners about dental health. “In fact, we have increased production to keep pace with increased sales and while doing so, refused to compromise the quality of our ingredients for profits,” said Decker. “In addition, while other manufacturers were reducing their marketing spends, Pet King Brands has ramped up our brand presence and expanded our marketing focus to include a library of assets to assist our retail partners with product knowledge and how to recommend what product a pet parent should use.”

Pet King Brands’ enzyme-based, nondrug wellness products also include its ZYMOX line for ears and skin care. Both product lines are meeting the growing needs of pet parents to better care for their companions in today’s modern world. “The demands from the pet owners are not new demands but ones that are gaining great momentum, fueled in part by the humanization of our pets, the elevated role our pets serve and the increased awareness of the companionship they have provided us through very isolating times of the Covid pandemic,” Decker said.

gredient with 95 percent meat or poultry in each bite. The best way to educate pet parents is with your packaging but doing so in a crafty manner where the message is not lost. Along with informative packaging, our sales team are always trying to be in store and educating the staff so they can pass the message along to pet parents.”

“Retailers should understand that pet parents that buy training treats may not only buy for training purposes but also as a topper in dog food and sometimes just want to reward their dogs more frequently without exceeding the feeding recommendations,” Wu said. “With the ‘new normal,’ pet parents have much more time with their furry friends since most folks are at home. That said, pet parents like to appease their pets and providing more training treats throughout the day is a great way to do so.”

2021 CATEGORY CATALYSTS

Grooming Tools: Andis

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s a leader in the grooming tools category, Andis is about much more than hardware. The company that makes products for both animals and their human counterparts continues to cultivate a loyal following of styling professionals, pet owners and everyone in between under its #AndisNation umbrella that celebrates the creativity of the collective community.

This past summer, Andis announced a re-branding intended to achieve that.

"Andis has always been a passionate advocate for the creatives and visionaries in the world, as well as those solving practical challenges with our tools at home. Now, with our elevated brand experience and striking new look, we are focusing on what matters most to our company—our community of creators," said Co-CEO Matt Andis.

Improving the technology and convenience behind the hardware is important too. “Andis is continuing to innovate in the grooming industry,” Michelle Eskowski, Product Marketing Manager said this past summer. “Our new Vida

Cordless Clipper, released in April 2021, has provided groomers with a smaller option of cordless clipper designed to make grooming tough to reach areas easier and reduce fatigue during long grooming sessions with a lighter weight tool. Continuing to innovate and drive the grooming industry forward with high-quality tools like the Vida has always been our priority. We are excited to show off the new tools we have developed to meet the needs of professionals.”

ID Tags: ZuluTails

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et owners are traveling again and the need for dogs to have proper identification is going through a newfound appreciation and understanding of its value. Holidays such as the Fourth of July and Halloween also present ample opportunities for pets to go missing when they’re feeling afraid and threatened. Pets that can be identified are more likely to be reunited with their families. Companies like ZuluTails are making sure that not only is a plan in place, but so is a backup plan to ensure pets have at least one party aware they are missing.

“Our customer base has always been really great about offering up new ideas, and recently we’ve gotten thousands of requests to add a secondary contact for our customers who are starting to travel again post pandemic—especially from those who are doing international travel,” said Nicole Wrubel, Chief Marketing Officer for ZuluTails. “That’s why we’ve recently added a secondary contact feature that makes sure that both primary and secondary contacts receive

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an e-mail and SMS notification if their pet is found.”

The feature serves as a stepping stone for pet owners who may be bringing home a pet from a shelter for the first time. “Similarly, we’ve started working closely with local shelters and they love the idea of being listed as the secondary contact for any animal that is adopted through their organization,” Wrubel said. “Many are even requesting that new adoptive parents sign up for a

While the interruptions that began almost two years ago still plague the industry at large, Eskowski said the company has been diligent in addressing the needs of consumers and quickly providing solutions to problems when they arise. “Andis proceeded full speed ahead last year, launching the Pulse ZR II Flora clipper along with a set of clipper grips for groomers worldwide,” she said. “Andis also launched a virtual education program, offering small, interactive webinar classes taught by Andis’ internationally recognized education team. From getting more one-on-one attention in small classes to covering topics in detail with sessions that run from 1.5 to four hours, professionals have the opportunity to dive deeper than ever before. Courses are designed to be hands-on, with model dogs and suggested tools recommended to attendees before each session to enable active participation. While we had always planned to continue expanding into the virtual space, the pandemic accelerated that trend, and we aren't looking back!”

