January 2024 Pet Insight

Pet Insight January 2024

A FRESH LOOK AT CATEGORY INNOVATIONS AND THE EVOLVING CONSUMER DEMANDS IN THE INDUSTRY Inside • Special Report: Pet Supermarket 4 • Special Report: Farm and Fleet Channel 6 • Market Focus: Los Angeles 12 • First Take: Body Part Chews 24 • First Take: Grain Inclusive Premium Foods 26 • First Take: ID Tags 36 • First Take: Milk Substitutes 48 • Q&A Interview: Ricardo Azevedo, CEO, Woof Gang Bakery & Grooming 60

Special Report Pet Supermarket

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ore than two years after resuming its operations as a fully independent banner, Pet Supermarket closed out 2023 with upwards of 226 store locations, making it the seventh largest pet retailer in North America. In addition to store openings, the last year was dedicated to forging and fortifying partnerships in both business infrastructure and with sought-after manufacturers, conveying to the greater industry that Pet Supermarket is investing in its future as a strong and reliable resource for pets and pet owners. The retailer has also welcomed a new CEO as it continues to carve its own path in the pet retail world.

Leadership History:

In November, Pet Supermarket announced it had welcomed Rich Tannenbaum as its newest Chief Executive Officer.

Tannenbaum has more than two decades of experience in retail, e-commerce and the consumer goods industry. He most recently led Five Below’s global supply chain and operations teams, in which he helped spearhead the retailer’s multinational logistics expansion. Tannenbaum also held leadership roles with The Vitamin Shoppe and PetSmart.

Tannenbaum succeeds Allen McClard, who assumed the CEO role right after Pet Supermarket’s separation from and the dissolution of Pet Retail Brands in 2021. McClard led a swift summer branding campaign to reintroduce the newly independent retailer to consumers, informing pet owners that Pet Supermarket “Speaks Pet” through making diligent choices in its inventory selection, and its “We’re By Your Side” marketing spots enforced that the retailer was a reliable partner in the raising of happy and healthy pets.

Pet Supermarket had operated under the Pet Retail Brands banner from 2016 to 2021 after it was acquired by Roark Capital and operations were merged with Pet Valu. Prior to that, the company was led by Diane Holtz, who after 23

years with Pet Supermarket, announced her retirement during the merger with Pet Valu.

Pet Supermarket was founded in 1973 by Charles West Jr., and was originally operated as Pet Circus until 1986 when the name changed to Pet Supermarket. At the time of the merger with Pet Valu, there were 165 Pet Supermarket locations employing about 2,250 associates.

Company Profile:

Pet Supermarket stores feature self-service dog washing stations, grooming and adoption services along with VIP Petcare assistance. Pet Supermarket stocks more than 8,000 high-quality products and supplies such as premium pet food, toys, health and wellness items for a wide variety of animals.

Pet Supermarket has a fully outfitted e-commerce platform to service pet owners with shipping incentives, auto ship options and order tracking. The retailer’s VIP Rewards program features benefits—some are applicable in-store only—including cash rewards for purchases and senior and military personnel savings.

The company stays connected to its local communities through efforts such as the long-time Pets in the Classroom Program, an educational grant program that helps teachers purchase and maintain small animals in the classroom to help students build self-esteem and learn responsibility. Through its Lend a Paw program, which was able to provide $712,473 to its nonprofit partners in 2023, Pet Supermarket has been able to continue carrying the mantle that began with its former Pet Valu partner of supporting the US War Dogs Association. The company raised $462,225 in 2023 for the organization supporting military working dogs and their handlers.

Pet Supermarket is also a long-time supporter of Southeastern Guide Dogs (SEGD), which provides state-of-the-art services at no cost to their clients in-

cluding individuals with vision loss, veterans and children throughout the US.

Strong Partnerships:

The remaining $250,248 that went to SEGD was made possible through a new partnership with Fromm Family Pet Food. The partnership was announced in September as the retailer began introducing Fromm’s range of premium products at store locations and online.

Fromm Family Pet Food is the official dog food of SEGD, and to commemorate the partnership, customers who donated $5 to Pet Supermarket’s annual donation drive for SEGD received a free bag of Fromm treats. And Pet Supermarket matched every donation amount made with a purchase of Fromm Family Pet Food products—with a final total of $10,060.

On the services side, Pet Supermarket announced a partnership with Spot Pet Insurance in June to both promote education on the importance of having a financial plan in regards to pet health and wellness and to provide options for pet owners. Pet Supermarket has also made Spot Pet Insurance available to its employees.

Meanwhile, the retailer has also been bolstering its operational infrastructure. In March, it announced it would be using Bringg on Salesforce (BoSF) to manage delivery operations, expand fulfillment capabilities and enhance customer experience. BoSF is the only delivery management platform that is entirely native to Salesforce, providing quick integration times to instantly meet vendor needs for better visibility into delivery processes and enabling a branded customer experience. BoSF allows Pet Supermarket to expand its carrier options beyond use of an internal fleet to significantly enlarge delivery capacity.

Leadership changes along with a focus on forging new and strengthening existing partnerships is ensuring that Pet Supermarket will remain a formidable presence as a pet retailer for years to come.

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PG 4 / PE T I N S I G H T

Special Report

Farm and Fleet Channel

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ompanies that operate in the farm and fleet channel service a wide range of household “do it yourself” needs. One segment of consumers they’ve all come to share is the pet owner. This is largely because in addition to needing pet food, supplies and accessories, pet-owning households also have animal-related maintenance needs, such as pet-safe cleaning products and home repair. The ubiquity of online shopping has evolved the consumer perception that it is easy to get everything you need at one website, such that operators in farm and fleet are taking that acceptance and expectation for convenience and running with it.

“Consumers can go into a local Do It Best store and pick up their pet supplies, as well as their repair items, tools and cleaning supplies,” Laci Scheib, Do It Best Merchandise Manager for farm and ranch, pet supplies, apparel and sporting goods, said last spring. “They aren’t going to be overwhelmed by the massive aisles of hundreds of brands of dog and cat products.”

The customer service mantra that so drives the independent pet specialty channel is also fundamental to farm and fleet, with education factoring in significantly to the customer experience.

“Customer service is foundational to today’s successful independent retailers,” said Scheib. “Consumers won’t have to wander down aisles trying to locate a team member to have their questions answered. The hardware and farm and fleet channels also offer the ability to customize assortments based on their service area. In a large horse community, these stores will have an extensive equine department with a variety of feed, tack and specialty products. If you have customers who have started raising backyard chickens, the hardware and farm and fleet channel can not only bring in a catered assortment of poultry products, but also help educate the community about raising and keeping healthy chickens—not to mention carrying the chicks themselves.”

The same is true with Fleet Farm.

“We are a one-stop-shop,” VP of Merchandise Mark Stelzl said previously.

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"Our customers are our friends and neighbors, and we are passionate about providing them with legendary service. That means answering their questions, providing expert advice and making them feel at home when they visit our stores. Our team members are incredible when it comes to delivering on that experience. Not only do we want our customers to count on us as a dependable supplier of the products and services they need to live ‘Life Out Here,’ we want them to love coming to our stores because they trust our team members and appreciate the service they receive.”

— Kyle Murphy, Vice President of Merchandising, Pet and Pet Services, Tractor Supply “Our stores have many dominant categories: sporting goods, farm supplier, hardware, automotive, household supplies, grocery, apparel, lawn and garden and holiday season. In all these categories we aggressively pursue broad assortments of branded and private label products. Since our products are similar to those found in specialty stores and big box stores, we shop the market to ensure we have the best retail prices across all channels. So, it’s selection and price that sets us apart in all phases of our business.”

For Tractor Supply (TSC), convenience is just one leg of the stool.

“Three words come to mind when

I think about Tractor Supply’s role in the channel: convenience, quality and quantity,” Kyle Murphy, Vice President of Merchandising, Pet and Pet Services said. “Tractor Supply has more than 2,100 stores serving rural communities across America, in addition to our online shopping capabilities at TractorSupply.com. We serve a lifestyle, and pets are an integral part of that.

Three out of four TSC customers own one pet, and 1 in 2 has more than one.

Our customers are also likely to own some land that needs caring for. This means that when a customer comes to TSC, they can pick up what they need for their pets and animals, get supplies to care for their yard, complete a DIY project and anything they need to live Life Out Here without making a trip to another store. That’s convenience. In terms of quality, we sell the top national brands and our own exclusive brands like 4Health, offering the best quality at an everyday low price. Lastly, many of our customers often have multiple pets across multiple species and need a lot of food. At Tractor Supply we offer larger bags at better values, conveniently cutting out the need for fill-in trips during the week or month.”

The pet owners who shop Tractor Supply typically own multiple pets, have more than one species and lean toward larger breeds, said Murphy.

“More generally, our customers tend to be hardworking, self-reliant, family-focused and resourceful, with a majority in the 35-64 age range. Petsense

by Tractor Supply customers tend to skew younger and more female. We are seeing the Petsense-only customer now shopping at Tractor Supply for lawn and garden supplies, clothing and other product categories that are complementary to their lifestyle, while the Tractor Supply customer is now visiting Petsense for natural foods and premium pet products, as well as grooming services. The synergy of the two brands allows us to capture more share of wallet with our customers and meet more of their needs for ‘Life Out Here.’” r Cont'd on Pg. 8

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Special Report: Farm and Fleet Channel

r From Pg. 6 Fleet Farm’s more than 40 Midwest stores can be found in rural, urban and in-between communities, all servicing customers looking for value.

“Our stores and product mix work well in both suburban and rural settings,” Stelzl said. “Our customers are hobby farmers, professional farmers, 'do-it-yourselfers,' people who love the outdoors and outdoor sports, contractors, homeowners and pet owners, just to name a few. Our extensive selection allows everyone to enjoy our one-stop shop-format.”

The company makes a point to tailor its product offerings to the specific needs of the local communities it serves, he said.

“For example, urban centers are unlikely to need the full assortment of farm supplies we carry in the more rural areas, so our product selection and inventory change a little to reflect the PG 8 / PE T I N S I G H T

location. At the same time, we work to maintain most of our outdoor products for those who enjoy the outdoors or have yard care needs. An example is that our suburban customers tend to spend more on pet food and treats vs. a rural customer, and sales of pet specialty brands in urban areas outpace the sale of brands in our rural-based locations,” Stelzl explained.

Across demographics and regions, the noted increase of pet adoptions in the last few years has spurred Do It Best to evolve its pet offerings, said Scheib.

“With the massive increase in pet ownership, we have deepened our pet lines, specifically in dog and cat food, treats and toys,” she said. “We’ve addressed the need to offer our member stores more options in feed sizes and brands. We’ve tracked significant growth in the cat business, so we have added more variety in toys and treats.

We also utilize direct programs with

our vendor partners. So while we might not stock a certain category in all of our warehouses, we will have a vendor who works directly with our member stores to get them the products they need for their customers.”

Fleet Farm has noted an uptick in demand for a certain grade of pet products, said Stelzl.

“We follow market trends, which in general have been toward premium products,” he said. “We’ve expanded our pet department floor space and added brands that customers have been demanding, especially in suburban stores.

We also let our customers in each market tell us what they want us to carry, and we do everything we can to comply.”

At the same time, existing inflationary pressures have consumers holding a bit more tightly to their wallets.

“As with many other consumables, inflation is driving up cost, and some r Cont'd on Pg. 10

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Special Report: Farm and Fleet Channel r From Pg. 6 pet owners need to make different decisions about what they purchase for their pets,” said Murphy. “Fortunately, for the Tractor Supply shopper, we offer tremendous value and quality in our exclusive brands like 4health, Retriever and Paws and Claws, so our customer does not have to sacrifice quality when looking for the best price on food for their pets.”

As many retailers of late have done, Fleet Farm has invested in its online presence to support its e-commerce operation. The company has noticed that many of its customers are utilizing its website for education to support their brick-and-mortar store patronage.

“While we have a robust online presence, we are overwhelmingly a brickand-mortar operation,” Stelzl said. “Our customers tell us they review our website first to ensure we have the brands and sizes that fit their needs. They also tell us they love coming into our stores as they always find other things they need. As such, we have a strong commitment to our stores but offer, via the internet, easy ways to peruse our store offerings from the comforts of home, place an order and either choose to pick up at the store or have the item shipped.

What you see online is what we stock in our stores.”

Do It Best has similarly found the symbiosis between its stores and its online shop.

“Since each Do It Best store is independently owned and operated, they decide which items to stock in their stores based on customer demand,” Scheib said. “Our e-commerce ship-tostore program has given many members visibility to sales opportunities they didn’t have before in the pet category. Member stores are growing incremental business by adding items their customers have purchased online by bringing them in-store. Additionally, leveraging our strategically located warehouses throughout the country, we are able to ship quickly to most US markets.”

The unique local focus of fleet and farm operators seems to ground its customers in utilizing websites as a tool to better inform their in-store shopping PG 10 / PET I N S I G H T

“Since each Do It Best store is independently owned and operated, they decide which items to stock in their stores based on customer demand. Our e-commerce ship-to-store program has given many members visibility to sales opportunities they didn’t have before in the pet category.

Member stores are growing incremental business by adding items their customers have purchased online by bringing them in-store. Additionally, leveraging our strategically located warehouses throughout the country, we are able to ship quickly to most US markets.”

— Laci Scheib, Merchandise Manager for Farm and Ranch, Pet Supplies, Apparel and Sporting Goods,

Do It Best

experiences.

“E-Commerce serves as the window to our great Tractor Supply brand for pet parents,” Nicole Logan, Senior Vice President, General Merchandise Manager for Tractor Supply Company said previously. “Not only does e-commerce allow us to reach new audiences, it also allows us to expand our assortment to ensure we truly can be the pet destination ‘Out Here.’”

Colleague Matthew Rubin, Senior Vice President and General Manager of Petsense by Tractor Supply, offered, “There are many benefits of being a multi-channel retailer. Our most loyal customers shop with us in-store and online. Our ‘Buy Online Pick Up In Store’ business has been a great way for customers to

‘reserve’ inventory and get the product they need in hours versus a few days.

At Petsense by Tractor Supply you can even book an appointment with your favorite groomer online. Additionally, our Tractor Supply app helps customers to track loyalty points which they can earn and redeem at both brands, utilize our MyPet feature to communicate with telemedicine providers, set up subscriptions, shop prescription items and even learn valuable pet care tips.”

The farm channel is unique because stores can offer everything customers are looking for under one roof, and at a competitive retail price, said Stelzl with Fleet Farm.

“Farm stores surpass other channels by offering pet specialty store assortments along with mass retailer selection and prices. With our larger stores we can offer many other categories of goods, deep selections of many brands and products and carry products that are physically large, since we have outdoor and attached storage. Our stores also have automotive services, gas stations, car washes, and we recently opened our first free standing pet wash location.”

Murphy with Tractor Supply said, “Our customers are our friends and neighbors, and we are passionate about providing them with legendary service.

That means answering their questions, providing expert advice and making them feel at home when they visit our stores. Our team members are incredible when it comes to delivering on that experience. Not only do we want our customers to count on us as a dependable supplier of the products and services they need to live ‘Life Out Here,’ we want them to love coming to our stores because they trust our team members and appreciate the service they receive.”

Retailers operating in the farm and fleet channel are uniquely suited to meet a wide variety of consumers right where they live, offering not only a shopping convenience but increasingly more knowledge and even services across a variety of categories both within and outside of pet. They are honing a special expertise needed in being able to provide such a one-of-a-kind form of customer service.

Market Spotlight Los Angeles

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et business owners in the greater Los Angeles market take a zealous and earnest approach when they care for their clients’ animals. Their manner of running a thriving business and providing indispensable services to their communities, makes their offering irreplicable and difficult for competitors to surpass, not to mention catch up to.

The seriousness with which they take of operating and sustaining a profitable business in a highly competitive environment is matched by these business owners’ animated personalities, high energy and unequivocal adoration of pets.

“I really love how fulfilling it is to help dogs feel and look gorgeous, and help pet parents love their dogs even more,” said Jess Rona, owner of Jess Rona Grooming in Los Angeles. “I love that my business is different than every other grooming shop, in that we prioritize the dog's comfort—in addition to a gorgeous haircut.”

One of the most enjoyable aspects of operating a pet business is “spreading kindness and compassion,” said Milya Burian, Owner of To Wag For in Santa Monica, a pet boutique and pet spa grooming establishment. “Velma Bronn Johnson once said: ‘We must remember that our actions towards animals reflect our humanity. It is our responsibility to be compassionate and kind.’ It is an absolute joy to be able to do this in my daily life!”

“What I enjoy most about operating LA Dogworks is knowing that the facility I built was for the dogs, just for dogs,” said Andrew Rosenthal, owner of the Los Angeles-based operation that offers a 24-hour dog daycare, grooming, boarding, training and a boutique.

