Milling & Baking News Corporate Profiles - 2019 - 50

INDUSTRY REVIEW: PET FOOD

Pet food
Pet food and treats jump channels, challenge tradition
ith Blue Buffalo, Wilton, Conn., leading the pack, pet food and treat
brands have strayed from their traditional sales channels - either
pet specialty, Food, Drug and Mass (F.D.M.), or internet retailers - to
unapologetically meet customers where they shop.
"We're focused on significantly expanding Blue's availability so that pet parents can get the Blue products they want anywhere they shop for pet food,"
said Billy Bishop, Blue Buffalo's founder and brand adviser, during General Mill
Inc.'s Sept. 18 earnings call covering the first quarter of its fiscal 2020 year.
Minneapolis-based General Mills acquired Blue Buffalo in 2018.

than 20% in the first quarter as well, according to the company, which expects
e-commerce growth to continue at 8% to 10% throughout fiscal 2020.
Unfortunately, as the company shifts focus toward F.D.M., Blue Buffalo sales
in the pet specialty channel declined at a double-digit rate. To repair relationships with pet specialty customers, General Mills has launched a new super
premium line, Carnivora, which will be sold exclusively in the pet specialty
retail space. As brands are widening their product lines to offer exclusivity to
certain channels, those channels are creating brands of their own.

High-end house brands
Changing channels
So far, this approach seems to be working for the super-premium brand.
Blue Buffalo sales topped $368 million for the first quarter of fiscal 2020 and
were up 7% from year-ago sales. General Mills said retail sales for F.D.M.
customers who have carried Blue Buffalo for more than 12 months were up
50% versus last year. E-commerce sales for the pet food brand were up more

House brands have dominated the low end of the pet food market for years,
but this was before premium and super-premium products took over F.D.M.
retailer shelves, said Steve Mills, senior vice-president, customer brands and
co-manufacturing, American Nutrition Inc., Ogden, Utah.
"Now that more premium and super-premium products are migrating from
pet specialty to F.D.M. shelves, it creates the opportunity for F.D.M. retailers to

LEADING

dry dog food brands

dry dog food vendors
1
2
3
4
5
6
7
8
9

Nestle Purina PetCare Co.
Mars Petcare
Big Heart Pet Brands
Ainsworth Pet Nutrition
The Blue Buffalo Co.
Sunshine Mills, Inc.
American Nutrition, Inc.
Mars, Inc.
Gentle Giants Canine Cuisine
Private label
Total

Dollar sales
$1,988,677,499
$1,313,879,194
$494,847,580
$440,696,214
$234,345,761
$37,758,518
$25,281,125
$23,800,055
$11,464,943
$719,613,872
$5,342,414,504

% change
from
year ago
-0.7%
6.2%
4.0%
1.4%
116.9%
-6.1%
-8.5%
7.2%
84.4%
-3.7%
3.4%

1
2
3
4
5
6
7
8
9

Nestle Purina PetCare Co.
Big Heart Pet Brands
Mars Petcare
Ainsworth Pet Nutrition
The Blue Buffalo Co.
Mars, Inc.
Simmons Pet Food, Inc.
Sunshine Mills, Inc.
Dad's Products Co.
Private label
Total

Dollar sales
$1,248,354,111
$552,001,658
$184,326,701
$79,243,508
$65,181,585
$14,404,581
$5,570,620
$4,770,864
$4,129,245
$216,308,908
$2,385,375,871

Pedigree
Purina Dog Chow
Purina One Smartblend
Iams ProActive Health
Rachael Ray Nutrish
Kibbles 'n Bits
BLUE
Purina Beneful
Purina Beneful Healthy Weight
Private label
Total

Dollar sales
$640,528,136
$484,384,269
$358,826,867
$284,580,158
$282,960,934
$230,945,301
$213,422,461
$185,309,655
$132,520,879
$719,613,872
$5,342,414,504

LEADING

dry cat food vendors

1
2
3
4
5
6
7
8
9

% change
from
year ago
5.7%
5.7%
4.0%
7.1%
9.0%
15.3%
99.0%
-3.0%
-19.5%
-3.7%
3.4%

% change
from
year ago
-1.8%
5.8%
-0.6%
19.1%
101.9%
-24.8%
2.0%
-23.5%
-40.1%
2.1%
2.0%

dry cat food brands
1
2
3
4
5
6
7
8
9

Meow Mix Original Choice
Purina Kit & Kaboodle
Purina Cat Chow Naturals
Purina Cat Chow Indoor
Purina Cat Chow Complete
Meow Mix Tender Centers
Purina Friskies Seafood Sensations
Purina One Smartblend
Rachael Ray Nutrish
Private label
Total

Dollar sales
$200,876,952
$194,733,419
$113,438,845
$106,846,277
$104,752,636
$90,115,854
$83,232,852
$77,411,491
$76,727,571
$216,308,908
$2,385,375,871

% change
from
year ago
4.8%
-2.1%
-7.6%
-3.8%
6.9%
9.9%
9.3%
-3.6%
24.5%
2.1%
2.0%

Data for 52 weeks ended Aug. 11, 2019
Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Information Resources, Inc.

50 \ November 2019

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