$19.99 annual ZuluTails membership as a required part of the point of adoption process—and that the shelter be added as the secondary contact. This provides an extra layer of support and peace of mind and complements many of the more traditional tracking devices that might already be utilized by the shelter.”

However pet owners won’t be able to find ZuluTails at traditional retailers.

“ZuluTails is direct to consumer through an annual membership via the ZuluTails.com website, which is where pet parents can find information about why ZuluTails is the smarter solution to connecting pets and their families,” Wrubel said. “ZuluTails is disrupting the pet ID category. A quick scan of a pet’s unique ZuluTails QR code connects instantly to the pet’s personal profile and sends an alert to the pet’s owner in seconds.

When pet owners experience the magic of ZuluTails for the first time, there’s always a thrilling ‘ah-ha’ moment of clarity. The ability to instantly connect with your pet through a simple-to-use interface is undeniably empowering.”

2021 CATEGORY CATALYSTS

LID Premium Foods: Evanger's

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ialogue with retailers, plus reading company websites and labels have helped keep pet owners informed about what they’re feeding their pets. Despite those best efforts, there remains gray areas within the LID Premium Foods category in particular that companies are taking responsibility for shedding light on. Category leaders like Evanger’s Dog and Cat Food Company are committed to transparency and education and don’t take this responsibility lightly.

“First of all there are plenty of misconceptions,” said Holly Sher of Evanger’s Dog and Cat Food Company. “So what we do is actually we have brochures, calendars and single sheets that we pass out to the stores all the time through our reps or if they wanted to e-mail that have a problem / solution, we have a problem / solution guide. We put it in our brochures, we put it in our calendar, we put it in our e-blasts and when we go into the stores and educate them, we talk about all the time what’s going on."

Too often, getting consumers back on

track and intent on feeding their pets a higher caliber diet happens after tragedy strikes or when something as simple as switching their foods is too little, too late. “When a dog gets sick, that’s when they find us,” Sher said. “My dog has cancer, then they start giving it organic like they’re going to save its life. Or my dog stops eating or my dog won’t eat dry food. That’s how they find us. Usually when there’s a problem, that’s how they find us. Pet owners really need to

Seasonal Toys: ZippyPaws

S

easonal toys provide a great way to prompt category exploration. A seasonal-themed toy can influence a pet owner to add one to their cart and launch a relationship between a loyal consumer and retailer. Simply because a toy is seasonal, suppliers like ZippyPaws take the same care and ensure high caliber quality as the other types of toys in its product portfolio. Although the company started with plush toys, ZippyPaws looks forward to preparing for the coming year and continuing to expand into and serve pet owners across several categories.

“Holiday products are huge for us here at ZippyPaws, and we always strive to make sure we can exceed expectations,” said Leah Angelos ZippyPaws Sales Manager. “Due to the craziness of the year with stock issues and shipping delays across the industry, we knew it was important to make sure that we had plenty of holiday products available.”

ZippyPaws and its retail partners are intent on demystifying common misper-

PG 30 / PET I N S I G H T

ceptions circling the seasonal toys category. “Although seasonal products may seem like they're ‘unimportant’ amidst the spirit of giving, that doesn't mean seasonal products shouldn't have beneficial features and be created with high quality materials,” she said. “Seasonal products should be held to the same high standards and are also a great way to introduce our pets to products that they may not have tried before.”

“ZippyPaws always makes sure our

start healthy diets early on.”

To continue supporting retail partners and keeping up with demand from consumers, Sher says labor shortages are a hurdle they are addressing. “We’ve come out and people are looking for problems and solutions and that’s what we’re really concentrating on now," she said. "And to keep up with the momentum that’s happening. It’s amazing how the canned category is becoming so powerful in our industry. It’s all about what works. We’re seeing the price increases. We’re working diligently trying to keep our prices affordable and where everybody is happy is very difficult to do where you don’t have control.