“I took a different approach and put my efforts into creating a facility built from a health and safety standpoint. I created LA Dogworks for the dogs and hired the best engineer in the business to design our systems. This gives me the confidence to know that our clients are bringing their dogs to a special place, I get great pleasure from knowing this.”

Favorable circumstances

“The opportunities are so abundant!”

Rona said of what makes operating a PG 12 / PET I N S I G H T

pet-related business in Los Angeles so unique. “People in LA treat their dogs like they're children, so they don't bat an eye when I tell them about my services—of course they want a blueberry facial for their dog."

To Wag For has realized its stores on the east and west coasts couldn’t be more different and strives to cater stores on each coast to their clientele.

“To Wag For has stores on both the east coast and west, and while our business practices remain the same, the opportunities and challenges couldn’t be more different!” Burian said. “While clients on both sides of the US purchase frozen foods from To Wag For, our clients in Santa Monica also prefer to purchase their dry and kibble from us. This means we have a greater number of healthy and robust dry food options here.”

Celebrity sightings are a perk at LA Dogworks, depending on how one perceives the definition of a star. “As far as opportunities—and this may be more for the psychic value than anything, we have a lot of celebrity clients so my staff and I do get a little thrill out of caring for their dogs,” Rosenthal added. “When people ask me if we have any celebrity clients I tell them that, at LA Dogworks the dogs are the celebrities.”

One of the major challenges within this market pet businesses face is competitive real estate. “The main challenge of operating a business in LA is the high overhead,” Rona volunteered.

“Operating a dog care center in Los Angeles does present some unique opportunities and challenges,” Rosenthal offered. “If I may start with the challenges, Los Angeles real estate is very expensive, and unfortunately we do not own the building that houses LA Dogworks. We do pay a high rent, and with the 3 percent increase yearly, the rent is always in the back of my mind.”

“Another challenge, and maybe the most important, is putting an incredible team together and keeping them,” he continued. “In the 20 years I have been in business there has been a considerable amount of turnover with employees. We have our key employees that have been with us for many years and I appreciate them greatly. But being in

Hollywood, the center of the entertainment industry, finding candidates who are not chasing careers as actors or other jobs in the entertainment industry can be challenging.”

Services are in demand

Demand for grooming services has evolved in recent years and social media platforms have allowed for grooming businesses to raise awareness of their services and connect with pet owners.

“Definitely my social media has catapulted my business into a different level,” Rona explained. “Not only for my specific service, but because people have access to beautiful grooming online. They know it exists now.”

“In Santa Monica we offer grooming services for your furry family members!” Burian said. “We have a group of long-term groomers with us who are absolutely amazing. To Wag For becomes a one-stop-shop for their needs.

It is not uncommon for our grooming clients to also purchase their food and treats from us. We offer a treat bar that contains many options for their pups!

In recent years more and more people have decided on pet ownership. This has opened the door for people to research and seek out grooming services.”

Progression and prosperity

For these groomers, understanding their clientele’s demands and expectations coupled with a positive reputation have been valuable assets to help these businesses flourish and thrive. “I offer specialty grooming that appeals to the LA community and a cozy environment paired with the iconic interior design of my Larchmont salon,” Rona said.

Burian characterizes running a successful business as a balancing act. “In addition to our reputation for kindness and compassion we work to build relationships with all of our clients,” she said. “Our amazing staff in retail and grooming are the stars of the show.

We work together well and have truly formed a community within To Wag For and with everyone who comes to visit.”

And for operators that offer boarding and daycare, in addition to grooming services, patiently and carefully mulling r Cont'd on Pg. 14

We’re Local Everywhere® Our Expertise, Your Success Our team of experts is your secret weapon. We’re here to educate and support you on all our brands. We deliver success so you can delight pet parents and grow your business.

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Market Spotlight: Los Angeles r From Pg. 12 each detail has led to solid and sustainable businesses which pet owners depend on and trust.

“The key factor that has allowed LA Dogworks to thrive in Los Angeles is the approach I took to building LA Dogworks,” Rosenthal said. “There is no lack of dog care centers in Los Angeles, but after two years of research and visiting several dog care centers around the country, I chose to take a different approach when I built LA Dogworks.

I went to many conventions and trade shows to find the ingredients to put together a proper dog care center. First and foremost LA Dogworks is a 24-hour full service dog care center. We offer boarding, grooming, daycare, training and a boutique. I found Scott Learned, who is without a doubt the best engineer in the animal care industry. After finding the right building and designing my vision, I hired Scott to engineer all the systems in the facility, and one of the keys to our success is our HVAC system which moves the air and handles our heating and cooling. But I took it one step further by adding two cold air plasma generators to our system. In short, Cold Aire Plasma Generator Technology is an indoor air quality product that is designed to naturally clean the air in the facility without using harsh chemicals.

These devices can eliminate a number of airborne germs and pollutants, such as allergens, bacteria and other forms of organic growth. It even has the ability to kill viruses. After all, we are only as good as we smell.”

“Another factor is our 2,500-squarefoot indoor dog park that is covered with K9Grass, the only artificial turf specifically designed for use with dogs,” he continued. “But the key to our indoor dog park is what's underneath. With the surface of the park sloping to a center French drain, we installed a flushing system that we used throughout the day to flush underneath the K9Grass. Any urine is sprayed with a product called Eliminator, a bacterial enzymatic that helps neutralize the urine and helps in controlling any odors.”

Reflecting on the good

For Pet Supply Warehouse, there were many positives for the company in PG 14 / PET I N S I G H T

2023. “Highlights always include meeting our pet parent's dogs and cats instore and having a photo wall of these pets,” said Ray Gutnick, Owner of the Anaheim Hills-based retailer. “Our manager spent hours researching food and treat options for a customer who provided us with an extensive list of their dog’s allergies.”

“For starters, 2023 defined the future of how the store is going,” said The Urban Pet Founder and Owner Zack Grey, a five-store operation with roots in Los Angeles. “We went through the pandemic and then we had these bursts of sales, people got animals and then people started shopping locally versus online. But then I wasn’t sure if that was a false sense of success. So 2023 was really an opportunity to see what is the trajectory of our store. We are so lucky, the sales are even more than last year.

It keeps on building and building. That was a really great defining moment for us. Not only did we survive the pandemic, but then we came out ahead and actually were even more successful than we were before.”

Grey retained about 50 percent of his staff throughout the pandemic. “That was really amazing,” he said. “We lost a lot, but I hired staff during it, and I had a lot of staff before and so that was, in a weird way, a bonding experience for everyone. We went through it and then we delivered to our customers. Looking at my current staff, my general manager has been with me for 12 years, everyone [who] has worked in my store walked through the door—I’ve never hired outside management, I’ve never hired anyone outside. My human resources [employee] has been with me for more than 10 years, and I have a lot of people at the six-year mark—four people made their six-year mark in 2023. One of their bonuses is going to Barcelona with a friend for 10 days. I’m sending four people to Barcelona next year. That’s pretty spectacular. I’m so proud of them, and I’m so proud of the business. I’m so happy because I’m 100 percent owner of the business so I can do whatever I want. I don’t have to answer to anyone. I can pay as I want, I can give bonuses as I want, and I feel so privileged that I’ve been able to do that, that I got to a point in my life where I can do that.”

Grey reflected on one of his new hires being surprised that Grey works on the floor with his staff. He said, "She said I’ve never worked with a boss who actually worked side by side with everybody.’ I do. I work side by side with everyone in the store. It’s a symbiotic relationship.

It’s a mutual relationship. That’s the key to the success of any business is the owners have to be involved and they have to understand what is actually like to be on the floor—they have to experience the good and the bad.”

Serving pet owners

Pet Supply Warehouse continues to serve pet owners in their community by “Hosting pet adoption events, holding low cost vaccination clinics, attending community pet events and advertising in local magazines,” Gutnick said. “Providing extensive product training for the staff, so that they can provide our customers with informed information.”

“We emphasize when people start working here is training never ends,” Grey said. “There is always new product, there are always new things developing, there are always new customers.

All of these things are learning experiences. We continue by always educating our staff, really emphasizing what the experience is, why are they coming to us when they can go down the street to somebody else or they can go online. What is it that we offer, and what we offer is the experience, and we offer knowledge. Pets are our children in this city and people know that.

He added, “I have a passion for people and a passion for business and of course I have a passion for animals. But you have to have a passion for business and for people and know how to treat people. I love what I do. I love customer service. I love doing it. If I ever show up to my stores, and I don’t want to be here, then I know that it’s time to get out because that will spill over into everything else.”

The Los Angeles pet market is a better place for having this select group of business owners at the helm. Their serious take on running the grueling dayto-day operations of retail, grooming and boarding are balanced with their unapologetic love for animals and drive to make sure each pet is healthy and properly cared for.

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First Take

Premium Foods Key Takeaways

• Focus Areas: Functional benefits and science-backed formulations are central themes for top premium pet food manufacturers, catering to pet parents with diverse priorities who are also looking for value.

• Consumer Preferences: Pet owners are willing to pay more for products they perceive as wholesome and better for their pets, driving companies to build partnerships and make premium foods more accessible.

F

unctional benefits, science-backed formulations and sustainability are some of the focal points for leading premium food manufacturers coming into 2024. Pet parents who feed their pets premium food approach the category with an array of priorities, but one thing they have in common is the willingness to pay more for food from companies they want to support, who make products they deem are more wholesome and better for their pets. Obligingly, premium food companies are working with assorted partners in retail and in their own communities to build meaningful partnerships with the long-term goal of making premium foods accessible in support of pet health and wellness.

“The consumer is at the heart of our growth strategy for Primal Pet Group, and we’ve been working to better understand their needs,” said CEO Jon Balousek. “We also recognize that the consumer journey is no longer linear— it begins before the pet parent enters a neighborhood pet store and continues well after they leave. As such, it is critical that we have a 360-degree approach to reaching the pet parent. We’ll continue to invest in our in-store promotions and retail education and training programs, but we’ll also start investing more heavily in consumer marketing to drive awareness and trial of our Primal products.”

Balousek continued, “As we look to the future of Primal, we also know that innovation is critical to our continued success. We’ve always been committed to feeding pets the way nature intended and have continued to look for new ways to reach more dogs and cats with that mission. It took three years of innovating for us to develop a new product format that would help make raw nutrition more convenient and accessible to the kibble consumer. With our launch of Kibble in the Raw in January, we believe we are bringing very significant inno-

PG 16 / PET I N S I G H T

vation to the kibble aisle by delivering the benefits of raw nutrition in a convenient format that serves like kibble.

It’s an incredibly unique innovation for our industry and we are excited to have many households experience it in the year ahead.”

“We are really excited about what we have planned for 2024,” said Jenna Fortin, Director of Communication at Petcurean. “We have gained great momentum throughout the years with an array of innovative product launches, and that will continue into this next year and beyond. From premium pet food to functional wet food toppers and more, we look forward to sharing more details when we can. We are also kicking off the year with the release of our 3rd Annual Sustainability Impact Report in January, and we’re continuing to transition our bags to recyclable packaging as part of our commitment to the Pet Sustainability Coalition’s Packaging Pledge.”

Petcurean’s alignment with the Pet Sustainability Coalition has guided its product development beyond just packaging. “We expect that several of the key trends that have impacted the industry throughout the past few years will continue to influence the direction of the premium foods category,” she said.

“Sustainability remains a key consideration and this will be reflected across the business—from recyclable packaging to the increasing usage of alternative proteins and sustainable ingredients in pet food recipes, and more. We also expect to see functional pet food and treats continue to shape the industry. We know that the premiumization of pet food has had a major impact on the industry, and companies will continue to respond to consumer demand through innovative products that allow pet parents to choose the right pet food recipe format based on the individual needs of their pet. After all, no two pets are the same.”

Purina is also one step closer to its first sustainability market this year.

“Sustainability will absolutely be a focus, as this year brings us within reach of our 2025 sustainability goals: 95 percent of our plastic packaging will be designed for recycling—up from 90 percent today—and 100 percent renewable electricity across all our manufacturing facilities by 2025, said Joe Toscano, VP of Trade and Industry Development. “In the space of product development, at Purina, we work hard to not get distracted by premium food trends that aren’t grounded in science.

We don’t follow fads around certain ingredients or buzz words. The best ingredients are the ones that work together to enhance one another's performance, and each must be selected for a specific purpose. Our more than 500 scientists, nutritionists, veterinarians and other experts on staff help keep us focused on the goal of extending the happy, healthy years of pets' lives, rather than getting distracted by trends that won’t contribute to that overarching goal.”

For NutriSource, 2024 holds much potential for the segment of premium food that often plays second fiddle to the canine set. “When it comes down to it, historically we’ve been known as a dog food company but that’s all going to change,” said Marketing Director Adam Martodam. “We’re working to expand and enhance our cat offerings both in Delano, MN in our small-batch cannery and treat facility and with our dry products up in Perham, MN. We’re working full speed on creating the most palatable wet and dry cat foods in the industry. We hired a new head of R&D, and we’re currently well into formulations and feeding studies with the intention of enhancing all our canned foods and looking at new formulations in our cat dry category to stay ahead of the global growth of cats. We love our companion animals equally.”

First Take Grooming Key Takeaways • Innovations and Expansion Plans: Companies are focusing on customer-centric approaches, offering valuable insights and developing strong relationships with retailers, groomers and consumers.

• Consumer Priorities in Economic Times: Pet owners are supporting brands based on transparency, trust and the ability to deliver actual results.

• Supply Chain Strategies and Stability: Domestic manufacturing provides a significant advantage, as all brands work to build supply chain resilience.

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et owners continue to inform themselves about the ins and outs of pet ownership, especially when it comes to breed-specific needs. Within these needs lie hygiene maintenance—enter the grooming category. Manufacturers within the space are providing products that meet these breed-specific needs as well as products that support the common, everyday hygiene regimen.

Leading companies have planned to launch and expand their product offerings within the grooming category while reflecting on their success of the past year. “In 2023, our brands experienced significant growth, setting the stage for an even more promising 2024 and 2025. The anticipation for these upcoming years is twofold. Firstly, we're thrilled about the success we’ve found with many customers and partners aligning for ambitious growth plans for the new year. Secondly, a groundbreaking innovation is on the horizon for the TropiClean brand in the grooming space. We're eagerly anticipating this development and will be sharing more details soon,” said Bryan Williams, Sr. Channel Marketing Lead, Global Distribution Chain. “Looking to 2024, our focus remains steadfast on our customers. Our commitment is to provide them with insights and unwavering support, aiming to be the best partners and category consultants for their success.”

“Skout's Honor's focus for 2024 will continue to be on our customers,” said CEO Pete Stirling. “The industry has faced a lot of hurdles during the past three years, but the one thing that has remained consistent is the relationship between a retailer and the consumer.

This coming year will be defined by how well we develop the intimate relationship between our brand and the people who rely on us to provide product solu-

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tions that strengthen the level of trust between the retailer and their customer base.”

Consumers have continued to put their pets first even in tougher economic times, but alongside this, companies are striving to meet them where they are at. “Although it’s been felt in waves with the economic situation, consumers are going to demand that their dollar go further than ever before. Whether that’s talking about performance in a product or the quantity, consumers are in a position where they need their dollars to work and they’re going to choose the brands and products that can perform while maintaining their budgets,” Williams continued.

“Best Shot’s brand integrity continually blossoms through the willing transparency of our ingredient disclosure, mindfully concise mission statement, legitimate consumer value and ongoing passion to promote successful grooming through genuine product innovation. Best Shot delivers actual results, rather empty promises! We get dirty jobs done right!” Dave Campanella with Best Shot previously said. “Today’s pet shampoos and conditioners are not merely pleasant-smelling soap. They can be sophisticated surfactant systems that mindfully integrate science and nature. Take a closer look at the items you use on yourself and your pets. Appreciate the decades of research and chemistry behind them. People purchase from stores whom they trust, identify with and believe in. More and more savvy consumers are selecting trustworthy brands that manufacture and market with integrity.”

Looking toward the horizon of possible developments that could affect the category, companies lean on their leadership efforts to ensure stability and

the ability to keep moving forward. “We are fortunate to adopt an approach that prioritizes local sourcing whenever feasible, encompassing both ingredients and packaging,” Williams added. “This strategy has enabled us to achieve a remarkable 90 percent sourcing within the US, with a significant portion originating within just a few hours' radius of our headquarters and manufacturing facility in St. Louis, MO. This not only guarantees the highest quality materials but also positions us favorably, as we are less susceptible to the supply chain challenges that often impact organizations heavily dependent on international markets.”

“Supply chain issues have calmed down a lot in recent months. There is definitely a strong advantage to domestic manufacturing that will persevere though the new year and provide weight to brands that have put a longterm focus on supply chain over the past 24-months,” said Stirling.

Pure and Natural Pet has never wavered in its commitment to only use the absolute best ingredients in its products. “We are always on the lookout for new and improved items. Beth Sommers, the company founder, is obsessed with sourcing and using the perfect ingredient package for all our items,” said President Brian Taus.

