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
PG 18 / PET I N S I G H T