There’s been a lot more challenges this year than ever before. I do notice that people want wet food, they want what’s best for their pet once they’re educated, and they want made in the US. We’re a global society but they want what’s made in the US. We have to support made in the US and we need to support one another."

seasonal toys are kept to the same high standard as our other products, with thoughtful construction and key features to cater to various dogs' preferences,” she said. “This is one of the many reasons our seasonal products lead this category.”

As 2021 winds down, ZippyPaws is ramping up efforts to continue injecting creativity and innovation within the categories the company competes in.

“ZippyPaws started in 2011 with plush, but we have exponentially grown and established our place within other pet product categories as well,” Angelos said. “We look forward to continuing to create new and innovative designs and ensure all pets have access to high quality and lovable products.”

“ZippyPaws remains committed to providing high quality and fun toys while making sure our partners have everything they need to succeed,” she said last month. “Adaptability is key as we round out 2021, so we’ll continue to put our best paw forward!"

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2021 CATEGORY CATALYSTS

Probiotic Grooming Solutions: Skout's Honor

W

ithin the probiotics space, Skout’s Honor pointed out many companies have jumped on the bandwagon and are competing in a category under false pretenses. Company leaders are quick to remind pet owners to discern which companies are legitimate and which are misleading pet owners and don’t have the attributes they claim to.

“We have always found that the best approach is to be honest, transparent and take the time to address questions around our topical probiotic technology and its many attributes,” said Pete Stirling, CEO at Skout's Honor. “Unfortunately, there are a lot of products out there trying to capitalize on the marketing value associated with topical probiotics that do not qualify for the designation, either because they do not actually contain live, colony-forming probiotics, or they do not provide a specific benefit to the animal using it. In our case, topical probiotics are not just a marketing ‘buzz’ phrase. They are an honest opportunity to help improve the life of both pet and pet parent. We've even taken lengths to solidify our patent-pending status on topical probiotics for the

pet industry because it is such a specific and unique solution. That simple fact makes talking about our technology fun, and when you’re obviously excited about how well something works, people are willing to listen.”

Skout’s Honor has maintained its leadership role through relying on science and fact-based data rather than flowery words and too-good-to-be-true product claims and promises to pet owners. “We created the category of topical probiotic skin care (grooming and wellness) products for pets and continue to lead the way in their devel-

opment and our understanding of the role this technology can play in a pet’s long-term wellness plan,” Stirling said.

“Most recently, we have completed the process of scientifically proving three critical factors necessary to claim a true topical probiotic product: that our probiotics remain viable in a traditionally preserved environment; that our probiotics survive the application process and that our probiotics provide a specific benefit to the host—in our case, helping to strengthen the skin’s natural barrier that can protect against and prevent the animal from developing skin conditions in the first place.”

Skout’s Honor is continuing to educate about the consequences of over-prescribing antibiotics and watching the pattern of pet owners’ healthy habits spilling over into the pet industry, namely taking greater care and interest in what they’re putting into their bodies, unfold. “Topical probiotics are a huge trend in wellness and personal care, for both humans and now pets, posed to grow at a much faster rate than grooming and wellness categories alone,” Stirling said.

ingredient, crispy and crunchy. Our Chicken Crisps are single ingredient chicken thigh, low calorie, crispy and crunchy. These are made in small batches by hand with cage-free chickens that are raised on family farms. The rest of our Crisps line will focus on the same quality and fun!”

The chicken treats category presents versatile opportunities for suppliers to innovate and entice pets, attributes

which Green Coast Pet would like for consumers to realize. “There’s still fun and unique things that can be done with chicken,” Bateman said. “By keeping healthy as the No. 1 focus and keeping them single ingredient but not just offering another jerky, you can make chicken treats a lot more fun. We decided to make ours like chips to share in that human experience people loved from things like our Pawnut Butter.”

Green Coast Pet began in the CBD category and has expanded to serve pets in several categories. To measure that growth, the company is applying what has worked in the past and listening to trusted advice. “Being new to the chicken treat side of things, we are applying many of the things we have done on the CBD side of our business to drive this growth,” he said. “We are being thoughtful and asking our customers what they want to see. We take their advice to heart and work on coming out with the best products people are looking for.”