As the grooming category encompasses several subcategories, Pure and Natural Pet has had laser focus on providing pet owners with easier and safer ear care solutions. “We’ve made ear care easier than ever. Safe for both cats and dogs, our Ear Cleansing System comes with 15 Double Sided Medical Grade Tips and 2 fl. oz of USDA Certified Organic Ear Cleansing Serum to clean, disinfect, deodorize and protect against ear infections,” said Taus.

First Take Dog Beds Key Takeaways

• Expansion Strategies: Dog bed manufacturers are capitalizing on brand recognition by leveraging comfort and quality reputation from the mattress category into the pet bed market.

• Retailer Support: Companies are supporting brick-and-mortar pet retailers by offering a smart assortment of sizes and designs to enhance in-store shopping experiences.

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og bed manufacturers are entering a new year intent on expanding existing brand presence and recognition in the category. Some companies have leveraged their reputation for comfort and quality on the human side within the mattress category. Another key area of focus is backing brick-and-mortar pet retailers. With the right assortment of sizes and designs that are smartly displayed, manufacturers are focused on making sure pet beds present an opportunity for basket rings, particularly when pet owners are in store shopping for more frequently purchased commodities such as litter, food and treats.

In 2024, Standard Fiber will continue to grow its presence in the pet bed category through its exclusive licensing partnership with Tempur Sealy International's Tempur-Pedic and Sealy branded pet beds. “We launched both brands in 2023 and have had a tremendous amount of interest from key retailers,” said Standard Fiber’s VP of Pet Sales Leslie Morris. “With the marketing power and brand recognition of these two powerful brands, the transition to the pet bed category is a natural fit.”

“Another big initiative is to expand our own Petnology brand as well as working with key customers to supply their private brands,” she continued.

“We are looking forward to the opportunities we have in 2024 with both new and existing customers.”

“Snoozer Pet Products remains committed to cutting, sewing and assembling our beds in our factory in South Carolina,” said VP of Marketing Gary O’Donnell. “Our focus in 2024 will be product development for beds that we can offer exclusively to brick-and-mortar retailers. We see these retailers as continuing to provide a key service to the consumer, and in order for these retailers to be successful they need to offer products that can compete with larger retailers as well as online suppli-

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ers. By offering a high-quality product at a reasonable price manufactured in the USA, we believe they can offer real value to the discerning consumer.”

Several projects which Molly Mutt leadership has been working towards came together and were completed in 2023 including achieving their Climate Neutral Certification through Climate Change. “We launched a program with Pet Food Experts in 2023, which is off to a great start and really supports independent pet stores in the way they want to buy product,” Co-Founder Art Simon explained. “They want to buy it through distributors. We’re thrilled with Pet Food Experts. Everybody seems to love them—all the stores do—and they do a great job. We’re happy to embark on that partnership in 2023.”

In 2023, Molly Mutt introduced their first certified organic products as well.

“We got certified organic product which is something we’ve been working on for a number of years,” Simon said. “A lot of focus has been on really accelerating our adoption and becoming more focused on things we believe the consumer cares about, which is great quality products that are responsibly sourced.”

“Another 2023 achievement for us that we were happy to get done was all of our fabrics are independently certified as chemical-free,” he continued. “So we have certification on our standard cotton canvas products, and our new organic products are certified organic.

All of this is designed to give the consumer peace of mind that they are buying products that don’t have harmful chemicals. So many products do. With so many products in the pet industry, when you open the box, you’re assaulted with a chemical smell. People are trying to source the least expensive thing they can in a mass market way, and you get around that through these methodologies. We thought it was important to have third party confirmation of

the way we are building our products: chemical-free and healthy. It matches where the consumer is.”

In the coming year, Standard Fiber is enlightening pet owners about the functionality of their beds and the features that not everyone else offers. Their beds provide fabrics that mitigate odors and cooling fabrics to aid pets with regulating their temperature and are infused with scents intended to soothe pets.

“We continue to believe in developing and marketing pet beds that have features and benefits that make your pet safe and comfortable and caring for their beds easier,” Morris said. “Our Petnology brand of beds brings the technology you are looking for in your own bedding to the pet bed market. In our Petnology beds you will find features such as antimicrobial treated fabrics that greatly decrease odors, cooling fabrics that help your pet regulate their body temperature as well as micro-encapsulated fabrics with CBD properties or lavender scents that may help to calm your pet.”

Manufacturers are enriching pet owners on the correlation between pet owners’ expectations and requirements for top notch quality and speedy delivery and costs.

“We continue to see flux between online sales channels, large online retailers and traditional brick-and-mortar retailers,” O’Donnell said. “The big issues driving movement between all these channels is the difference between imported products and domestic manufacturers, the cost of shipping and who bears the cost of shipping. Consumers still largely believe that shipping is free, in spite of the fact that it is usually the most expensive cost that we see. If shipping remains a cost of doing business, then consumers will either be willing to accept lower quality products if they are price sensitive or recognize that quality and durability come at a premium.”

First Take Fish Oils

Key Takeaways

• Strong Foundation: Influential companies in the fish oil category operate from their deeply rooted values and objectives, which drives how they face challenges and prioritize goals for the upcoming year.

• Transparency and Pet Health: Focus areas include maintaining transparency, helping pet owners understand the benefits of fish oils for skin, coat,and joint health, and ensuring the quality of products administered to pets.

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he companies influencing and guiding the fish oil category are deeply rooted in their values and objectives.

This strong foundation and sense of identity comes through in how each company faces adversity and decides where to prioritize and lock in the company’s goals for the upcoming year. Other key areas of focus within the category is maintaining transparency and helping pet owners understand what they are administering to their pets and how fish oils can enhance the appearance of pets’ skin and coat and ease the pain of stiff, locking joints.

“We are excited to enter the year 2024 with great enthusiasm,” said Analise Gonzales, Director of Brand Marketing for Alaska Naturals Pet Products.

“As a proud member of the Trident Seafoods family of brands, we are deeply committed to upholding the values of quality, sustainability and innovation.

Being a family-owned company, we take pride in embracing our core principles and delivering Alaska's wild essence to beloved furry companions.”

“We recognize the growing trend of humanization in the pet industry, where pets are increasingly considered integral members of the family,” Gonzales continued. “In line with this, our focus remains on providing sustainable products that cater to the needs of the entire family. We are dedicated to ensuring that our offerings align with the evolving demands of pet owners who prioritize the well-being and happiness of their pets.”

“Our focus this year is to maintain the high-quality fish oils we have built our reputation on and continue to be truthful in our labeling,” said Life Line Pet President Ted Hayes. “Life Line was started 20-plus years ago because I didn’t trust what our competitors were putting in their bottles. Nothing really has changed in all those years, so we will reiterate that what it says on our

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bottle is what you get. We utilize only wild, sustainable fisheries and do not support open ocean fish farming or farmed fish products.”

As for Brilliant Salmon Oil, finding reliable channels to connect and engage with retailers and pet owners is top of mind going into the new year.

"As always, one of our main focuses in 2024 will continue to be on education, business support, and solutions for retailers and consumers," said Bill Lowe, President North America. "Brilliant Pet Care is the only salmon oil company that has end-to-end control of its harvest-to-production process, and as always, this is our mission to provide ultimate transparency from initial quality source to the home of every pet."

"In a category that tends to be fairly saturated, we are unique in that we have complete control over our entire supply chain, allowing for the traceability of all of our products," Lowe continued. "As such, we are a premium brand for consumers, and because of our positioning, our customers and distributors can make strong margins. Our company and products are 100 percent Natural and Zero waste. We don’t deviate from this foundation. For that reason, customers and consumers love our brand and remain loyal."

Alaska Naturals Pet Products anticipates a bright year for the fish oil category and overall pet industry. The company foresees suppliers across categories making progress in their sustainability measures and initiatives while simultaneously mirroring pet owners’ expectations of having products made domestically. “In a dynamic and expanding industry, it is typical to witness the emergence of new developments and trends,” Gonzales said. “At Alaska Naturals Pet Products, we anticipate a continued emphasis on promoting sustainable wellness for our beloved furry family members. We believe there

will be a stable demand for high-quality products that are proudly Made in the USA. We take pride in our commitment to maximizing the value of every fish we catch, ensuring that our products are of the highest standard. Alaska Naturals is part of the Trident Seafoods family of brands. Family-owned since 1973, quality manufacturing is at the forefront of all Trident does.”

Alaska Naturals Pet Products hasn’t shied away from resistance within the supply chain and plans to further hold the company’s commitment to excellence to retail partners and pet owners to high standards. “Trident holds itself to the same high standard as they hold their product–from the icy waters in Alaska to the packaging of the final treats and oils,” Gonzales said.

Life Line Pet has remained selective, not only when it comes to choosing safe and effective ingredients and the caliber of quality of its products, but particularly when it comes to selecting the right companies to strategize and collaborate with. “As a leader in supplying the highest quality fish oils specifically to the pet market we have built relationships with the highest quality producers around the world,” Hayes said. “We are not tied into a single fish producing conglomerate and as a result we can pick and choose our raw materials based on quality and lab results. We can be certain of the integrity of our ingredients.”

Nordic Naturals is well aware pet owners want to have peace of mind when it comes to the companies they support. “We are always looking for better ways to meet our customers’ needs, primarily in terms of their family’s health and wellness, but also in the values and priorities we share,” Ric Duncan, Sr. Director of Sales said previously. “People want to feel good about the companies they support alongside the value they get from the products they purchase."

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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.

First Take

Body Part Chews Key Takeaways • Functional Benefits: Body part chews, such as bones and stuffed products, provide functional benefits, including mental stimulation, a mix of textures and a satisfying chewing experience.

• Embracing Natural Alternatives: Pet owners are embracing natural alternatives to processed rawhide, turning to more easily digestible natural parts that offer a varied chewing experience and additional protein for their dogs.

• Sourcing and Quality: Sourcing quality products from American farms appeals to conscientious consumers and contributes to easier supply chain logistics.

• Credibility with Partners: Maintaining a high fill rate of 99 percent builds credibility with retailer and distributor partners. Consistent availability of products and the introduction of new exciting items in the chew s and treats category enhance partnerships.

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et specialists all agree that the act of chewing and gnawing is a natural, instinctual and necessary activity for healthy and well-adjusted dogs. Within the range of product options the pet industry has innovated to serve this need, body part chews have risen in popular consciousness because of their proximity to naturally occurring chewing targets like bone, but also because they still allow for innovation to optimize the functional benefits a dog can receive from a satisfying chew session. Further, these chews take a notable amount of time and effort to whittle down, which is a benefit for pet owners working from home or struggling with some grooming tasks like trimming nails, to help keep pets enriched and functionally distracted.

“Our Stuffed Product line continues to see success,” Jones Natural Chews Co. President Laura Jones said last month.

“Enrichment feeding and treats have exploded in popularity, and our 2-in-1 stuffed bones, hooves and trachea fit the bill perfectly. Dogs love digging the filling out, so we began filling a 7-inch bone in addition to our classic 4-inch.

That is currently available hand-stuffed with our Peanut Butter flavor filling and our Cheezy Bacon flavor filling. Those are favorite flavors and paired with a classic bone, dogs have a great chewing experience that is as simple as unwrapping the chew.”

Jones Natural Chews attributes that growth to pet parents’ desire to keep their dogs from destructive chewing.

“A 2-in-1 chew provides much-needed mental stimulation and a great mix of textures, and it offers a really engag-

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ing chewing session,” Jones said. “That has been a real priority for dog parents shifting back to their pre-pandemic schedules.”

While the stuffed products represent a new innovation in the category, Jones said there is still much value in giving dogs all natural chewing options, like bone.

“We are always working to help customers see the benefit of a classic bone,” she said. “They offer a great chewing experience and dogs love the flavor, but there is more to it than that. The gnawing action of chewing on a bone provides mental stimulation and keeps teeth and gums clean, plus the natural greases and fats are great for skin and coat health. Dogs should always be supervised while chewing and that is a part of the experience that is so important, from not only a safety standpoint, but because of the opportunity to further cement bonds between owners and their pet.”

Jack & Pup’s body part chews also adhere to simplicity.

According to its marketing material, “Our bully sticks are made from a single ingredient: 100 percent beef pizzle muscle from grass-fed cattle. They are an all-natural, high-protein treat that provide many benefits for your pup while satisfying their need to chew.”

Jack & Pup also offers chews in the form of beef and pork bones and ears, as well as elk antlers that have been naturally shed.

Pet owners are coming full circle to natural chewing options for their dogs outside of processed rawhide, said Jones.

“Customers are starting to really embrace rawhide alternatives,” she said.

“Consumers have turned to numerous other, more easily digested, natural parts and that is great. Natural parts offer dogs a great and varied chewing experience, while also providing extra protein for their diet. It is a win-win scenario when pet parents discover their pets’ favorite new chew.”

A large point of differentiation for Jones Natural Chews is the sourcing of its raw materials, which not only appeals to an increasingly conscientious consumer but also makes some supply side logistics easier to manage.

“Remaining steadfast in our commitment to source the highest quality product has been a sound strategy for our team,” Jones said. “Each bone, chew and treat recipe begins with US raised meat, which ensures that we are offering a great product, helps us keep our carbon-footprint in check and allows us to feel some pride in supporting American farm families. More and more individuals are seeing the value in natural products, for their pets, and learning more about the benefits. Offering quality products is a great way to grow the category and no dog owner is going to be able to deny how enjoyable a natural chew is, for their best friend.”

For its partners, “Our fill rate is 99 percent and that certainly lends us credibility with our retailer and distributor partners. They can trust that our product will be available for their shelves and that we will consistently offer new exciting products in the chews and treats category,” she said.

First Take

Grain Inclusive Premium Foods Key Takeaways • Consumer Preferences and Trends: Consumers prefer pet foods that resemble their own foods and meals, opting for less processed and more recognizable pet foods and aligning with changes in merchandising, storage, handling and communication about proper use and preparation.

• Concerns and Education: While there was speculation about possible links between grain-inclusive foods and Dilated Cardiomyopathy (DCM), a heart muscle disease, current research has led veterinarians to conclude that having grains in a dog's diet is beneficial.

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s more research has surfaced, veterinarians—for the most part— have been recommending that dogs should eat grain-inclusive food if they can digest it. Many pet parents were resorting to grain-free premium food for several reasons such as allergies and dietary restrictions. On the other hand, there were some pet parents continuing to educate themselves on possible links of grain-inclusive foods to DCM, a disease of a dog’s heart muscle, so they began to opt for grain-free food options in the hopes to prevent any heart complications. In a small change of events, vets are now concluding that if a dog can have grain, that it is best to keep it in their diet.

“This coming year Nulo will be focused on building brand awareness and building on the foundations of our organization,” said Greg Aldrich, COO at Nulo. “Nulo’s ‘Fuel Incredible’ campaign has been generating momentum in the active lifestyle communities since Q3, and more content will be forthcoming as we head into an Olympic year. On the business building front, we are launching a multitude of innovative new products through our strategic retail partners and at Global Pet Expo. 2024 will be the culmination of strategic longrange planning and high velocity execution for our company.”

“We are steadfast in our integrated sustainability commitments and have set ambitious goals including working towards responsibly sourced fish, packaging designed for recycling and zero waste to landfill,” said Nicole Suteau, Corporate Sustainability Manager for Orijen and Acana pet foods. “As leaders of sustainability in the pet food industry, our goals align with our purpose To Earn Pet Lover Trust Every Day so Pets Thrive for a Lifetime, which means not

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only do we create nutritious, biologically appropriate food for pets, but we’re also focused on championing causes for the environment while doing so.”

“We’re seeing a trend in consumer preferences toward pet foods that are more akin to their own (human) foods and meals,” said Aldrich. “It’s a subtle shift away from traditional pet foods and toward those that are less processed and more recognizable. Not entirely unprocessed, per se, but produced in a manner that is consistent with human foods. With those changes come special considerations in the way foods are merchandised, stored, handled and the communication about their proper use and preparation.”

As we have turned the page on 2023, the new year presents several opportunities as well as challenges. These leading companies have remained prepared for whatever may come in the new year.

“Coming out of the Covid pandemic with very disrupted supply chains and logistics, we’ve seen a return to normal throughout this past year. Commodity prices have generally stabilized, and fuel and transportation costs have remained relatively flat. That has allowed companies to work through backlogs and inconsistencies with inventory and become a bit more consistent with the way food and supplies moved through the system—comparable to pre-Covid.

There are still concerns on a global level that some of the conflicts overseas could disrupt this current state of harmony. But, that hasn’t been affecting the flow of goods to any large measure.

We’re forecasting relative calm in the flow of goods and stable raw material prices well into 2024,” Aldrich said.

