Welcome to part 2 of the Top 10 Global Pet Food Leaders (companies 1-5).
1. Mars Petcare
World headquarters: McLean, Virginia, USA (Mars Petcare: Franklin, Tennessee, USA)
Approximate 2006 global retail sales: US$10.71 billion
Officers: Doug Cahill, president, Mars Petcare US
Top brands: Pedigree, Cesar, Sheba, The Goodlife Recipe, Whiskas, Greenies, Royal Canin
New products: Cesar Gourmet Filets in sauce, WholeMeals for Dogs, Multi-pack Whiskas Favourites and Fisherman’s Choice (UK)
Websites: www.mars.com; www.marspetcare.com
Mars Petcare, the pet division of Mars Inc., continues to grow by relying on innovation and leveraging the expertise within its Waltham Centre for Pet Nutrition. Sales across its core brands, such as Pedigree, Cesar and Whiskas, have remained strong, Mars says. The introduction of the Goodlife Recipe was the largest brand launch in Mars Petcare US history, according to the company, and the line has performed well.
That launch contributed to Mars’ earning the number two spot for new dog products in 2007 and the number one spot for new cat products (Table 4). The company also launched two Whiskas steam-cooked 12-pack cat foods exclusively to UK independent retailers in late 2007. WholeMeals for Dogs is the first single-piece meal designed for dogs, according to Mars, and will be available at pet specialty retailers in the US in February.
The company asserts all its products, branded and private label pet food, undergo industry-leading testing and quality control, and its stringent quality program extends to its supply chain.
2. Nestlé Purina PetCare
World headquarters: Vevey, Switzerland (Nestlé Purina PetCare: St. Louis, Missouri, USA)
Approximate 2006 global retail sales: US$10.48 billion
Officers: W. Patrick McGinnis, CEO, Nestlé Purina PetCare; Terence Block, president, PetCare NA; Rock Foster, CFO
Top brands: Purina, Friskies, Alpo, Beggin’ Strips, Beneful, Busy Bone, Fancy Feast, Mighty Dog, Pro Plan, Bakers, Felix, Go Cat, Gourmet Gold, Vital Balance, Vitalife, Cheweez, DeliCat, TBonz, HiPro
New products: Friskies dry food line: Seafood Sensations, Indoor Delights, Signature Blend, Feline Favorites; Pro Plan Dry Senior Cat Food
Websites: www.nestle.com; www.purina.com
Employees: 7,000
Successful new products, such as the expanded Friskies dry cat food line, as well as a continued emphasis on innovation based on humanization secured Nestlé Purina Petcare (part of Nestlé SA) another flourishing year. It was the number one company for new dog products and number two in new cat products (Table 4).
With 24% of the total market share in 2006 (Table 2), Nestlé is focusing development on niche markets. The Pro Plan Dry Senior Cat Food line is an example, specially designed for aging and elderly cats.
Premium and super premium pet food brands have been driving growth in the UK. Top performing brands include Pro Plan and Bakers Complete. Eastern Europe is another growth area for the company, where in August Nestlé Russia announced plans to open a factory in Vorsino, Kaluga Region.
3. P&G Pet Care
World headquarters: Cincinnati, Ohio, USA (P&G Pet Care: Dayton, Ohio, USA)
Approximate 2006 global retail sales: US$2.86 billion
Officers: A.G. Lafley, CEO and chairman
Top brands: Eukanuba, Iams
New products: Eukanuba Healthy Extras Puppy Growth Biscuits, Eukanuba Mature Care Formula for Cats, Iams Premium Protection for Dogs and Cats, Iams Healthy Naturals, Iams Digestive Care for Cats
Websites: www.pg.com; www.eukanuba.com, www.iams.com
Since the petfood recalls last March, Procter & Gamble’s shares in the pet segment have been down, running 1 to 1.5 share points lower since the four weeks ended February 24, 2006, the last period before the crisis. “Unfortunately, even though these wet and semi-moist products are less than 10% of our product line, we frankly got hit pretty hard,” stated A.G. Lafley, P&G CEO and chair.
Even though P&G’s larger dry food business was unaffected by the recall, many have speculated, due to dropping sales and shares, that P&G may sell their Iams and Eukanuba brands.
P&G Petcare managed a healthy US$2.86 billion in retail sales in 2006, with a strong showing in new product launches in both dog and cat food (Table 4). Iams Premium Protection line for Dogs and Cats, launched in August 2007, boasts offerings for eight of the top 10 dog health problems and seven of the top 10 cat health problems with a barrage of ingredients and antioxidants, according to P&G.
4. Hill’s Pet Nutrition
World headquarters: New York, New York, USA (Hill’s Pet Nutrition: Topeka, Kansas, USA)
Approximate 2006 global retail sales: US$2.77 billion
Officers: Robert Wheeler, Hill’s Pet Nutrition CEO; Neil Thompson, Hill’s Pet Nutrition president of Americas; Janet Donlin, Chief Veterinary Business Channel
Top brands: Hill’s Science Diet, Hill’s Prescription Diet
New products: Science Diet Nature’s Best Canine petfood, Prescription Diet Canine and Feline Treats
Websites: www.colgate.com; www.HillsPet.com; www.HillsVet.com
Employees: Over 2,800
With companies outside of North America growing the most, Hill’s Pet Nutrition still managed 8.8% in growth from 2005 to 2006 and an overall growth rate of 60.9% since 2000 (Table 3). Hill’s says its keys to expansion are building and strengthening relationships in the veterinary profession and continuous innovations and improvements in wellness and therapeutic petfood nutrition. Hill’s also announced plans to build a new manufacturing plant in Emporia, Kansas, USA.
Less than 1% of Hill’s products were affected by the recalls, and the company strives to remain known for the highest quality and safety standards. After the recalls it added additional pet food safety checks on raw materials and finished products prior to release.
This past year Hill’s relaunched Science Diet Nature’s Best Canine petfood and introduced Prescription Diet Canine and Feline Treats.
5. Del Monte Pet Products
World headquarters: San Francisco, California, USA
Approximate 2006 global retail sales: US$1.67 billion
Officers: Richard G. Wolford, chairman of the board, president and CEO; Jeff Watters, Del Monte Pet Products senior vice president
Top brands: Meow Mix, Kibbles n’ Bits, 9Lives, Milk-Bone, Pup-Peroni, Pounce, Wagwells, Gravy Train, Jerky Treats, Canine Carry Outs, Snausages, Nature’s Recipe, Alley Cat, Meaty Bone
New products: Nature’s Recipe Farm Stand Selects, Kibbles n’ Bits Brushing Bites Dog Food
Website: www.delmonte.com
Employees: 1,760
Although Del Monte’s shares dipped US$0.73, or 7.5%, the company had an astounding 57.6% growth from 2005-2006 (Table 3). The company produced second-quarter earnings per share of 13 cents vs. 11 cents last year. Sales rose 5% with growth in new petfood offerings. Del Monte is hoping competitors in the industry push through a price hike early this year to offset the rising costs of grains used in brands such as their Meow Mix and Kibbles n Bits brands.
Del Monte’s net sales for the year ended April 29, 2007, were US$1.3 million, an increase of 50% compared to fiscal year 2006. The increase was driven by volume gains primarily due to continued momentum of Meow Mix cat food and Milk Bone dog treats. Growth from new products and net pricing actions also positively contributed to the increase in net sales, with 16 SKUs in new cat food products (Table 4).