Chicken Crisp Treats: Green Coast Pet

G

reen Coast Pet forged a path in one category and has carried over its commitment to quality and pet safety into the chicken crisp treats category.

One way the manufacturer has revitalized the category is through reminding the industry of this protein's versatility and putting its personalized twist on a tried and true ingredient through refreshed flavors, textures and format.

Green Coast Pet has had a lot to look forward to particularly during the second half of 2021. “With the launch of our brand new Chicken Crisps, we have begun to produce more single ingredient treats in this new ‘Crisps’ line,” Mike Bateman Green Coast President, COO & Co-Founder previously told Pet Insight.

In addition to launching a Beef Liver and Pork Crisps this summer, “We are continuing to explore the creation of more and more products in this single ingredient line as well,” Bateman said.

“This is going to be an amazing line of fun and unique treats that are only one

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2021 CATEGORY CATALYSTS

Functional Treats: Pet Naturals

T

reats have evolved to be not only nutritious morsels for pets but something equipped to make the pet healthier overall. Suppliers in the functional treats space are responding with new products that address specific health conditions. Companies like Pet Naturals, which equips pet owners with treats and supplements through two unique brands, have noticed how the line separating treats and supplements has been softening for quite some time—to the benefit of pets. The industry knows that education is key to drive category growth and promote category exploration. However, suppliers are making the learning process better. They are incentivizing with engaging and interactive methods of learning and teaching that retailers will want to participate in.

In the past year Pet Naturals has paid attention to consumers’ demands and market demands and has shifted to continuously meet those needs. “We are really seeing the demand from pet parents for treats that aren’t just healthy, but help to make their pet healthier,” said Derek Archambault, Marketing Manager for FoodScience Corp’s Pet

Naturals. “For example, our Heartibles line of treats feature taurine and omega fatty acids for supporting heart health.”

Pet Naturals, along with its retail partners, is dedicated to addressing and clearing up misconceptions or misunderstandings about the functional treats category. “Pet Naturals has a learning portal where retailers can sign up for fun, interactive educational modules that helps retailers educate themselves and their staff on our products, ingredients and the benefits of our products,” he said.

"We have our origins in supple-

ments made in tasty treat-like forms, and the line between supplements and functional treats has been blurring for years,” he said. “We are known for high quality products that work, and we bring that nutritional and ingredient knowledge to the treat aisle.”

Rounding out 2021, Pet Naturals has identified functional treats trends and areas of focus to drive growth. “Pet Naturals continues to focus on supporting our retailers with education programs for their staff and marketing programs to drive awareness and traffic to their store,” he said.

Further, one of the company’s priorities is, “We want to make sure as many of our retail partners as possible are aware of our education portal, which provides free education to retail associates with cash incentives for taking modules,” he said. “Pet Naturals is also rolling out a re-brand that will start in the fourth quarter and continue to work its way on-shelf through Q1 of 2022. We are excited about our new look which is a better fit for our line of healthy and functional treats.”

Made in the US Dog Toys: SodaPup

C

ompanies like SodaPup are leading the Made in the US segment by proving it brings dependable and safe products to the table. SodaPup has held its own within the segment through its unwavering transparency with pet owners and its retail partners and communicating with pet owners through a variety of social media channels.

There are a few things SodaPup would like for consumers to grasp about its company and the Made in the US category. “Consumers should know that SodaPup is a veteran owned business that is committed to 100 percent American manufacturing,” said SodaPup's Adam Baker. “We are guided by a few basic principles which includes making the most fun, innovative and durable dog toys on the market, using only FDA compliant materials that are safe for dogs, treating our customers, vendors and other stakeholders with respect, and giving back to the communities we serve. We view business as a force for

PG 34 / PET I N S I G H T

good in our society.”

“Most importantly, consumers should know that USA manufacturing is possible for companies that are committed to it and the benefits are far reaching in terms of social, economic, and geopolitical impacts,” Baker added. “I believe that consumers, especially younger consumers, are wising up to the fact that manufacturing overseas has many hidden costs and they are no longer willing

to turn a blind eye to those hidden costs in order to buy things for cheap.”