“We pride ourselves in building lasting, meaningful relationships with our stakeholders, and that includes our

ingredient suppliers,” said Ernie Ambrose, VP of Marketing for Orijen and Acana pet foods. “While it can be tricky to speculate what challenges might be on the horizon from a production perspective, our goal is always to mitigate disruptions and deliver quality nutrition to pet lovers and their pets.”

As education has become a huge part of this category, companies like FirstMate have been working year-round to support its partners. “The FirstMate marketing team has been focused on implementing additional tools to support our indie pet partners, specifically our virtual training portal. Our portal includes a series of 12 short videos with accompanying Q&As. It has been designed to supplement our in-store discussions by providing a strong foundation in brand knowledge for new employees and a refresher on our unique features and benefits for industry veterans. It is also mobile-friendly with easy start and stop functions. Retailers can also expect strong product discounts on our existing SKUs and new items, including our New Zealand beef formulas,” said FirstMate's Matt Wilson.

“Our retail partners are forward-thinking and share our commitment to quality, innovation, and customer satisfaction. They understand the importance of a product that feeds well and a brand that listens to aid in developing joint growth strategies. We believe that our long-term partnerships with retailers are essential for providing exceptional customer service and support, as well as ensuring that our products are available to pet parents.

We work closely with our retail partners to develop joint marketing strategies, provide in-store training and support, and ensure that our products are always in stock,” said Wilson.

FIR S T M A T E

MASS BRAND

same satiety & calories in fewer cups of food

First Take

Air-Dried Foods Key Takeaways • Nutrition Retention: Pet owners are drawn to the category's focus on whole nutrition, minimal processing and the preservation of nutrients often lost in traditional manufacturing processes.

• Additional Nutritional Ingredients: Air-dried foods manufacturers prioritize enhancing the nutritional profile of their products by incorporating ingredients such as goat's milk and collagen.

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ustainability is an important asset that is driving sales in the air-dried food category. More importantly, pet owners continue to be drawn to the whole nutrition and minimal processing that the category offers, given that nutrients often get lost in traditional manufacturing processes. Air-dried food makers, on top of preserving nutrients, also prioritize adding ingredients like goat milk and collagen to enhance their products’ nutritional profile.

“Pet parents have a continuing focus on solutions and functional ingredients in pet food,” said Kelly Walters, Brand Leader Pet Foods with Redbarn Pet Products. “As pet parents look to fully support their pets’ health, products continue to surface that target the needs that are important to them—digestive health, immune support, skin and coat health, calming, and so many more. Pet parents also continue to gravitate to the alternative feeding category—with more minimally processed foods for their dog. As pet parents continue to look for different ways to feed their pets, or different ways to add variety at mealtime, we’ll continue to see expansion in the options manufacturers offer to help support these needs.”

“In 2023, ZIWI did a great job at reaffirming our air-dried leadership and status as the global leader and innovator within the space,” Senior Marketing Manager Jessica Krueger said previously. “In such a growing segment of alternative-to-raw nutrition, we’ve seen many competitors enter this space which is a testament to our ZIWI Peak Original Series’ reputation. This year we also were able to improve the capacity of the production of that line at our new super-kitchen in New Zealand and re-saturate the market with our ZIWI Peak canned wet recipes for dogs and cats. This has allowed us to grow our stake in claiming a greater share of pets’

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bowls, as we provide highly nutritious and palatable options for pet parents, allowing them to introduce new textures and recipes to their pets’ diet.”

JAC Pet Nutrition, which also operates across multiple categories, is eyeing product expansions in 2024 as well.

“The coming year is full of new products and expansion,” said Founder Charlie Bachkora. “We are launching a new line of goat milk and collagen products that will show some real innovation in two categories. We are always focused on sustainability and how we can improve in that area. Our goal for 2024 is to become a certified Upcycle manufacturer.

Plus, we will expand our current UpcycleD ingredient list to include more UpcycleD ingredients in our current and future product offerings.”

JAC Pet Nutrition switched processes from dehydrating food to air-drying food two years ago, said Bachkora.

The company’s product line includes its Superfood Crumbles air-dried food toppers in chicken, beef and salmon flavors. “Our supply chain has been very good and we do not see any issues with our ingredient suppliers,” he said. “We are in constant communication with them to make sure they can support our order cycles and timelines.”

For the new year, “We expect to see more products in the air-dried category for food and treats with lots of innovation,” Bachkora said. “Our goal is to launch an air-dried food in the last half of the year that will bring innovation to the market. Our new air-dried facility and process is very efficient and we will be able to support any demand that will arise in the future.”

There is an educational component to supporting the growth of the category too, especially for newcomers, said Krueger with ZIWI. “We’ve been hard at work on educating retailers and consumers about not only the nutritional

benefits of air-dried food, but also the functional benefits,” she said. “Many pet parents aren’t quite sure how to enter the alternative-to-raw world, and products like ZIWI Peak provide the perfect solution. Our air-dried recipes are designed to work as a treat, topper, or complete and balanced meal, so pet parents can take a phased approach into leveling up their pets’ bowl. This then provides a wider window of opportunity for retailers to recruit new consumers to the alternative-to-raw space, helping increase that basket value over time and in a paced manner for the consumer.”

Redbarn has seen consistent growth in its dog food business through partnership with its independent retailers, said Walters. “We’re continuing to focus on our growing our pet food in targeted and strategic ways, while also growing our treats and offering unique products that provide solutions for pet parents,” she said. “We continue to work closely with our retailers to provide effective, enticing promotions that are helpful at driving on-shelf and in-store consumer engagement. Additionally, we continue to focus on education for both retailers and consumers through various targeted channels. We will be focused on continued innovation in both our food and treats categories—providing the solutions that pet parents are looking for and filling white space at shelf.”

Pet owners are increasingly looking for products that target and support different health issues, Krueger said. “Consumers are looking for products that specifically address common health ailments like skin and coat health, heart health, brain function, mobility and so on,” she said. “While our air-dried range does not feature those benefits on the front of the packaging, when you turn it around, you’ll see the proof in our ingredients."

Variety pets love, nutrition they need. us.ziwipets.com | Contact ZIWI for more information and for sales +1-877-464-9494

First Take Dog Chews Key Takeaways • Growing Demand Driven by Pet Humanization: Pet parents are increasingly educating themselves on the best chew options based on factors like breed, size and age.

• Product Innovation and Expansion: An inflationary economy along with pet humanization inspires new products including collagen chews and budget-friendly entry level SKUs. • Focus on Sustainability and Ethical Practices: Companies continue supporting education and best practices regarding the value of safe, natural and nourishing chews for dogs.

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s the humanization of pets has continued to lead and lay the foundation for manufacturers to conitnue filling white space within the industry, it has also amplified the demand for a variety of dog chew options as pets continue to have preferences and dietary restrictions. Pet parents are continuing to educate themselves on the best options for their specific type of dog regarding breed, size and age.

Specialty Product Resources (SPR) has remained focused on many things throughout the year but recently has homed in on more specific aspects to ensure ample growth for 2023 and beyond. “We have landed several major accounts in private label and branded which has set the groundwork for growth to continue through 2024. SPR pet is focused on shipping on time, providing the best value/price, quality and servicing our customers with 100 percent fill rate. This will lead to increased business for 2024 into 2025,” said Joe DiStefano, VP of Sales and Marketing, Specialty Products Resources. “We continue to grow our customer base with our new sales team, so that we are not top heavy and now have the ability to add business in different channels of the pet business. We added an additional warehouse in 2023 and plan to add one more in 2024/2025.”

Another exciting prospect the company has in store is, “In 2024 we will be in South America to expand our supplier network to find the highest quality product, keeping our prices low, securing the best partnerships with current suppliers and projecting to increase some of our imports from South America,” DiStefano said. “We do not see any changes in the future, but if there are, we are a nimble organization and are fortunate enough to be able to

PG 30 / PET I N S I G H T

change direction quickly. We will stay the course and concentrate on the new products we have brought in the last 18 months, which include: • Collagen Soft Chew, two brands, 10 SKUs, since collagen sales continue to climb.

• Expanded the Butcher Shop line to bigger packs and bigger rings for our customers.

• Added 13 SKUs in the $1 and $2 for entry level placement giving the consumer a chance to try our product and then buy larger sizes since we know their pets will love them.”

“In 2023 and into 2024 we have added accessories into our product line to expand our assortment of categories such as: a full line of retractable leads, a full line of pet beds, a line of stainless-steel pet bowls, some rope-based dog toys, eco-friendly waste bags and dispensers, eco-friendly pet wipes, bamboo and eco-friendly puppy pads.

We will be introducing many new and innovative products at Global this year!

We are working on two exciting brands adding to our assortment of premium quality treats at a lower price than competitors since there are still signs of an upcoming recession. Our goal is to give the consumer a good value feeling with a low per ounce price but a high-quality product. We want the pet parent to have a happy feeling when purchasing our product. We also will have a control label and a private label for some of our main customers,” said DiStefano.

As a well-established leader and company in the industry, NPIC’s foundation has helped guide the company throughout the years. “Innovation is the cornerstone of NPIC’s history, built on the idea that we could create rawhide-free dog treats that were both safe to digest and effective for dogs, while alleviating

pet parents’ stress,” said Kim McClure, Senior Marketing Manager. “We carry that same thought process throughout our product development to ensure we can offer the most natural and functional products for dogs, cats and small animals. NPIC continues to pursue healthy, alternative plant-based ingredients that can enhance the current pet category offerings. We are looking forward to the future of our company and the various paths we can take this technology.”

The company plans to launch a new product and expand on its current line that combines the benefits of chewing with ingredients to help soothe pets. “In February, we will release a new product called Flossta, made with a new form factor with a unique spiral design that has a floss-like structure perfectly to help reduce dog’s plaque and tartar buildup. And Flossta is a dual-action dental chew made with natural herbal breath fresheners like parsley and fennel. Understanding that pet parents are paying more attention to condition-specific care for their dogs, like calming health, NPIC continues to add to our functional brand, Get Naked, with our Calming Health chew sticks made with a proprietary blend of lemon balm, lavender oil, chamomile, hops flower and passionflower to help ease dog’s anxiety,” said McClure.

NPIC touched upon the trends in the industry that have shaped the growth of the dog chews category. “Alternative protein sources and plant-based ingredients seem to be a continued growing trend into 2024. With our continued research, NPIC is working on future products within the plant-based trend.

Releasing new form factors that are also functional more than just design also seem to be key along with innovational ingredients,” said McClure.

First Take Oral Care Key Takeaways • Holistic Approach to Dental Care: Companies anticipate that consumers will increasingly seek dental products with natural and organic ingredients, avoiding chemicals that are not safe for daily consumption.

• Supply Chain Resilience: Companies have learned from challenges, especially those posed by the Covid supply chain disruptions. Investments are being made to reduce transit time and improve overall efficiency.

L

ooking ahead at the new year, leaders in the oral care category have continued to push through the challenges and hurdles that have been present throughout the industry, but also those presented through feedback provided by pet parents and retailers alike. In an effort to ensure efficiency, these manufacturers focus on using consumer feedback about delivery, effectiveness and safety to drive innovation and growth to their product lines.

“We have multiple areas of focus to continue our growth in 2024,” said Tom Lunneborg, COO, Oxyfresh Worldwide.

“Our product development team has been working for the last two years on new innovations. In 2024, we will be launching two to three new products in the first half of the year and plan to follow up by adding a new category with multiple products in the Fall. In addition to our new product launches our R&D team is working to reduce our reliance on plastic packaging. This continues to be a very challenging, but important initiative. Our supply chain focuses this year are on efficiency. We spent the last few years stabilizing our supply chain network. In 2024, we are working to improve speed, reduce costs and minimize risk.”

“Pet parents are becoming more and more educated on pet wellness,” Lunneborg said. “This category will keep growing as education increases. We believe the pet nutrition and supplement market will continue to boom. Pet parents are focused on finding the most nutritious food and beneficial supplements for their pets. We plan to innovate in this space while supporting our core dental health category.”

“In the dental chew category, we’ve got some product innovation in the pipeline, including tasty treats that have ridges that help clean dogs’ teeth.

Building upon our existing category of dental treats—Hive Chews and Hive

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Chew Sticks—we are expanding the category while sticking with our successful launch of vegetarian, made-in-the-USA, non-GMO Project Verified dog treats.

We are also focusing on expanding distribution in the US and Canada and supporting our current customers,” said Melissa Rappaport Schifman Co-Founder, Project Hive Pet Company. “Dental health for dogs is essential, and we are seeing more growth and innovation in this category. As in the past, we expect pet trends to follow human trends. We think that non-GMO, vegetarian and better-for-the-planet dog treats will continue to gain traction in the marketplace. We are also launching more treats that work with our toys. Our Chews Sticks fit snugly into our Hive Toys, and we just launched our delicious peanut butter pouch that also works with our toys by squeezing it onto the back of the Hive Disc—which doubles as a Lick Mat—or into the Hive Toy cavities.”

“At TEEF, in Q3 of 2023, we updated our water additives with more sustainable packaging, offering a reusable jar in our dental kits with the option to reorder just the refill powder packets at a discount. This year our goal is to continue that initiative with our new product rollouts, as well,” said VP of Business Development, Lindsey Campbell at TEEF. “Our focus for 2024 is on growing our revenue and expanding from our current product offerings into treats and chews, which will allow us to enter the $9 billion market that those products occupy in the pet space. Data from SPINS shows that 73 percent of Gen Zers and 70 percent of Millennials want more natural and organic products for their pets. Many dental products have historically had chemicals in their ingredient list that are not actually safe for daily consumption. I anticipate that many companies will lean a bit more holistic in their approach to dental care going forward. The ‘humanization’ of

pets doesn’t stop at pampering, it also translates into pet owners being more conscientious about overall health and wellness choices. As a pet owner, I wouldn’t give my dog Stella anything that I wouldn’t use or consume myself.”

Looking into the challenges many have been facing recently, these leading companies have been able to learn from the past to benefit them in the present and future. “Our supply chain is healthier than it's ever been,” said Lunneborg.

“We learned a lot from the crazy Covid supply chain event. It's crucial to maintain constant communication between all partners in your supply chain. We press for daily communication and early detection of any shortages or issues. In 2024, we are making additional investments to dramatically reduce transit time from manufacturers. This improved efficiency and reduced costs will allow us to spend more money on other areas of our business that are customer-facing.”

“As far as we’re concerned at TEEF, the supply chain has made a full recovery from where it was only one year ago,” said Campbell. “We’ve been fortunate so far to have a product that is a plant-derived, prebiotic supplement which doesn’t contain animal by-products or the like. However, we would be kidding ourselves if we didn’t anticipate those issues to arise when sourcing high-protein ingredients for our upcoming treats and chews product rollouts this year. It’s important to remind yourself of the ‘why’ when facing these challenges that arise in this business.

Our love for animals never waivers. Creating products that contribute toward maximizing their health and longevity make it all worthwhile.”

“The supply chain is improving compared to two years ago. However, cost increases and availability remain chalr Cont'd on Pg. 34

Freshen breath fast. Fight plaque and tartar. Live your best life together.

First Take: Oral Care r From Pg. 32 lenging. We have great manufacturing partners that work with us, and we are deepening these partnerships. Being a small, nimble company and having relationships in the United States allow us to pivot more quickly and easily, so if there are more international issues, we should be able to weather them! We think pets right now are so crucial for people’s happiness and well-being, and Project Hive Pet Company is working hard to provide healthy, engaging products for dogs!” said Schifman.

Pet King Brands recently mentioned the company has been focused on education and raising awareness for its products. “To create incremental growth both within the oral care category and for our retail partners, we’ve been focused on showing up as an educational resource for pet parents,” Debra Decker, Director of Marketing at Pet King Brands. “As our pet’s health ally, there are many things we can do to help them to have healthy ears, skin and mouths. Pet King Brands provide innovative information about pet health and tips on some good practices when using our enzyme-based pet health products.

We are a trusted brand our customers, retailers and pet healthcare providers alike turn to for high-quality products and pet health information.”

Category leader Loving Pet Products has been able to maintain its leadership status in the category through manufacturing in the US. “It has always been and continues to be of utmost importance that Loving Pets is at the forefront of US manufacturing and that our facility, team and company were positioned to deliver Made-in-the-US treats before everyone made that switch,” said Eric Abbey, President and Founder. “Our distributors and retailers greatly value the fact that Loving Pets continues to expand our manufacturing and production capabilities. Our consistent investments in technology and expansion of manufacturing equipment and capabilities set Loving Pets apart from the pack.”

Reflecting on 2023, “Long-term chews and dental solution-oriented products continue to be in greater demand, so we can contribute this success PG 34 / PET I N S I G H T

“We have multiple areas of focus to continue our growth in 2024.

Our product development team has been working for the last two years on new innovations. In 2024, we will be launching two to three new products in the first half of the year and plan to follow up by adding a new category with multiple products in the Fall.

