Milling & Baking News Corporate Profiles - 2019 - 51

create similar brand offerings of their own," he said.
These new house brand pet foods have become top-shelf competitors and
are attracting consumers with premium ingredients, functional claims and
lower price points than top premium brands.
Jared Koerten, an analyst covering packaged foods for Euromonitor International, said millennials who favor both premium and value are helping drive this trend.
Private label products are rising in the ranks in pet care, with retailers launching
their own brands across all channels and categories. According to the Private Label
Manufacturers Association, New York, store brands' market penetration set all-time
records in 2018, increasing dollar share and unit share at double-digit rates.

Novel proteins
Good-for-the-planet brand claims seem to dominate the sustainability story
of pet food, and novel proteins are nothing to bark at. Last October, Wild Earth,
Inc., Berkeley, Calif., launched a dog treat line made with cultured koji (Aspergillus oryzae), an ancient Asian protein and member of the fungi kingdom
containing all 10 amino acids essential for dogs. Then, in August 2019, the
company launched a meatless complete-and-balanced diet for dogs that utilizes yeast protein as a main ingredient and source of protein.
In March 2019, Because Animals, Philadelphia, announced the development of pet treats containing lab-cultured meat - a meat-alternative protein
made from mice cells. The company said it plans to debut its first product, a
cultured mouse meat cat treat, in early 2021.
Jiminy's, a Berkeley, Calif.-based pet treat manufacturer using crickets as
a sustainable source of protein, launched two complete-and-balanced insectprotein dog foods. Good Grub includes insect protein powder, while Cricket
Crave includes cricket protein powder. Montreal-based dog food company
Wilder Harrier offers an insect protein-based pet diet as well. Most of the diet's
protein comes from the inclusion of black soldier fly powder and oil, which is
supplied from Canadian insect-rearing facilities.
As the market is introduced to the promise of new ingredients for pet diets,
whether they are derived from yeast, lab-grown meats or insects, the pet food
and treat industry is sticking to one important tradition: growth.

History of growth
For more than 10 years, the industry has delivered growth that keeps investors' tails wagging. The American Pet Products Association, Stamford, Conn.,
said pet food has grown year over year since 2007 by at least 3.7% and as
much as 10.7%. Although dry kibble still dominates the U.S. pet food market with 72% of sales, according to consumer goods market research firm
Packaged Facts, the increased focus on pet wellness has pet owners feeding a
broader range of products to their pets.
While dollar sales for dog food continue to trump cat food sales, food for felines
has grown and is projected by Packaged Facts to continue growing at a higher
rate than dog food. In 2020, cat food sales are projected to grow 3.2% to $9.6
billion, while dog food sales are expected to grow 2.5% but still lead the pack
with $19.2 billion. According to Euromonitor, the growth in global cat treats sales
led the pack with a compound annual growth rate (CAGR) of 9% between 2013

Corporate Profiles

LEADING DOG

biscuits/treats/beverages
vendors
1
2
3
4
5
6
7
8
9

Big Heart Pet Brands
Nestle Purina PetCare Co.
Mars Petcare
Tyson Pet Products, Inc.
PetMatrix L.L.C.
Ainsworth Pet Nutrition
The Blue Buffalo Co.
Waggin' Train L.L.C.
Salix Animal Health L.L.C.
Private label
Total

Dollar sales
$826,065,275
$384,384,010
$209,315,828
$173,955,602
$145,645,658
$74,817,126
$70,526,205
$55,532,800
$46,374,606
$360,731,254
$2,691,298,743

% change
from
year ago
1.3%
-6.5%
11.1%
13.4%
16.7%
15.8%
189.7%
-16.1%
0.6%
17.8%
7.0%

LEADING DOG

biscuits/treats/beverages
brands
1
2
3
4
5
6
7
8
9

Milk-Bone
Pup-Peroni
Purina Beggin' Strips
Canine Carry Outs
PetMatrix DreamBone
Pedigree DentaStix
Nudges Jerky Cuts
Purina Waggin' Train
Nudges Grillers
Private label
Total

Dollar sales
$251,930,803
$149,153,546
$140,009,617
$127,518,428
$106,679,735
$91,660,330
$81,252,534
$55,532,800
$51,869,719
$360,731,254
$2,691,298,743

% change
from
year ago
5.3%
1.2%
-7.3%
5.0%
17.9%
-12.0%
20.6%
-16.1%
11.4%
17.8%
7.0%

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.

and 2018, followed by dog treats with a 5% CAGR during the same period.
Many new pet food formats, such as dehydrated or freeze-dried, are fetching
premium prices, making them an attractive brand extension option. A 100%
freeze-dried kibble recipe on average costs 1,587% more per pound than
traditional dry kibble, according to Packaged Facts, with 100% freeze-dried
costing an average of $32.55 per lb and dry kibble averaging $1.93 per lb.
Pet food and treats with functional claims that promise to support joints, skin and
coat health, endurance and digestion - just to name a few - are gaining in popularity. Mirroring the human food market, products containing hemp, including cannabidiol (C.B.D.), are exploding and far outpacing the regulatory agencies' policies
on these ingredients - just another area where this industry is breaking the rules.
As more traditionally premium and super-premium brands take an omnichannel approach, retailers - both traditional and online - are competing with
house brands for shelf space or online position. Novel ingredients are grabbing
the headlines, processors are learning how to navigate an increasingly complex
market, and top brands are steering their products into sales success. CP

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