SodaPup has been experimenting with newer forms of outreach to inform and interact and communicate with pet parents. “We have found Instagram to have an outsized impact over the last year in terms of raising brand awareness for SodaPup,” Baker said. “People are working from home with their dogs and spending more time on their devices. Our Instagram following continues to grow by leaps and bounds and it is a way to introduce ourselves both to consumers as well as to potential retail customers around the globe. We primarily repost user-generated content as a way to celebrate those who use our products and also as a way to authenticate our brand. Instagram is a platform where we can cultivate relationships with customers and 'dog people.' We have learned so much from being a part of the conversation and listening to feedback."

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2021 CATEGORY CATALYSTS

Puppy Focused Shampoos & Conditioners: Best Shot Pet

P

roducts designed for puppies are linked to discerning and cautious pet owners. Manufacturers like Best Shot Pet Products are there to educate and influence pet owners to make decisions on behalf of their pets they are comfortable with and are in the puppy's best interest.

“Savvy retailers specifically target puppy products, particularly to firsttime puppy parents, because they understand how this critical category creates new lifetime customer opportunities from early puppy development on through the dog's various life stages,” said David Campanella of Best Shot Pet Products. “It all starts with puppies!

Grooming is a big deal in our industry and plays an intricate role in building the foundation on which to cultivate future dog product sales throughout each dog’s life. Full service salons and selfwash stations have become standard business staples for achieving profitability, building loyalty, and for further growing revenue.”

“This in part is due to the 'humaniza-

tion' of pets,” Campanella added. “For example health minded Millennials who typically wait longer to have children, are eager to project their human needs onto their new 'fur babies.' Puppy shampoo and conditioner purchasing criteria today are no different than the pet parent’s criteria: is it safe; is it gentle or hypoallergenic; is it soap-free; would I use it and what is the price?”

“Humanizing pet products is resoundingly evident in pet food branding, and as a result other categories have fol-

lowed suit,” Campanella said. “However the natural, organic, nutritious, safe, and healthy attributes consumers seek in their puppy’s food unfortunately do not exactly cross over to pet shampoo and conditioner due to their vast differences in chemistry.”

“Pet food is ingested, metabolized, and essential for a dog to live. On the other hand, pet shampoo and conditioners are merely rinse off topical products for cleaning and coat maintenance,” he continued. “Granted hygiene does contribute to a puppy’s overall health, but portraying pet grooming liquids in the same manner as food is fundamentally wrong and misleading by any account.

Yet it happens shamelessly every day in our industry. Marketing puppy shampoo, or any other shampoo category, is not a matter of telling pet parents what you think they want to hear, rather it's telling them what they actually need to know. It’s impossible to be all things to every customer. It helps to take a stance you can sustain. Honesty is always the best policy.”

and vegetable to all diets and blends.”

“We at Volkman Pet Products take pride in offering high quality specie specific diets and blends,” Tomlinson said.

“As a result of spending more time at home the hobby of both Wild Bird feeding and indoor companion birds has spiked. Wild Bird hobbyists can turn to our menu of offerings to fit any budget and quality of seed desired. We strive to offer a good, better and best solution to your feeding needs. Natural and or

Organic offerings have been of greater demand as educated consumers are looking for the best method to provide a natural and nutritional feeding experience. Companion bird parents can enjoy our extensive line of blends in both our Avian Science and Featherglow line.

As always we recommend a supplement of fresh fruit, vegetables and water.”

“Due to consumer demand, we have added an Avian Organic line: 4 SKUs to include Canary/ Finch, Large Hookbill and two small hookbill offerings with or without sunflower,” she added. “We are also working on an all natural line to be launched in early 2022. In addition and based on retailer request we have created and launched a line extension of Featherglow. Featherglow Fancy’s are designed as a treat and a supplement to your Avian treating and behavior training. Featherglow Fancy’s are offered in 12 different treats to include Sun Cured Cranberries, White Pumpkin Seed, Carrot Dices, Almonds, Cheery Peppers, Rainbow Papaya and more.”

Avian Food: Volkman

C

ategory leader, Volkman Pet Products is committed to brick-and-mortar, neighborhood stores. The company has become a leader within the avian food category and has several brands under its umbrella. According to Digital Media Developer, Katie Tomlinson, although the company has faced challenges this year, they have been working on several new developments and have a bright future ahead.