In addition to our new product launches our R&D team is working to reduce our reliance on plastic packaging. This continues to be a very challenging, but important initiative. Our supply chain focuses this year are on efficiency.

We spent the last few years stabilizing our supply chain network. In 2024, we are working to improve speed, reduce costs and minimize risk. Pet parents are becoming more and more educated on pet wellness. This category will keep growing as education increases. We believe the pet nutrition and supplement market will continue to boom.”

— Tom Lunneborg, COO, Oxyfresh Worldwide to closely watching and following human trends and listening to our retail partners' feedback,” said Abbey in a previous interview. “Today's pet parents are looking for dental treats and chews that have limited ingredients but also that showcase where the ingredients are made and sourced, because today's pet parent wants to know exactly what is inside and where it's from—very important! Since the human pet parent is making the purchasing decision, retailers want to offer a variety of dental

solutions that their customers can easily relate to and understand the ingredients and benefits all at a price they can afford. Loving Pets has always been founded on the belief that high quality does not have to mean expensive, and continues this mission by offering hundreds of treats and chews that are delicious and promote canine health from the inside-out.”

The oral care category has continued to expand and tremendously grow through the raised awareness of the category’s importance, but also through the innovation companies like Pure and Natural Pet are striving to bring consumers to make it easier to care for their pets. “Through diligent research and testing we are very proud to be launching our Dental Wipe [which attendees will be able to see at Global Pet Expo],” said President Brian Taus. “The dental category is exploding, not everyone has a pet that is willing to allow their teeth to be brushed, a wipe is the ideal product to see first-hand if there is a loose tooth or if the pet’s gums are swollen or even bleeding. Identifying dental issues early can be a difference in maintaining overall health and enjoying a long life.

The great thing about our new wipe will is not only can it be used with dogs, but it is safe for cats too.”

“One trend that we see continuing is the independent pet retailer focus and the pet consumer focus on ingredients," Taus continued. "People want to know only know what ingredients they are using with their pet but what are the ingredient benefits. Consumers are reading the labels now more than ever; they do research and they ask questions. This is perfect for Pure and Natural Pet as the more someone learns about our company the more, they come to love us,” Taus said. “In terms of category growth, we see the oral care and ear care offerings continue to be leading health and wellness product offerings. Consumers are more proactive with their pet's health and welfare and oral care and ear car are continuing to drive product innovation. Pure and Natural Pet offers a number of USDA Certified Organic items in both categories—Canine Tooth Gels, Dental Kits and a Dental Spray all help to not only freshen breath but to reduce plaque and tartar.”

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First Take ID Tags

Key Takeaways • Dependability of Engraved Pet Tags: Engraved pet tags remain a steadfast option for pet owners, both when used in conjunction with advanced technologies and without—as some cases require. In case of technology failure, engraved ID tags with owner information offer added insurance for the safe return of lost pets.

L

ooking back at what worked and what helped perpetuate success is often a good place to start when assessing forward-looking goals for the new year. As 2024 commences, there is a lot on the horizon when it comes to ID tags and the companies preserving new developments and growth.

“In the latter part of 2023, we have designed new ID tags with a strong pop of inspiration, as well as a new collection of leashes, featuring more minimalistic traits with new variations of colors and patterns within existing collections,” said COO Ricardo Nottola for MyFamily USA. “We will introduce these in 2024 at the upcoming trade shows, and we are confident that once again, they will be unique in the eyes of retailers and pet lovers alike. 2024 will also mark another expansion of our company with the opening of a new production facility in Valenza, Italy where we produce every detail of our accessories. This indicates that MyFamily is becoming increasingly important in the pet industry, and for better organization and communication with the numerous customers scattered around the world, expansion is essential. This focuses on sustainable production, not only on the environment but also on the work of our collaborators. We are always at the forefront of environmental initiatives, as evident by our stance in favor of the green cause and our participation in the 1% for the Planet program. We have also dedicated the recent Earth line of ID tags, displaying the globe in all its facets. In the new year, there will also be a strong emphasis on opening more MyFamily flagship stores in the most important airports and railway hubs worldwide.” iMarc Engraving Systems has remained focused on what the company has always done: creating pet ID tags and related products. “Whether it’s engraved pet ID tags, luggage tags, a collar or leash buckle, military ID tags

PG 36 / PET I N S I G H T

or equine plates, all of which are easily personalized in our system—and more—our goal is to give our retailers the ability to offer an expanded personalized product line to their customer base,” said Mark de Guzman, Marketing Manager with iMarc Engraving Systems. “iMARC also offers more than 2,000 pet tag designs that appeal to pet owners' tastes and their four-legged family members' personalities. Also, through our different marketing channels, we try to educate pet parents on the importance of pet ID tags to ensure their pet’s safety and swift return home when lost. The iMARC Pet Tag Engraver is a full-featured compact machine that fits on most countertops. Its space-saving size is favored by small pet stores that need to compete with their big box counterparts. It’s important that they have pertinent products that will draw in consumers from the larger name-brand pet stores and add to their customer base. This strategy of offering fresh new tag designs and other pet ID products combined with a full-featured engraving machine, helps our retail partners generate revenue. It also spreads the benefits of using a pet ID tag and promotes industry growth.”

Within an ever-changing industry, there are always new trends that surface and fuel the category to develop innovative and/or groundbreaking progression and products.

“Our brand is undergoing a unique evolution towards fashion, and we are exploring new product opportunities,” said Nottola. “Many fashion companies have recently launched pet accessories, highlighting the contrast between these two markets. Always striving for a balance between comfort and the aesthetic expression of the personality of our four-legged friends, we will soon introduce the MyFamily Apparel line featuring sweaters entirely made in Italy. Our goal is to offer a complete outfit for pets,

along with our existing accessories.

The debut of our raincoat, a versatile garment suitable for all seasons and weather conditions, will also be part of this new collection. This production marks our entry into a completely new market. We are very excited about this development and optimistic about the outcomes!”

“After the numerous slowdowns that occurred due to the pandemic, we can now express that we have resumed a normal pace. This, of course, is highly positive because it allows us to process orders promptly and enhances our customer satisfaction. Therefore, in 2024, we feel confident that everything will be functioning smoothly. “We are confident that we will have assurances on the raw materials front due to our growing global recognition, along with our significant expansion planned in the coming months, including e-commerce, flagship stores, and retailers,” said Nottola.

“Existing technologies such as GPS and Bluetooth have been very attractive to pet owners," de Guzman said. "Both allow you to locate your furry friend in real-time with a cell phone app and other devices. However, due to power and signal requirements, they do have their limitations. Many consumers use iMARC pet tags in conjunction with these technologies. If the technology fails for some reason or another, an iMARC tag with owner information can offer added insurance that their lost pet will find its way home when found. A quick and safe return is the ultimate purpose of a pet ID tag, and the dependability of an engraved iMARC pet tag has been proven time and time again. Much like the iMARC Engraving Machine, [it is] a highly dependable system that meets the needs of retailers. Its compact size allows the iMARC to fit comfortably on most countertops making it ideal for storefronts with minimal space."

First Take Litter

Key Takeaways • Balancing Performance and Sustainability: Recent innovations address issues related to cat behavior, aiming to keep felines in homes and reduce shelter surrenders.

• Functionality, Sustainability, and Eco-Friendly Initiatives: 1) The functionality of litter products, including odor control and ease of maintenance, is a driving factor in sales, with an emphasis on attracting cats to use the litter box effectively.

2) Industry-wide, there is ripe opportunity to test and experiment with a wide range of natural substrates that fulfill pet owners’ preference for sustainable and effective litter.

T

he challenge for litter companies continues to be balancing the demand for performance with sustainability and if possible, biodegradability. For a category that is ultimately about waste management, some attention-grabbing innovation and functionality has come to market in recent years with the ultimate goal of helping keep felines homed and out of shelters.

Dr. Elsey’s goals for 2024 revolve around education, starting with the company’s origin story. Dr. Elsey was and is a practicing veterinarian running a feline-only practice in Denver, CO, said Director of Marketing Mat Brost. “Dr. Elsey saw the biggest problem he was coming across was inappropriate elimination. The cats weren’t using the litter box; they were making messes throughout the house. He saw an opportunity there to come up with a formulation that would attract cats to the litter box. He was seeing these huge numbers of cats get surrendered to shelters and euthanized and so he wanted to do something about it. That’s where Cat Attract came along. He found this blend of grasses and other ingredients to mix in. It’s extremely effective. You can look on Amazon or Chewy and read reviews. There’s thousands of reviews out there saying how Cat Attract saved a cat from being given up to a shelter. It’s really amazing and so after that came along, he really focused on solution-based litters. He worked on solutions to a problem that cat owners are having and out of that came the Kitten Attract, a kitten litter that is more comfortable for kittens to step on, and ultimately, he determined that there was a need for high-quality crystal litter,” he said.

This year, “[We want to] just make people aware about our solution-based

PG 38 / PET I N S I G H T

products,” said Brost. “Hopefully save more cats that are going potty outside the litter box. Really that’s why we’re here. Further reduce cat diabetes and obesity with our food; enhancing the lives of cats and their owners is our ultimate goal. Obviously, we would like to grow and expand and all of that, but it’s all secondary to happy cats and happy cat owners.”

This kind of functionality—not only to get the feline to use the litter box but also to manage the maintenance and cleanup of the setup—is what is driving sales. “Odor control has been, and will always be, the No. 1 consideration for consumers,” Ken Wilks, VP of Sales and Marketing for Boxiecat said previously. “We've just scratched the surface in this area with our 40-day odor control guarantee on our probiotic litters.

It seems simple to say it, but the more attractive a litter is for cats, the more likely they are to use the litter box. Recent statistics estimate about one-third of cats surrendered to shelters are due to litter box use issues. We launched our Glo Natural Attractions cat litter to help save some of these cats’ lives.”

Eco-Shell, Inc. makers of the Naturally Fresh brand, similarly had cause for celebration this year with a new product. “After more than four years of research and collaboration with world-renowned academic leaders, we're excited to share our newest product and the first mood-boosting litter created using Givaudan MoodScentz+ technology, Harmony Lavender & Bamboo Clumping Litter,” Helen Cantrell, Director of Sales and Marketing said last fall. “It's not your ordinary scented litter, but one that enhances the natural calming properties of the lavender and bamboo essential oils, leaving homes

smelling fresh and clean while helping reduce potential restlessness for cats.

Announced at SuperZoo, Harmony will be available at retailers in the new year.

We're looking forward to kicking off the year with this launch and building on some great momentum from 2023.”

Among the many categories in which it operates, Pioneer Pet Products is looking to 2024 as an opportunity to focus on its consumable cat litter business, said Director of Sales, Nancy Schmid. “We continue to see significant growth opportunities and partnerships as we expand our natural litter offering.

Our patented process allows us a lot of flexibility with formulations. We continue to work in product development for what’s the next best thing. Sustainability features both in product and packaging are key components in our future development,” she said.

Schmid explained, “Sustainability projects are important for us and our retail partners. [We are] continuing product development in natural substrates that are renewable and biodegradable. Our main focus for 2024 in the litter category is earth friendly. You will see that in our products, marketing and packaging. We continue to provide healthy products for our furry friends and their humans.”

While sustainability provides a handy target for litter makers, Next Gen isn’t rushing out of the gate with new products without careful research and consideration, Director of Marketing Janice Yamamoto with Next Gen International Corp. said earlier. “Next Gen has always optimized for releasing thoughtfully planned products slowly rather than optimizing for trends and innovating quickly,” she said. The company is no r Cont'd on Pg. 40

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First Take: Litter r From Pg. 38 stranger to eco-friendly solutions. “Next Gen was one of the first sustainable cat litters in the market way back in 2004.

Not only is our litter made from sustainably sourced materials, but did you know we use upcycled ‘scrap’ material to manufacture our product?”

Petfive, makers of the Sustainably Yours brand, dedicated a large portion of 2023 to improving public education not just on sustainable litter but on what Sustainably Yours can offer a feline household. “For the last months, we’ve partnered with one of the most successful and creative marketing agencies in the US, Godfrey Dadich Partners, known for their work for National Geographic, Microsoft, Nike, Netflix, and many other successful brands globally,” said Head of Marketing Luana Francischini last year.

“This strategic work results in a brand update, highlighting even more Sustainably Yours’s high performance and innovative aspects that come together with our commitment of always putting cats first, respecting nature and delivering the best experience to cat parents.”

Part of respecting nature is not putting more plastics out into the environment. “We are also committed to launching The Ideal Scoop, created with upcycled plastic,” Francischini said. “In addition to its clump pocket, the scoop has tiny holes to pick up even the smallest particles, leaving a spotless litter box for every cat to feel comfortable in.

The dark color of the scoop is a natural result of using blended post-consumer recycled plastics.”

At Sustainably Yours, environmental impact remains a top priority, said Francischini. “We are glad to lead a movement and inspire others when it comes to cat litter. Our plant-based line avoids harmful mineral extraction processes.

Instead of creating more waste, our litter is returned back to the ground, creating a closed-loop production. Looking at our manufacturing process; we use biomass to power key parts of our production line. Additionally, we use monocomponent packaging, which increases its recyclability, and [we] will soon add bioplastic to the blend.”

Naturally Fresh’s use of walnut shells helps to illustrate how sustainability is also at the core of its products and PG 40 / PET I N S I G H T

at the heart of the brand, said Cantrell.

“We're proud of all our efforts towards sustainability, such as producing our litter in solar-powered facilities, planting tens of thousands of walnut trees per year, turning a food byproduct into superior cat litter and more. Looking to the upcoming year, we plan to make significant strides towards fully recyclable packaging for all Naturally Fresh products. This will bring our sustainability story full circle,” she said.

Dofu Cat is similarly looking forward to further eco-friendly initiatives with its product innovation. “The litter category is experiencing a dynamic shift, driven by the growing emphasis on sustainability and eco-friendliness,” said General Manager Marlene Ee. “Pet owners are increasingly mindful of their environmental impact, which is reshaping the demand for natural alternatives in the litter market. As we see movement toward eco-conscious solutions, pushing the industry to innovate further, we will see greater premiumization of pet care essentials.”

Consequently, 2024 holds much potential for Dofu Cat. “We have three great natural litters that we are excited to make widely and easily available,” said Ee. “Our focus for the coming year revolves around simplifying the cat litter experience by blending innovation, sustainability and practicality. We're dedicated to advancing our sustainability initiatives, enhancing supply chain logistics and exploring new avenues for expansion. Expect more litter developments in the year as we strive to deliver eco-conscious solutions that cater to the evolving demands of pet parents.”

Litter leaders sustain the power of brand recognition both with their innovations but also through ensuring reliability for their retail partners in the form of available product on the shelf.

“Our current supply chain is strong,” said Schmid with Pioneer Pet Products. “This has been a huge focus for us throughout the last year. In 2023, we expanded our litter manufacturing and warehousing space in preparation for our continued growth. We have excellent logistics partners and feel confident that we can continue to handle any new business 2024 shall bring. We are excited for what 2024 has in store for

Pioneer Pet.” Ee with Dofu Cat similarly reports, “Currently, our supply chain remains stable, bolstered by strategic partnerships and streamlined logistics.”

Retailer and sales support also help fortify effective relationships. “Sustainably Yours has exclusively designed a demo kit to enable shoppers to test our cat litter on the spot,” said Francischini.

“This is a complimentary display that fits most shelves and increases conversion rates because once a cat lover sees firsthand how fast our litter clumps and how it is free of dust, they will want to bring Sustainably Yours home. We are constantly talking to retailers to see how we can improve it even more.”

Homing in on supporting retailers— and pet specialty stores in particular— is a priority for litter makers given the education and trial that needs to happen in converting new customers to a new way of thinking about cat litter.

“Independent pet specialty stores have less than a 5 percent share of the total litter category in the US,” said Wilks with Boxiecat. “This represents a huge opportunity for premium cat litter manufacturers, specialty stores and consumers to trade up to the benefits of premium cat litter.”

The high number of feline adoptions recently is giving litter manufacturers a leg up in driving sales. “The primary piece that is driving overall growth is the increase in adoptions,” said Brost with Dr. Elsey’s. “Not just adoptions but the support these shelters are receiving.

We support hundreds of different shelters across the country with litter donations and monetary donations. We do a lot for a lot of different shelters.”

Luckily, the industry makes room for pet owners to test the waters and decide what works best for them. “Just like with pet food several decades ago, most consumers today assume that all cat litter is more or less equal,” Wilks said.

“Our most successful retail partners have learned to differentiate premium litter performance in their omnichannel marketing. An opportunity exists for pet specialty stores to demonstrate the higher performance of litters in a manner similar to how they raised the bar on pet food."

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First Take Plush Toys Key Takeaways • Continuous Innovation and Unique Designs: Ongoing efforts focus on introducing new variations and themes including products like snuffle mats and lifestyle/outdoor gear.

• Strategic Marketing and Collaboration: Manufacturers are testing new marketing strategies to connect with shoppers and enhance brand visibility.

• Embracing Sustainability Trends and Expanding Offerings: Industry leaders are touting their use of recycled materials and eco-friendly practices to match facets that pet owners are seeking in their purchases.

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eaders in the plush toys category continue to bring unique designs and toys that pets and their owners can enjoy together. With the new year, these manufacturers have much planned with product launches and expansions.

“We've got some pretty exciting things happening in different corners of our business!” Will Chen, CEO and Founder of P.L.A.Y. (Pet Lifestyle and You). “On the logistics front, we just wrapped up the move to our new domestic warehouses, which is going to supercharge how we handle orders—more efficiency and reliability for our awesome customers. And we are not stopping there.

Plans are in the works to expand and refine our distribution channels. For instance, we are upgrading the B2B buying experience with a brand-new wholesale ordering platform.”

“But let's talk about what really gets us buzzing—new products!” said Chen.

“We are coming up with fresh variations and themes for fan favorites such as plush toys and bedding. Plus, we are diving into cool new categories like snuffle mats and lifestyle/outdoor gear.

I can’t share too much here but rest assured we have got a treasure trove of exciting newness lined up for the next couple of years and beyond.”

“On the marketing side, we are always testing out new ways to connect with shoppers and expand our fan base. After some awesome collabs with HyperX, Ellen DeGeneres and Earth Rated, we're keeping the momentum going. Right now, we are cooking up something special with one of America's most recognized F&B brands—just the start of more cool partnerships in the pipeline," Chen said.

“At Playology, our mission to improve pets' lives through meaningful innovation drives everything we do,” said

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Chris Brown CMO Logical Brands. “Pet parents turn to us because they want to enhance the lives of their furry friends, and it’s a top priority for us to deliver on that with our Happiness Guarantee across the Playology, Grrreen and Hound2O portfolios. We are constantly evolving our offerings to provide toys that engage and stimulate pets, and you can expect to see more from us in 2024.

Exciting things are on the horizon - stay tuned!”

“In 2024, we are introducing more than 100 new items,” said Jonathan Zelinger, President of Ethical Products.

“We will be focusing on expanding our Love The Earth line of toys, which is a line of sustainable, earth friendly plush dog and cat toys made from recycled water bottles. We will also be introducing a full line of plush toys called Soothers which feature lavender, pulsating heartbeats and other properties proven to calm dogs. Pet anxiety is a growing problem, and we hope to tackle and mitigate that concern by introducing these novel toys to the market.”

As trends play a huge role in the trajectory of this category, leaders are pinpointing and using these trends to strategize their next steps. “In this dynamic and ever-expanding industry, we foresee a couple of key trends that will significantly influence the direction of the category,” said Chen. “First and foremost, sustainability is taking center stage, and we're all in. Aside from the sizable recycling impact we are making with our PlanetFill which is made from 100 percent recycled PET, we're ramping up our efforts by transitioning the majority of our packaging materials to FSC-certified paper. Additional contributors are excited about our strengthened partnership with EcoCart, where a portion of our web store sales proceeds

contributes to reforestation efforts. We recognize that today's shoppers are increasingly conscious of their environmental impact, and we want to meet those expectations head-on.”

“As the industry continues to grow, we anticipate heightened competition from both established players and newcomers,” he continued. “Rather than shying away from it, we wholeheartedly welcome and embrace the challenge. We believe that healthy competition fuels innovation and drives continuous improvement across various facets of our business. This competitive landscape motivates us to stay at the forefront, consistently enhancing our products and ensuring we deliver the best possible features, value and experience to our customers. It's an exciting time, and we're ready to thrive in this ever-evolving environment.”

“In navigating the shifting tides of this ever-changing and expanding industry, I feel that it’s also important for us to stay grounded in our mission and core values. At the heart of our commitment is the belief in delivering the best products—ones that boast top-notch quality, sustainability and impeccable design with outstanding durability. As a premium brand, we understand that being true to our identity means we can't be everything to everyone. While we remain attuned to macroeconomic conditions and evolving shopper/buyer preferences, we also often emphasize the importance of discipline and consistency. This steadfast approach ensures that as we adapt to new developments and trends, we maintain the integrity of our brand and the trust of our valued customers. It's a delicate balance but one that guides us in our journey through this dynamic landscape,” exr Cont'd on Pg. 44

Toys made for summer days.

First Take: Plush Toys r From Pg. 42 plained Chen.

The plush toys category has a little more creative freedom than other toy categories, and Fringe Studios has been demonstrating this through the company’s ample toy choices.

“2024 is going to be an exciting year for PetShop by Fringe Studio. We’re targeting newness across pet toys and all the other categories of pet products we currently offer,” said Jennifer Rosenberger, Director of Product Management at Fringe Studio. “We’re pushing our team to offer new product categories as well as expanding on our iconic and bestsellers to offer retailers what they’re looking for and keep this pet toy category looking fresh. Our sales team is working on new display options to help give retailers resources if they don’t have available product space, and our marketing team continues to offer sales content to help retailers have available tools for e-comm postings, social media and/or marketing postings.”

“We’re still seeing a growing trend on earth-friendly, durable and interactive dog toys within the plush toy market.

We’re also still seeing a lot of excitement based on unique designs that are fun and stand out from the older more traditional toys. Customers are demanding more new, fun and functional toys that show a great value. As a leader in the pet toy space, we’re excited to introduce about 40 new toys at Global Pet Expo in March and have more newness on the horizon for SuperZoo,” Rosenberger continued.

Having established quality leadership efforts and practices is what has continued to set these leaders apart within the category.

“Plush sales in the human toy industry grew by 4 percent in 2023 while children’s toys in general fell 8 percent in the same period,” said Zelinger with Ethical Products. “The increase in plush sales was attributed to the consumers desire for comfort and security. We expect that plush dog and cat toys in the pet market will outpace the sales of other pet toys for the same reasons. Our supply chain is fully functional and back to where it was pre-Covid. Our inventory is well balanced, and our shelves PG 44 / PET I N S I G H T

“There are several unique characteristics and opportunities that come with operating in pet specialty retail. Manufacturers in the pet specialty retail channel have a niche market to target, with opportunities for premium and specialized products, expertise-driven sales and the ability to cater to the unique needs and preferences of pet owners. While other retail channels offer their own advantages, such as convenience and broad reach, the pet specialty channel is distinguished by its focus on quality and specialty products for pet lovers. There are unique opportunities that are provided when working in the pet specialty retail channel: • Niche Product Focus: Pet specialty stores have the ability to curate and showcase a wide range of niche or specialty pet products. This includes premium and specialized pet food, organic and natural pet products, and unique, high-quality pet toys and accessories. Manufacturers can cater to specific dietary, lifestyle, and health needs of pets.

• Expertise and Customer Service: Pet specialty retailers often employ knowledgeable staff who can provide expert advice on pet care.

Manufacturers can work closely with these retailers to educate staff and consumers about their products, leading to better-informed purchasing decisions.

• Targeted Marketing: Manufacturers can craft marketing campaigns that specifically target pet owners who are more likely to frequent pet specialty stores. These consumers are often passionate about their pets and willing to invest in high-quality products.”

— Leslie Yellin, evp, Multipet International

are well stocked in anticipation of a robust 2024. We are keeping an eye on the current wave of respiratory illness spreading across Asia and hope it does not cause a global pandemic and impact the US population and the economy the way Covid impacted us.”

“Recent consumer behavior trends in the US and abroad show consumers spend less on discretionary purchases.

For us, that means there’s more competition for every dollar our consumers spend and an additional incentive to innovate our offerings constantly. In this economic environment, we want to ensure our toys provide more significant value for pet parents. We deliver on that with durability, higher rates of engagement and the ability to strengthen the relationship between pet and parent,” said Brown with Playology. “Shopping habits have also evolved to include the places and ways that people shop. Consumers are increasingly moving away from the black-and-white paradigm of online vs. in-store shopping as many move seamlessly between the two, depending on their current needs. That means working with retail partners is paramount to helping us serve all shoppers. Like much of the category, our supply chain is global and is subject to the same fluctuations exacerbated during the Covid pandemic: volatile commodity prices, unpredictable freight costs and inventory challenges, to name a few.

It’s hard to predict when there will be a disruption to any one of these factors, but we—and I believe the industry as a whole—are making strides to return inventory and supply chain metrics back to pre-Covid norms, while minimizing the impact to consumers.”

“Managing the supply chain has been a challenging puzzle for many businesses, and we've had our share of twists and turns since the pandemic hit. The good news for us is we own a good portion of our manufacturing. That vertical integration meant we could keep the goods flowing even when there was turbulence in the supply chain for many businesses over the past couple of years,” said Chen with P.L.A.Y. “However, our growth had been hamstrung in the last two years by our domestic third-party logistics (3PL) partner as they struggled through a myriad of problems and malpractices and our fulfillment was affected from time to time.

Thankfully, that chapter is now behind us, and we are eagerly anticipating the positive developments that the new year holds, particularly with our new warehouses getting up to full speed.

The lessons learned from past experiences have positioned us for a more resilient and promising future.”

First Take

Fish-Based Treats Key Takeaways

• Companies recognize the importance of education in the category's growth, particularly for pet owners unaware of fish-based treats and their nutrient-dense benefits.

• Manufacturers are focused on delivering not only high-quality fish-based treats but also enhancing the overall shopping experience for pet owners.

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eaders within the fish-based treats space are committed to delivering upon retail partners’ and pet owners’ demands and expectations of not only the fish-based treats category but their shopping experience as well. Making connections with pet owners and bridging the gap between pet owners who are unaware of fish-based treats and their nutrient-dense impacts is another point of focus for suppliers who realize education is a key component of category growth.

“In 2024, we plan to expand our line with a couple of new treats that maintain our ‘cleanest label’ philosophy of 100 percent natural, single ingredient wild fish treats,” said Pacific 21 Mercantile Owner Lance Yamazaki. “The plan is to add another fish species for one of our new treats and to come up with another innovative treat utilizing another fish ‘part’ much like we did in 2003 when we introduced salmon skin as an alternative chew. Another focus will be in further improving our production capabilities with the continuation from the past year in the investment to enhance our automated systems.”

This year, “Northwest Naturals (NWN) will focus on giving the retailer and consumer what they want,” said Director of Sales and Marketing Amy Snell. “We get asked often for different sizes or shapes in our recipes, so our plan is to provide them with their requests. So instead of creating new treats or recipes we will be expanding on what we already provide.”

“As pioneers in the raw pet nutrition industry, our focus remains steadfast on elevating the well-being of dogs and cats while aligning our practices with a sustainable future,” said Vital Essentials CCO Nick Ebert. “Our primary focus falls into one of three categories; new productdevelopment, sustainability initiatives and production/facility expansion. With new product development,

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our commitment to pushing the boundaries of pet nutrition continues with a robust pipeline of innovative products that solves both consumer and retailer needs. Demand is growing for new and exciting innovation and Vital Essentials will continue to be at the forefront of enhancing our portfolio and redefining the space for pets and their humans.”

“Regarding our current sustainability Initiatives, we are embracing our responsibility towards positively impacting our planet and the world around us,” Ebert continued. “We continue to enhance sustainability across our operations and production process through leveraging eco-friendly sourcing to optimizing package and case pack solutions to minimize the number of daily trucks we have on the road.”

“Our business is growing and so are the resources at our disposal to continue our industry leading fill rates and production quality,” he added. “A critical component of a greener tomorrow is our New Greenfield facility that is being built. This facility was crafted to be one of the most environmentally-friendly manufacturing facilities in Wisconsin and will increase our production capacity by more than 235,000 square feet from what we operate in today.”

“Reflecting on 2023, it was a positive year for Icelandic+,” said VP of Product Development and Brand Innovation Kersti Lee. “We experienced significant growth propelled by several innovative product launches, the expansion of our sales team and enhancements to our supply chain. Looking ahead to 2024, our focus is on building upon the momentum generated in the previous year with a key strategic objective of expanding into new markets.”

“We’re enthusiastic about the opportunity to introduce our brand to a new audience of pet owners who may not have experienced the quality and uniqueness of our products before,” Lee

continued. “Our experience has shown that once a customer learns our story and experiences the joy our treats and chews bring to their pets, a true brand connection is made. Through establishing strategic partnerships in new markets we plan to bring this experience to more pets throughout the world and continue to grow the brand.”

NWN maintains a positive outlook on the coming year in terms of supply chain and production of fish-based treats. “NWN has long standing relationships—some more than 20 years— with its suppliers,” Snell said. “We do not foresee any supply issues with any of our fish products at this time.”

“Our supply chain continues to be in a very solid position as we enter 2024,” Ebert said. “Vital Essentials has a history of proficiency in the meat/protein raw materials space and with our industry leading relationships, we have locked in purchase commitments through most of 2024 with our key partners. It is critical to understand your supply chain, and our sustainability harvested proteins are carefully selected and follow a rigorous standard of care and control through the entire production process to develop our best-in-class products.”

Pacific 21 entered the fish-based treats category with their Salmon Snacks for dogs in 1996. “Since then the category has really grown,” Yamazaki said. “I remember doing trade shows early on and people questioning the concept of fish for your dogs. We've maintained since day one of providing natural, minimally processed—in Pacific 21’s case, dried—single ingredient treats made with wild fish. The trend not only for this category but for all food and treat categories will have companies focusing on either pushing ‘real’ foods and treats that are unprocessed, single ingredient and 100 percent natural or coming up with the healthiest ‘imitation/processed’ food and treats."

VA N LU E E W PA CK S

LEADING THE FISH BASED PET TREAT CATEGORY SINCE 1996.

From the beginning, we’ve made all of our products with just one simple ingredient: 100% wild fish. Whether it’s Salmon, Whiting or Herring, that’s all you’ll ever find in our premium pet treats. No additives, no preservatives and no by-products or fillers.

PACIFIC MERCANTILE 21 LTD. #145 – 11960 Hammersmith Way Richmond, BC, Canada V7A 5C9 t. 604.272.9100 f. 604.272.0992 e. info@snack21treats.com snack21treats.com

First Take

Milk Substitutes Key Takeaways

• Surging Interest in Milk Substitutes: 1) Caregivers who recognize the nutritional benefits and safety of milk substitutes for young animals are helping to drive category growth.

2) This reflects a broader shift in consumer awareness and preferences for specialized pet nutrition.

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he milk substitutes category is gaining momentum as more animal caregivers become aware of the nutrient-dense and safe options that are available to young animals.

“2024 is shaping up to be an exciting year for PetAg!” said Gina Devaney, Head of Sales for Pet-Ag. “We have been working diligently to ramp up our product offering over the next several years and expand our reach in different pet categories. It’s humbling to be the leader of the milk replacer category for so many years as it’s such a pivotal time in the kitten or puppies’ life, and for decades, we have been the most trusted brand out there. Any new products we develop will support our commitment to providing pets with the best products possible to support their growth and development.”

Leadership at Pet-Ag has been noticing increasing demand from pet owners wanting to support their pets through all life stages. “We are committed to providing high-quality products to support this requirement,” Devaney said.

“Our ongoing dedication is to provide the best possible solutions for pet nutrition and health needs at all stages and are constantly researching areas we can provide products to the marketplace.”

Compana Pet Brands has successfully served the pet industry by offering a broad swath of products to serve a diverse group of caregivers. “No other pet company serves the broad spectrum of pets the way Compana does,” CEO Greg Pearson previously said. “We have a diverse portfolio of unique brands consumers love and trust, and our ability to provide distinct care and wellness experiences for pets from barnyard to backyard—furry and feathered!— throughout their lifespans is unique in the industry. Our rate of acquisitions also sets us apart. We’ve successfully integrated brands and talent into our portfolio with 15 acquisitions in the last

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10 years. This has been a huge growth driver for us but wouldn’t have been possible if not for the talented people we’ve hired and acquired to support this growth. Finally, our mission to ‘Nurture What You Love’ extends to community and environment through responsible sourcing, healthy and nutritious products, eco-friendly and recyclable packaging, greener operations and outreach.”

“We have a diverse portfolio of brands that serve a broad spectrum of companion pets,” Pearson continued.

“At their core, they all advance our mission of ‘Nurturing What You Love.’ They do so, however, in many different ways.

Whether it’s a great treat for your dog from our Fruitables brand, a wellness supplement from Nutri-Vet or Timothy hay for your small animal from Oxbow, we have a unique brand and product for your pets. The diversity of our brands allows us to effectively serve pet parents across channels, price points and pet categories.”

Pet-Ag has been able to bypass many of the supply chain snarls by conducting most of its production in-house.

“We manufacture all our milk replacer liquids and powders in house, and our operations team does an excellent job at making sure we have the right ingredients and packaging supplies needed to make sure we can deliver a quality product every time to our customers,” Devaney said. “We are in a good place, on top of production while remaining prepared to implement alternative materials and manufacturing methods, if necessary, to meet our customers’ needs. At this time, we feel confident in our ability to support our customer purchasing requirements.”