“Since 1863 Volkman Pet Products / Seed Factory has earned a reputation for high quality seeds and feed,” Tomlinson said. “As a third generation family owned business we formulate, manufacture and distribute pigeon, wild bird, small animal, backyard chicken and companion bird diets and blends. Avian Science is our legacy brand combining 150 years of seed experience with todays nutritional needs. Featherglow is our Vitamized blend line that ensures health for your companion bird. We always encourage the introduction of fresh fruit

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INDUSTRY CALENDAR Upcoming Pet Industry Events

1. PLMA Show

Jan. 30 - Feb. 1, 2022 Rosemont Convention Center Chicago, IL www.plma.com

2. The Inspired Home Show

March 5-8, 2022 McCormick Place Chicago, IL www.theinspiredhomeshow.com

3. Atlanta Pet Fair & Conference

March 10-13, 2022 Georgia International Convention Center College Park, GA www.atlantapetfair.org

4. Global Pet Expo

March 23-25, 2022 Orange County Convention Center Orlando, FL www.globalpetexpo.org

5. Natural Products Expo West 7

1 2

6 5

3

March 8-12, 2022 Anaheim Convention Center Anaheim, CA www.expowest.com

6. SuperZoo 4

Aug. 23 - 25, 2022 Mandalay Bay Las Vegas, NV www.superzoo.org

7. Natural Products Expo East Sept. 28 - Oct. 1, 2022 Pennsylvania Convention Center Philadelphia, PA www.expoeast.com

P.O Box 2067 • Issaquah, WA 98027 • 425-497-0950 Vol. 10, No. 11 Publisher/Editorial Director Davis Johnson

djohnson@executiveinsightproperties.com

PG 3 8 / PET I N S I G H T

Editor Katie Murdoch

kmurdoch@executiveinsightproperties.com

Circulation Director James Anderson

janderson@executiveinsightproperties.com

INTERVIEW

Al Puntillo, Chief Merchandising Officer, Mud Bay

Professional History Tell us how your career path led you to the pet industry. How did you decide to join Mud Bay?

Animals and pets have always been a big part of my life. Growing up I was a 4-H kid who spent my summers showing horses and beef cattle, and the rest of the year caring for them and all the other pets on my parent’s small hobby farm just outside of Portland, OR. I chose to pursue a degree in Animal Science from Washington State University, which really helped me develop a strong understanding of animal nutrition and livestock production. After college, I worked for about a year as a veterinary technician where I gained an entirely new appreciation for the work that vets and vet techs do each day. I knew that I wanted to keep growing my career in the pet industry, but I wasn’t sure how to best use my degree and experience.

At the urging of my father-in-law, I took a job in outside sales for a giftware company. He convinced me that the sales and marketing experience that I would gain as an outside sales rep would be invaluable. He couldn’t have been more right. I loved calling on independent business owners and helping them grow their businesses and was quickly promoted into a sales management role. While I was enjoying all that I was learning in outside sales, I knew that long term I wanted to be working back in the pet industry. After a few months of looking, I was lucky enough to land PG 40 / PET I N S I G H T

a job as an outside sales rep at Animal Supply Company where my pet industry education really kicked into high gear.

As a distributor rep I helped grow hundreds of brands and learn exactly what retailers needed from their manufacturing and distribution partners. Working closely with so many pet food manufacturers made me curious about the focused role of being a manufacturer’s sales rep and after four years at Animal Supply Company, I took a position with Nutro Pet Foods. After selling hundreds of product lines as a distributor rep, I really enjoyed the focus of being an expert on just one brand, and at the time Nutro was highly focused on building strong relationships with retailers and growing sales through great community outreach with shelters, breeders and veterinarians. In 2005, Animal Supply Company doubled in size overnight with the acquisition of Western Farm Center in Northern California, and I was offered a job to return to Animal Supply Company as Director of Sales. Returning to Animal Supply Company to lead the company’s sales team was a huge honor for me and yet another tremendous learning opportunity. From 2005 to 2013 the Animal Supply Company sales team and I focused on supporting independent retailers as business consultants and partners in their success. Through my roles with both Animal Supply Company and Nutro, I had the opportunity to build relationships and partnerships with many retailers

on the West Coast , including Mud Bay. Mud Bay always set itself apart from other retailers in its truly vested and sustainable approach to long term partnerships. When they asked me to join them as VP of Merchandising, I couldn’t pass up the opportunity to be a part of such an amazing family and employee-owned company.