Leaders in the milk substitutes category remained productive throughout 2023 and that drive and momentum is expected to carry over into this year. Demonstrating this, Compana Pet

Brands markedly launched a Technical Center of Excellence. “As we look to refocus our business on becoming a global leader in pet care and nutrition, it is important that we integrate technical expertise into all facets of our business,” Pearson said. “Our technical team will expand our research program to ensure that we are formulating and developing products using the best ingredients to strengthen the nutritional health and well-being of our pets. In addition to the scientific research, which involves identifying, vetting and communicating novel ingredients, applications and technologies, the team will accelerate innovation, which is a cornerstone of the company’s growth plan. Innovation is a major growth engine for our company and we must continue to focus our vast and global expertise and resources to attain and sustain best-in-class products for pets and their families.”

One of the notable more recent projects Zesty Paws undertook was introducing the Puppy Milk Replacer as part of the brand’s first collection of puppy products including calming, multivitamins and immune support. “Crafted specifically to cater to this important life stage, Zesty Paws is excited to continue to expand our functional pet supplements offerings for dogs from puppy to senior,” VP of Marketing Yvethe Tyszka said. “A powdered formula, the Zesty PawsPuppy Milk Replacer is for nursing puppies with ingredients like colostrum, omega-3 and omega-6 fatty acids, and prebiotics and probiotics to support the healthy development of a puppy’s eyes, heart, immune system and gut.

Our veterinarian-formulated milk alternative is perfect for use in puppies up to six weeks old, but can also be given to senior dogs, or pregnant and lactating dogs to further support nutrition. Zesty Paws will continue to explore additional ways to incorporate other beneficial ingredients into early life products.”

First Take Live Foods Key Takeaways

Challenges in Live Foods Industry: 1) Suppliers face unique challenges given they need to ensure not only the integrity of the products they provide but also that these products remain alive and viable food for reptile pets in all seasons and all manners of delivery.

2) Into the new year, they are focused on product innovation, including packaging improvements and convenience for pet owners, reflecting a commitment to enhancing the reptile pet ownership experience.

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ithin the live foods realm, suppliers face off with challenges that are unique to the space that companies in other pet-related categories don’t necessarily get ensnared with. Categories in which products can be mass produced are not necessarily comparable to those that require waiting for a product to hatch and grow before they can be sold, and even more manufacturers don’t have to contend with ensuring the chilly winter and scorching summer months don’t inhumanely impact their products. In recent years, reptile animals are gaining popularity and traction as an alternative to traditional furry four-legged pets. Live foods suppliers have been dutifully instilling a sense of responsibility in pet owners to ensure reptile pets are consuming the appropriate live foods species and in the right amounts.

“What we’re seeing with the industry is that things are changing,” said Brandon Armstrong, Operations Manager of Armstrong’s Cricket Farm. “Things are always changing. Armstrong’s has tried to keep our ear to the ground to see what’s coming, to see what things are changing within the industry. But, at the same time, we are not getting away from what we know. What we do know is for us, for Armstrong’s Cricket Farm, the No. 1 thing is the crickets. You hear about cattle farmers and the No. 1 thing is the cattle; you have to have the product in order to sell it. With all the things that change in the pet industry, every year there is a new species, every year there is a new latest and greatest bug. The latest thing right now is the black soldier fly, which is awesome.

There’s also all of the different species of worms and things like that, but we do move cautiously with other species as a safety factor because these other species of bugs can carry certain diseases

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and things that we don’t exactly want to expose our colony of crickets to. We don’t want to expose them to outside contaminants.”

"We know how to raise the bugs that we know how to raise, and we’re really good at that,” Armstrong continued. “Are there people that are bigger? Yes. Are there people that are better? No. That’s one of the key things we have learned over the years is to stick to what you’re strong with; stick to what you’re good at. The sales growth that happened from 2020 to September 2022, you could almost mark it on the date. It was phenomenal almost to the point where it was unsustainable. What we started to see was a definite drawback both on the direct-to-customer side and also on the large pet chain side. Your major pet stores, all of them, there’s been a drawback as far as sales from what we’ve seen, and that has to do with the recession. Most of the suppliers I talk to, whether it be friendly competitors and things like that, they’ve also noticed a drawback which was to be expected with the state of the economy.”

He added, “Our main thing is staying cautiously adaptable and serving our customers to the absolute best of our ability. We ship 52 weeks per year.

There was not a time during the pandemic where we turned a customer away. There were issues where there may have been a day or two before we could make [something] happen, but we did not have an interruption in our supply. There are a lot of suppliers that can’t say that. We were able to meet all of our orders and ship all of our orders [through] the entire time of Covid. I would say that is No. 1 – we have fantastic employees. In March 2020 we had no idea what was going to happen, and my ladies and gentlemen, they rose to the occasion and I have nothing but great

things to say. They made it 100 percent possible. They made it happen.”

In 2023, Timberline Live Pet Foods opened its Assurance Farm and the company expects to continue with that jolt of energy and momentum going into 2024. “The Assurance Farm is our highly specialized farm that will serve as an insect backstop for our entire industry,” Director of Sales Andy Pettit said. “We will focus on research, husbandry, insect nutrition and ultra-efficient reproductive methods. Our process will generate cost effective solutions for those looking for live feeder insects both in the pet hobby and beyond.”

Timberline has unwaveringly paid attention to the company’s efforts of developing fresh ways to improve the reptile pet ownership experience for pet owners through enhancing the appearance of its packaging and the perception of convenience of replenishing their supply. “We believe that there is a constant need to deliver product to our customers and the end users in new, more convenient packaging that lends itself to higher quality feeders for longer periods of time,” Pettit said. “Quantities of insects per package are being evaluated as well to deliver exactly what our customers want.”

The industry has watched as the reptile and aquatics space experienced a tidal wave of interest and engagement from pet owners. “Several factors are involved in the recent spike,” Richard Koliner SVP Multipet International & Komodo US previously said. “Reptiles are a good steppingstone for a first pet. They live longer than most small animals and with the proper knowledge they are relatively easy to care for. Part of our focus is to educate the consumer on terrarium maintenance. We have several products that are geared towards keeping people and their pets healthy and clean.”

First Take Catnip

Key Takeaways • Product Expansion and Innovation: Manufacturers are focused on educating consumers

about new offerings and ensuring the development of safe and effective catnip options for pets. This includes sustainability efforts, such as minimal packaging and the use of recyclable materials.

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he catnip category has reached new heights as leading manufacturers are planning to launch and expand product lines in 2024. These companies are looking to educate, inform and raise awareness of their product offerings while dedicating time and focus to producing safe and effective catnip options for pets.

“We are planning to release several new products and retail displays throughout 2024. We remain focused on cats and helping our distribution and retail partners also have successful cat sections to offer their customers.

As part of our sustainability efforts, we have always kept our packaging minimal without the use of backer cards and clamshells. When developing new packaging we look for packaging that is recyclable or that contains post-consumer recycled content whenever possible,” said Kris Kaiser, Marketing with Yeowww! Catnip.

“We are looking forward to a busy and growing 2024 with the expansion of some of our existing product lines across Meowijuana and Doggijuana, and a lot of innovation to introduce at Global Pet Expo. “We are taking steps to fortify our supply chain to support that growth in what we expect to be challenging in a year,” said Scott Ragan, Managing Partner and CEO of SmarterPaw, parent company of Meowijuana.

“For 2024, we are looking to expand our operation and catnip growing volume, as our market keeps growing slowly but surely,” said Pascal Bedard, CEO of From the Field. “Our wholesale customer base is solid, and our sales are constantly expanding, so we are focused on making sure we have the correct amount of USA, organically grown catnip for our market. Since Covid, we’ve seen a solid expansion of new

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cat pet parents, and now those cats are part of their family and will always need catnip maintenance! We keep supplying free catnip samples with each order, for cats to try out our quality; they are so finicky! We keep working on offering more cat attractant variations, like adding silver vine and/or valerian roots to our catnip, giving a chance for more cats to experience bliss!”

These leading companies highlighted the next stages for their product lines and hopes for the new year.

“We will continue to develop new toys and displays for our retail partners, but our focus will always remain on cats and our organically grown catnip. Our toys are made with cats in mind first and foremost and due to the quality of our US organically grown catnip and the toys themselves, we believe they will stand the test of time and will continue to outlive any industry trends,” Kaiser said.

“The leading trend we see in the toy market is the continued premiumization of the market or ‘toy plus’ category for pet parents wanting more from their toys. For more than 10 years, there has been a shift to more premium, natural ingredients in food and treats, as well as better quality, more natural materials in toys and supplies. Today’s pet parents are looking for quality brands that offer opportunities to enhance the relationship and time spent with their pet(s), making the relationship better and more fun,” said Ragan. “As a company whose sole purpose is to improve the lives of pets and their people, because of this focus, we are innovation leaders in our space because of our talented team and their love for pets. Great people, great products, innovation and more support - we are looking forward to a great 2024!”

“For catnip and cat toys, the trend is steady; good quality catnip and catnip filled cat toys made and grown in the US are expanding gradually, it’s a staple in our industry,” said Bedard. “There are a lot of great US manufacturers, and a ton of overseas manufacturers. For our hemp cat toys and catnip, more independent pet stores are moving toward US made toys, and bigger chains understandably are working with more overseas manufacturers, for large volume availability, price competition and streamlined delivery etc., sometimes at the cost of quality.”

“All Yeowww! Catnip toys are made by us in the USA, so we have the flexibility to adjust production to meet demand and avoid most supply chain issues,” said Kaiser.

“Our fill rates for 2023 to retailer partners were excellent, and we are set to continue, if not exceed, that momentum into 2024. We’ve exceeded most retailers’ sales forecasts and have been able to provide quick refills to keep the sales flowing. We work hard, with a diversified supply chain, to ensure that our customers have access to increased inventory to scale with their business sales scaling,” said Ragan with Meowijuana.

“In our industry we’ve seen some ups and downs in our packaging material, but so far, it’s going uphill. The key word is redundancy,” said Bedard with From the Field. “Pretty basic, but always have more than one supplier to work with. As we control our catnip growth and production, we are in good shape on that level. Catnip and cat toys are a niche market. It makes it manageable. We had to refuse large orders sometimes so we could cater to our independent pet stores, which is our main focus and has been for more than 20 years.”

First Take Meat Treats Key Takeaways

• Protein Diversity and Functional Nutrition: The industry is witnessing a shift towards diverse protein offerings, going beyond traditional meats like beef and chicken. Treats are now designed to address specific lifestyle and nutritional needs, providing functional benefits and supplementing pets' diets.

• Innovation and Market Dynamics: Treat manufacturers are investing in new product development, with a focus on introducing unique shapes and recipes.

I

n the production of meat treats, not all meat is the same. Meat treat manufacturers abide by the demands of today’s pet owners to source and use only high-quality and often human-grade proteins—and a diverse array of proteins at that. Multifunctional treats that help to supplement some nutritional deficiencies are also trending in popularity heading into 2024. To establish the strongest foundations for growth, these companies are also building up their supply side infrastructure and forging partnerships with third-party groups to earn certifications that instill public trust in the claims that they are making.

“2024 will be another dynamic and innovative growth year at Phelps,” said Rick Ruffolo, CEO and President of Phelps Pet Products. “We opened up our largest production facility in Janesville, WI during 2023 which more than doubles our capacity, greatly expands our product design capabilities and features the state-of-the-art equipment from our recent acquisition of the Simmons Pet Treats facility in Arkansas. So, the clear focus is bringing to market new products and new customers who now are able to leverage these new shape and new recipe capabilities. We also continue to take a leadership role in driving sustainability efforts for our retail private label and branded customers through our unique partnerships and certifications including those with the Upcycled Food Association, Marine Stewardship Council, USDA Organic, Made in the US and the Pet Sustainability Coalition, among others.”

Treat Planet also has a multi-pronged approach to growth and expansion this year. “In the upcoming year, Treat Planet is set to focus on supporting our core product lines and driving innovation throughout our business,” said Josh Meyer, VP of Sales—Pet Specialty. “Our

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commitment lies in the exploration of new products, continuous process refinement and the enhancement of marketing strategies to align with the ever-evolving needs of our consumers.”

Scott Wu, Vice President of Hillside Farms Corporation, offered, “In 2024, along with new product development, our main goal is to strengthen our relationships with our partners. Understanding what their goals and objectives for 2024 are and how we can help achieve these milestones. With an ever-changing industry, we first must learn what the customer needs and wants are during this economic period. If one can learn the needs of their customers, this positions you the best chance at success,” he said.

Specific to product innovation, Treat Planet has needed several factors related to meat treats that are currently in demand and expected to heighten in the near future. “In the dynamic and expanding pet treats category, Treat Planet anticipates several developments and trends that will continue to shape the category,” Meyer explained. “Key expectations include a heightened focus on health and wellness, a preference for natural and human-grade ingredients and the pursuit of innovative formulations featuring unique proteins and diverse ingredients.”

Ruffolo with Phelps Pet Products breaks things down further in terms of where consumer demand currently sits and where it might be headed.

“The meat treat category continues to be the key driver in the overall market,” he said. “It is the fastest-growing segment, and the area where the majority of innovation is occurring. This is due to the fact that consumers are increasingly looking for clean label, low-fat and protein-rich treat choices for their dogs.

This shift will continue to gain momentum in 2024. We are seeing more

and more retailers reducing facings of biscuits and other products with less nutritional value in favor of expanding their meaty treats section.”

According to Ruffolo, there are three key trends to note: protein diversity, functional treats and treats as meal toppers. “Let’s start with protein diversity,” he said. “The data shows that the best brand and retail assortments include a diverse selection of protein types which brings more incremental sales and customers to the aisle versus bringing in yet another biscuit, bone or cookie. Protein diverse diets perform exceptionally well in studies, and protein diversity has become a key trend as consumers want to supplement their dog’s diets of traditional beef, chicken, pork or turkey treats with proteins such as salmon, venison, bison and lamb. It also is interesting to see that the product providing the most incremental volume these last two years is our 100 percent plantbased (meatless) jerky treats. While plant-based treats are not the top-selling products in the market and certainly won’t fully replace all other meaty treats, they are highly incremental and are the most sought-after because our 100 percent plant-based treats are allergen-friendly and hit on all the key trends including sustainability, low-fat, clean label and protein diversity.”

Ruffolo continued, “You will continue to see more meaty treats include functionally relevant ingredients that aid in lifestyle and life-stage challenges. While freeze-dried treats have many positives, their limitations include the product’s inherent lack of differentiation. Fortunately, consumers are seeing how much easier it is to ensure their dogs are getting the proper nutrition and other helpful ingredients through functional treats vs. struggling to force their dogs to swallow supplement pills."

First Take

Small Breed Dog Toys Key Takeaways

• Health and Wellness Integration: Small breed dog toy trends are aligning with the broader pet industry shift towards health-conscious products.

• Enrichment and Engagement: There is a focus on toys that actively engage and enrich the pet's physical and mental well-being and encourage bonding.

T

oys designed and catered to smaller breeds ensure safety to the pet and are more likely to be enjoyed by both the pet and pet parent. Dog toys manufacturers are intent on enlightening pet owners to the fact that enriched pets who have been energized physically and mentally will display positive behaviors.

When pups are bored or stressed, that’s when shoes and cherished belongings tend to be destroyed. Toy manufacturers are doing their part to prevent dogs from being surrendered or mistaken as unruly or rambunctious. Instead, these chewers are simply bored and need a toy tailored to the size of their breed and the size of their energy level.

“Popular dog toy trends driving growth are dog toys that provide engagement, enrichment, dental hygiene while challenging [and] stimulating our dog companions to keep them active and excited,” said Mammoth Pet Products’ Founder Charles Byrne. “While passive licking and chewing dog toys are nice, the real fun starts when pet parents and pet pup and dogs play together with engaging products. We like Mammoth products that are scented, enrich-able, and our Mammoth toys are made with natural materials. Flossy Chew rope toys are great for engagement and dental hygiene and are made with premium quality natural cotton-poly yarns. TireBiters are also great for engagement, and enrich-able and are made from natural rubber. Both Flossy Chews and TireBiters have natural material scent that pups are attracted to. In 2023 Mammoth introduced Flossy Chew Peanut butter scented rope toys to increase dog attraction and interest. In 2024, Mammoth is introducing several new Flossy Chew and TireBiter items that build upon these popular trends so stay tuned.”

WACKYwalk’r is focusing on their upcycled sustainable products. “I feel we have been ahead of the curve with

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certain trends and consider ourselves a ‘forward thinking company’ and will continue to develop innovative products while focusing on minimizing waste,” said President Michael Young. “We are also hyper focused on the experience we hope to create with pet parents.