What do you enjoy the most about working in the pet industry?

Without a doubt it is the people. The pet industry attracts great people while also bringing out the best in people.

Every day I get to be a part of an industry supported by pet parents who care deeply about their pets, business owners whose missions are all about making lives of pets and people better and passionate Muddies (our nick name for Mud Bay staff members) who really care about the work they do and the company we are building.

What valuable lessons and experiences have you learned during your career working in pet?

Some of these may be cliches, but it has taken me a long time to truly internalize them and understand just how important they are: 1) Culture trumps everything 2) People may forget what you said, but they will never forget the way you made them feel r Cont'd on Pg. 42

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Interview: Al Puntillo, Mud Bay

r From Pg. 40 3) Measure what matters and make data-driven decisions 4) What gets focus, gets results

What trait(s) in yourself do you attribute most to your success?

I am a builder and salesperson by nature. I enjoy the planning, designing, building or re-building of things almost as much as I enjoy helping others see the future potential in what we are building.

Who do you consider to be your biggest advocate or advisor and why?

Without a doubt my biggest advocate is my partner and spouse, Carrie. She is always there balancing love and inspiration with straight-forward, unfiltered truth.

How would you describe your leadership style? How have your previous leaders and experiences influenced that style?

I believe in giving people and teams

PG 42 / PET I N S I G H T

what they need to do a great job and getting out of their way. For some teams that may be as simple as giving them a clear objective and the resources to make it happen. Others may need additional help to build or execute their plan. Great leaders are constantly on the lookout for what their people and teams need to keep them moving forward.

Pet Industry What creates the differentiation that allows the pet industry to chug forward through all weather?

Why has this industry fared better during disruptive times compared to other industries?

it can be summed up by saying now more than ever: pets are family members. We want for our pets what we want for ourselves and our children. As long as the pet industry continues to innovate its goods and services to keep up with the desire to treat pets as family members, the pet industry will continue to outperform other industries in year-over-year compounded growth.

What are you most proud of when you look back at Mud Bay’s response to the pet industry climate during the last 20 months?

It has been a very difficult 20 months, and there are a lot of things that Mud Bay has done during that time that I am proud of. During the early days of the pandemic, it made me incredibly proud to see just how quickly we were able to adapt to take care of employees and customers. Within just a few weeks we implemented Covid safety protocols and signage in stores that had county and state health officials using Mud Bay as an example for other business. We went from having no e-commerce platform, to having are entire assortment available for curbside pickup in less than a month, and we created the Muddy Support Team to support customers via phone and chat.

How has e-commerce impacted the pet industry within the last five years? How do pet owners benefit from having both online and brick and mortar retailers? r Cont'd on Pg. 44

Interview: Al Puntillo, Mud Bay

r From Pg. 42 Online sales of pet food and supplies totaled more than $20 billion in 2020.

That is 30 percent of all the pet food and supplies sold in the US. Amazon and Chewy were poised to take advantage of the pandemic , and in doing so they have made easy delivery and auto reorder must-have items for every pet retailer.

The good news is that in the last five years, e-commerce systems catering to small and medium sized pet retailers have made getting online much easier.

Customers want both. They want the expertise, relationship and convenience that comes from their local pet retailer when they want it, and they want the convenience of delivery and auto reorder when they want it. Independent retailers have the ability to offer it all, but they need to get it up and in place ASAP.

What are the top 2-3 issues pet specialty retailers are currently facing?

It seems like for years we have all been answering this question with responses about competition, pricing PG 44 / PET I N S I G H T

pressure, etc. But right now, supply chain shortages and staffing are the two issues that I hear the most concern about. The independent pet channel is experiencing tremendous growth right now, and we need manufacturers and distributors to invest heavily to ensure that their supply of product keeps up.

Mud Bay In your opinion, what business practices have ensured Mud Bay’s success in the business?

What has made Mud Bay successful over time is more than just specific business practices. Mud Bay has definitely benefited from building an employee ownership culture, open book management and its long-term partnerships with manufacturers and distributors.

But what has made the real difference is Mud Bay’s willingness to constantly work to reinvent itself, always having one foot in the present and one foot in the future.

What makes Mud Bay an industry leader?

Mud Bay’s values are simply a reflection of the values of two truly amazing human beings, Marisa Wulff and Lars Wulff, Mud Bay’s Co-CEOs. Throughout the past 30 years, they have worked tirelessly to make sure that our values show up every day in the work we do.

Our core values are: • Accountability. We follow through.

• Education. We empower with knowledge.

• Integrity. We do the right thing.

• Generosity. We help others succeed.

• Responsibility. We use our best judgment.

• Fun. We create workplaces that are filled with laughter.

How would you characterize your manufacturer and distributor partnerships, and how could they be further improved?

When we refer to the manufacturers and distributors we work with as partners we really mean it. We depend on our manufacturers to provide us with great products, continuous innovation r Cont'd on Pg. 46

Interview: Al Puntillo, Mud Bay

r From Pg. 44 and accurate information that we can use to educate Muddies and customers.

Mud Bay goes to market differently than other retailers. We don’t do promotions, in-store signage, or shippers and our product selection process can be slow and time consuming. But, once our partners get used to our idiosyncrasies they come to find that we are fair, easy to work with, and that our methods keep sales consistently growing.

You’ve worked in each sector of the industry—on the manufacturing side for Nutro, on the distribution side for Animal Supply and now currently in retail. How does your professional experience allow you to be a stronger partner for Mud Bay’s manufacturer and distributor partners?

The pet industry is still, at its core, a relationship business. Mud Bay is always looking for the best possible products, but we are also looking for the best possible partners: people and companies that we enjoy working with and who are also looking to build long-term, PG 46 / PET I N S I G H T

mutually beneficial partnerships. Having worked in all three sectors it makes it easier for me to identify with the needs of our partners and help translate that to other teams at Mud Bay.

During your career working at Mud Bay, what accomplishments are you the most proud of?

Muddies have accomplished so many amazing things in the last eight years that it is very hard to pick just a few. But I am particularly proud of all the work that has gone into Mud Bay’s pet food certification process, Mud Bay Certified.

For more than 30 years we have been touring production facilities and requiring the highest level of transparency from our manufacturing partners. Mud Bay Certified has pulled that entire process together into an annualized certification process and into customer-facing information that our customers can use and have confidence in. I am also very proud of Mud Bay’s participation as one of the founding members of IndiePet, a non-profit trade association created to support independent and neighborhood pet retailers, which launched in November of 2020.

All photos courtesy of Mud Bay

What are your top 2-3 priorities as we round out 2021?

Keeping stores full of product though the holidays is definitely a high priority for everyone at Mud Bay. We are also working hard to finalize our plan for what we believe is going to be an amazing 2022.

What can we expect from Mud Bay in the near future?

So many Muddies have been working their tails off over the last two years to make our 2022 initiatives possible. Just a few of the exciting initiatives that will be completed in 2022: • The return of Mudstock (our all-employee day of learning/partner fair); • Free local Mud Bay delivery in all communities that we service; • The opening of our second and third Mud Room locations (Mud Bay’s lifestyle specific grooming); and • Expansion of our Green Pet service, pet waste pickup and composting.

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www.jiminys.com sales@jiminys.com

SAVE THE DATE It’s been a wonderfully productive few days! We hope you’re enjoying reconnecting with your community of pet pros face-to-face, hearing business-boosting advice from industry leaders and of course, seeing (and touching) all of the latest and greatest pet products up close. Now, instead of “goodbye” on Thursday, let’s say, “catch you later” and start counting down the days until we meet again. Same place, new year.

AUGUST 23 - 25, 2022 EDUCATION: AUGUST 22 - 25, 2022 MANDALAY BAY | LAS VEGAS, NV

MARK YOUR CALENDAR

FOR THE NEXT SUPERZOO, AUGUST 22-25, 2022!