We’re very proud to keep our production capabilities here in North America. It reduces lead time and obviously results in no import taxes or duties. We also listen very carefully to our retail partners and their suggestions. We have come up with some really exciting new display options to accommodate ever changing needs. We are working with pet specialty, mass and even grocery.

We are flexible and adapt quickly to satisfy what the market demands.”

“In the coming year, Jolly Pets is geared up for exciting developments across various fronts,” said Marketing Director Louisa Casto. “Our primary focus lies in new product development, addressing the evolving needs of pet owners. We're committed to bringing innovative and engaging toys to the market that enhance the overall well-being of pets. Simultaneously, we are diligently working on bolstering our supply side logistics to ensure efficient and timely delivery of our products.

Sustainability remains a core value for Jolly Pets, and we're actively exploring initiatives to minimize our environmental footprint.”

“As Ruff Dawg passes its 25-year milestone, the coming year promises even more tail-wagging, crazy-bouncing excitement!” said VP of Sales and Marketing Jerry Moffett. “We're proud to be a beacon of quality and reliability in the world of premium pet products. Our focus is on expanding our best-selling line of ultra-tough, FDA-approved solid rubber toys, with a lifetime guarantee straight from us, the manufacturers, and we're not leaving anyone out—because all size dogs demand tough toys!

In the year ahead, we're also ramping up customer awareness and brand recognition through engaging social media campaigns to make sure your customers know who we are and what we're about. Expect some fun campaigns that you won't want to miss.”

“Mammoth’s 2024 goal is to bring new products to market and continue to reinforce existing customer relationships and expand distribution into new market channels,” Byrne said. “Mammoth has increased product development and we are very excited to introduce several new items in 2024.”

“The pet industry is dynamic and continually evolving,” Casto said. “In the coming year, we anticipate a notable shift towards pet products that enhance the interactive experience between pets and their owners. Health and wellness will continue to be a significant trend, influencing both nutrition and toy categories. Jolly Pets is aligning itself with these trends, ensuring our products not only cater to the playfulness of pets but also contribute to their overall health.

The rise of e-commerce in the pet industry is another trend we are closely monitoring, and we are optimizing our online presence to meet the changing shopping habits of pet owners.”

“We've already witnessed how Made in the US has gone from being a nice perk to a gold standard,” Moffett said.

“Choosing dog toys [that are] Made in the US isn't just about being patriotic anymore—it's the smart move for pet parents. Dogs don't exactly read ingredient labels, so knowing that their toys are Made in the US from FDA-approved safe materials means peace of mind.

The lifetime guaranteed toy is another trend that is never going away. People are not just buying a toy, they're investing in a promise of long-lasting fun. The enduring trend of lifetime guaranteed toys reflects a consumer shift toward accountability."

First Take

Private Label Foods Key Takeaways • Rising Popularity of Store Brands: Store brand pet products have grown in not only quality but also quantity and variety as reported by the PLMA in 2023. Private label brands are now sometimes the pace setters rather trend followers of the past.

• Perceived Value and Quality of Private Labels: Consumers now view private label pet foods as more than just cost-effective alternatives. Private labels are seen as brands with their own identity, brand equity and nutritional philosophies, making them competitive against national brands.

A

s inflated prices have continued to stymie some pet owners in their ability to procure—or afford—their favorite named brands of pet foods, the Private Label Manufacturers Association (PLMA) has confirmed the growing popularity of store brand pet foods in the last year. In general, store brand goods are no longer perceived as the second-tier, generic products that previous generations were resigned to when they had to adhere to strict household budgets. The change is evident in the quality and array of pet foods that many leading pet retailers now offer, some of which are no longer following what is trending but instead are setting the pace for innovation and growth.

“Consumers no longer view private labels as just a less expensive alternative, they’re looking at a private label as a standalone brand, with its own brand equity and nutritional philosophies that make products competitive against national brands,” said Alphia Chief Commercial Officer Heather Govea. “Private labels are no longer just chicken and rice diets. Alphia is helping retailers move to more solutions-based diets —sensitive stomach, sensitive skin—, giving their products the same consumer appeal and solution-based stories as national brands.”

“We’ve seen tremendous amounts of growth in these areas, and we’re seeing private labels offer up some tough competition,” she added. “Private labels have always been a fast follower but, based on growth and consumer demand, we’re starting to see private labels beginning to lead in these areas before the segments are fully established.”

Last June, the PLMA credited Circana with data that showed that store brand pet product dollar sales in all US outlets surpassed $4.8 billion for the 52 weeks

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ending in May 2023. Sales of private label pet products were up across pet categories: pet food sales hit $1.5 billion, a 27.7 percent increase over the prior year; litter reached $381 million, up 22 percent; pet treats achieved $635 million, a 21 percent gain; and pet supplies approached $2.3 billion, a 7.3 percent uptick.

“The soaring retail sales reflect the high level of product innovation and line expansions in the private brand pet business,” said PLMA President Peggy Davies.

Outside of pet categories, store brand dollar sales across all US outlets increased 8.2 percent versus a gain of 5.1 percent for national brands, according to Circana data from the six-month period ending June 18, 2023 compared with the same six-month period in 2022, according to the PLMA. "These numbers may grow as student loan repayments resume and borrowers of all ages lean further into strategies to tighten household budgets, including adding more value-friendly store brand items to their grocery list,” said Mary Ellen Lynch, principal at Circana, in July.

Davies said an uncertain economy coupled with many marketers continuing to hold on to recent inflation and supply chain-related price hikes, have turned consumers on to the benefits of store brands.

“Having opted for a store brand over the national brand for the first time, there's a strong likelihood the shopper will stick with the store brand,” said Davies. “In addition, we are also seeing retailers doubling down on product innovation in food and non-food to take advantage of the flow of new store brand customers."

“When people hear ‘private label,’ consumers may view that as a cheap-

er alternative that comes with a lower-quality product,” Govea said. “Alphia treats our private label customers no differently than we do a national brand.

We help our private label customers articulate nutritional platforms, obtain and design quality packaging, meet strict label requirements and even help distinguish claims that appeal to today’s consumer.”

The PLMA’s Salute to Excellence Awards lauded Federated Group’s Praise Complete cat food gourmet variety in the Pet Food category and Walmart’s Pure Balance PRO+ Calm Ease in the Pet Chews & Treats category.

Private label manufacturers like Alphia, meanwhile, continue to innovate and serve customers by providing milling, R&D, innovation, warehousing, transportation and distribution services, even as M&A activity continues in its periphery.

In August, PAI Partners, a private equity firm, announced it was acquiring Alphia from J.H. Whitney Capital Partners, which acquired Alphia’s predecessor, C.J. Foods Inc. in 2014. Alphia was formed through the merger of American Nutrition, Inc. and C.J. Foods in 2020.

“Alphia is built on a combined experience of more than 70 years,” Govea said.

“That foundation was built on trust, food safety and high-quality products.

We’ve combined remarkable legacy organizations to create the best in the industry with the largest super premium 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 procure unique and differentiated ingredients.”

PRIVATE LABEL PET FOOD Stand out among the competition and build customer loyalty by creating, revising or expanding your store's pet food brand.

Alphia offers retailers the resources to innovate the right products and manufacture them safely at scale.

INTERVIEW

Ricardo Azevedo, CEO, Woof Gang Bakery & Grooming

Woof Gang marks your entry into the pet industry. Tell us how your career path led you to Woof Gang?

I’ve always considered myself a pet lover. For 12 years of my career before here, I was in the franchising industry in RBI, the Restaurant Brand International that owns large brands like Burger King, Tim Horton’s and others. I was already very involved in franchising—what I love—and I love the concept of entrepreneurship the franchising business brings. I was there for 12 years, and it was time to change. One of my partners I was already working with when they showed me what the Woof Gang brand was about, it was love at first sight. I said, “This is a dream.” I can’t believe I will be able to work with a brand and a concept like that and what the brand stands for just resonates so much with me and what I want to do with my career. It was like, “Yeah, let’s do this tomorrow.” It was really good timing for me in my career. I couldn’t match my passions to a better brand than Woof Gang.

In this industry, people are so nice and even all the stakeholders who are involved in the pet industry, everyone is so passionate; it makes working here a pleasure. It’s very different than some of the other industries I’ve worked in, where business is what drives most of the decisions. In pet, our decisions are driven above and beyond the business, and that I love. The engagement with all of the stakeholders, it's just unbelievable, and I’m loving it. It was a very good change.

What aspect of your work ethic has helped you become successful?

When you work in the franchising industry, there’s a lot about integrity, PG 60 / PET I N S I G H T

resilience and transparency that is key for success. Understanding what drives the success of the business is really the success of our franchisees. That’s something that I’ve always taken very seriously in my entire career. You are never going to see a brand succeeding in franchising that’s just based on a push or a driver. There is always the franchisee’s success that leads the growth and leads to what brands become. My entire mindset is on transparency, integrity and doing what’s right. In my entire career, every time I thought about that, when I needed to make a decision, or when you have what is right to do in the long-term, the first thing that comes to your mind, that’s what drives the right decision. That’s what I’ve been trying to do and it seems to work. Sometimes it’s not the easiest way. Every time you think of the long run and what is going to drive the success of the business, the brand you are involved with as the top priority, it really works. I’ve seen it over and over, and many of the leaders that I admire in this industry and other industries, I see the same. You believe in something, you have a long term mindset and you do what is right, always. You don’t cut corners. Sometimes it’s easier, sometimes it’s harder, you need to work hard to get where you want to get. But you can’t cut corners. You need to do what’s right. Always.

So far, what do you enjoy the most about working in pet?

There are a lot of positives. It’s different than when I was young. It’s evolved; pets have become a big part of our family. I never had the pleasure and the joy to work in an industry where you’re impacting in a positive way people’s lives. Not only the team members, but you’re impacting the customers and the guests. That’s what got me excited in every discussion we have here with suppliers. We’re always discussing how we can do better in the well-being and happiness of pets. That is amazing.

That’s something personally for me is very rewarding and something that in my career never had such a joy working with something that I love so much and I know we have a big impact on. It’s what drives all of the decisions I make and my team makes and that’s why I’ve enjoyed it so much during the last year

and a half I’ve been working here at Woof Gang.

That’s what brings me joy; that when you can create a brand, the more that we grow, the more we can positively impact the lives of pets across the country. It’s like wow, let’s do more; let’s go faster. I really feel the more we grow, the better we will [be], the more we’re going to impact in a positive way many of our beloved pets around the country and around the globe. And what I see a lot when customers come to our store is, “Oh, we had a Woof Gang close to where I lived.” It’s a joy when we can know that you’re going to have a place that you can bring your dog in a safe way that they are going to be taken care of. The products that we sell ultimately is what is best for them to consume.

Our concerns about our own health and wellness really evolved and that is what is cascading onto our pets and that’s why it’s so important to maintain the highest quality of products, and the one that we know will bring the well-being of all of the pets that enter our stores further. And that’s really rewarding.

We not only take it very seriously, we find everything that we do in terms of what we offer in our stores, there are products that people want to buy but aren’t necessarily the best thing to be buying. We work with brands that share the same views, that have the same mindset, that understand that the ingredients we put in our products can impact our dog’s life and keep the very best. That is extremely important, and at Woof Gang, we take it very seriously.

This was already the mindset inside the organization, the franchisees and what the brand represents, and it’s really what attracts us to come to Woof Gang and be part of it.

What is the role of pet specialty retailers and groomers in the pet industry?

When you think about the evolution of this industry I really think that pet specialty is where change comes from in the first place, and all of those large and big box [stores] try to replicate down the road; but what we can provide in pet specialty is very hard for them to provide. When you think about the care, r Cont'd on Pg. 62

Interview: Ricardo Azevedo, Woof Gang Bakery & Grooming r From Pg. 60 the specialized customer service that we can offer in a Woof Gang store compared to a big box store it’s just completely different. Our franchisees are owners. They are there every day, they know the names of all the pets, they know what they like, what they should be doing to make their experience special. It’s hard to replicate that at a large concept and scale. The reason we can do it is because we have our ownership in every single store. Our franchise model really allows us to bring a level of customer service and care and ownership that you can’t match in another format.

When you think about the knowledge and the specialization and the neighborhood involvement, They know their community, they know all the customers who come in and visit, they become part of the experience of a Woof Gang. I really think that’s what differentiates the pet specialty versus the big box concept out there. Also, when you really want to go in and talk to somebody who understands, it’s just a completely different experience to go into one of the stores where you know there are people there just like you, who love your pets as much as you do. On the service side, our brand today is the largest grooming concept in North America, and that’s true on the service side as well, even more so. The knowledge and the relationship between the groomers and the dog is extremely critical. It’s not just about coming in for grooming service.

Rather, when a dog comes in for grooming, it’s something special, and that’s the mindset that we have and we train our franchisees to have. That’s what makes a big difference. It’s hard for a big box to replicate that.

That is the core of our brand. That is what we call the Woof Gang Way. When we train our franchise owners, we teach them the Woof Gang Way of customer service; how to make the customer feel like they’re home, how to understand their needs and calling their pet by name is a must. You need to know every single pet that comes into your store. That’s basically our mindset. That mindset is what makes the experience extremely different at Woof Gang.

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What do you attribute to Woof Gang’s continued success?

It's the customer service that is unmatched. It’s a concept that is very focused on doing a few things very right and that is also a very important aspect that I see in a lot of retailers in the industry. There are a lot of concepts that want to do everything; they want to be a one-stop shop—we groom, we board, we train, we have retail—you can’t do everything right. It’s having a focus on where you want to be extremely good.

It’s the strength of the brand, and that’s why this concept works so well. We are a very pet specialty boutique experience and that’s what we are going to do. We don't want to sell everything.

We want to be a place where you can find the best. That’s what we want to do, and we are the best grooming place you can bring your dog to. Period. We want to focus on doing those two things extremely well because that’s what the brand represents: the well-being of pets. Being educated on these core values is what made us successful.

We have three main values in our company. One is the happiness of pets, creating this boutique experience and fostering a sense of community. Those are the three principles of Woof Gang and they resonate a lot with what our customers are looking for today. When you are living by those values, you are going to please a lot of the customers who come through our stores because that’s what people are looking for today.

They are looking for high-quality products, they are looking for someone who knows and are concerned about their pet’s wellness and they’re looking for a retailer that offers a service they can’t find anywhere. That’s what has driven our growth. We're not doing anything else to push our stores. We are growing because there’s a reputation and a concept across the board.

We are growing really fast but we are more concerned with and focused on expanding our core values than the speed at which we grow. That’s basically what’s on our mind every day. We are growing extremely fast but that’s not what is driving us. What drives us is keeping the reputation and the values of the brand intact as we grow. That is our key priority. Because of the fran-

chise model, it allows us to grow with like-minded people at a really fast pace without having to compromise who we are. The franchisees have proven to be part of the Woof Gang family and that’s the future. They need to lead by the principles that we believe here.

What can you tell us about plans to expand into South Florida?

Florida has always been a strategic area for us. The brand started in Palm Beach and we have a huge presence.

South Florida is the last part of Florida where we are gaining a huge presence.

The growth that you are seeing in South Florida specifically is a consequence of the growth that the brand had in Florida along the years. The locations we have been opening have been successful.

There is a lot of interest in the concept here as well. There are a lot of really nice locations that are coming for developments that are crucial to spread what we want, to have our brands as close to the pet parents as we can manage.

What are your goals and priorities for Woof Gang in 2024? How will you navigate the company through continued rapid expansion plans while maintaining the integrity of established stores?

2024 will be a very big year for us.

There are a lot of new franchisees coming into the system. There is a lot of excitement around the new year. It's going to be a big year for us, and the priority is keeping the momentum and growth going while we maintain the values of the brand. That’s what we are building our future on in order to achieve. Knowledge and process around it continue to grow at the pace we’ve been growing at and maintain all the great Woof Gang values that are there, including the network of neighborhood pet stores, and that we can spread love and joy to all the pet communities around the US and Canada. We are in a good place and we want next year to be as good as it was this year. The quality of our stores and to grow in a sustainable way. That is what we are looking for next year. You can expect more growth from Woof Gang and more communities around and keep painting the world pink.

WUNDERBALL Our Brand New “Small and Mighty” Register Display

Only 10” x 10” Small Footprint Big Sales!

SAVE DATE THE

You came (to North America’s largest pet retail event). You saw (the latest, greatest pet products).

You conquered (your business challenges). And we can’t wait for you to keep that momentum going next year! Thank you for helping to make SuperZoo the incredible, fun-filled event that it is.

We look forward to seeing you in 2024!

August 14-16, 2024

Education: August 13-14, 2024 Mandalay Bay, Las Vegas, NV

20,000+

Pet professionals participate, including: Largest Industry Show Floor

10,000

buyers—the most in North America

1,100+ exhibitors

3,300+

buying companies

300,000 square footage

Source: 2021 SuperZoo attendee surveys