Pet Food Archives - Go-to resource for the global pet industry | GlobalPETS https://globalpetindustry.com/topic/pet-food/ Fri, 22 Dec 2023 16:40:59 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.2 https://globalpetindustry.com/wp-content/uploads/2023/12/cropped-GlobalPETS_brandmark_rgb-32x32.png Pet Food Archives - Go-to resource for the global pet industry | GlobalPETS https://globalpetindustry.com/topic/pet-food/ 32 32 General Mills’ pet portfolio posts negative performance https://globalpetindustry.com/article/general-mills-pet-portfolio-posts-negative-performance/ Fri, 22 Dec 2023 16:40:26 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=101057 General Mills’ pet segment brought in a net revenue of $569.3 million (€518.7M) in the 3 months to 26 November 2023. This is 4% less than last year when it posted $592.9 million (€538.9M).

Organic net sales also went down 4%. Sales of wet pet food declined the most, while treats noted a double-digit rise compared to the same period in 2022.

The American manufacturing giant attributed the dip to “lower pound volume, partially offset by favorable net price realization and mix.”

“We have more work to do to navigate through the current challenging category dynamic and return the business to consistent topline growth,” says CEO and Chairman Jeff Harmening.

On the other hand, the segment’s operating profit rose by 18% to $102.5 million (€93.3M). The company’s global operating profit during the quarter increased by 2%.

In the 6 months leading to the end of November, net sales in the pet portfolio fell 2% to $1.14 billion (€1.03B) while operating profit increased by 2% to $213.7 million (€194.5M).

General Mills acquired dog and cat supplement company Fera Pets in November with the aim of bringing a “health-focused” dimension to the firm’s pet portfolio.

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How Musti ramped up business by 9.5% in a year https://globalpetindustry.com/article/how-musti-ramped-up-business-by-9-5-in-a-year/ Thu, 21 Dec 2023 14:25:49 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100690 Musti posted net sales of €425.7 million ($464.5M) in the 12 months leading up to September 2023, up from €391.1 million ($428.3M) during the same period in FY2022.

Food and consumables represented over 70% of sales and remained strong sales pillars for the company. Most sales (76%) were performed in-store. Online sales accounted for 23% of Musti’s business, a slight increase of 1%.

Operating profit also showed a positive incline of nearly €7 million (€7.6M) to €37.8 million ($41.2M).

The retailer’s Annual Report 2023 points out that the average spend per loyal customer increased to €182.7 (€200) despite the effects of the unfavorable currency exchange rates. A year ago, the average expenditure was slightly lower, €181.5 (€198.9).

The number of loyal customers from October 2022 to September 2023 increased by 6.1% to 1,543 thousand across Finland, Sweden and Norway.

New pet food factory

The complete acquisition of Premium Pet Food Suomi Oy’s pet food plant in Lieto, Finland, earlier in the year is one of the drivers behind these numbers.

According to CEO David Rönnberg, the integration of the new factory is going “very well.”

“The benefits, both financial and operational, are already visible. The investment in the factory has strengthened our commitment to sustainably produced products and will be a key success driver going forward,” he says.

Musti believes that the investment in the factory has strengthened their commitment to sustainably produced products and “will be a key success driver going forward.”

Potential acquisition

After Portuguese multinational Sonae entered a bid of €868 million ($947M) to take over the Finnish company, a consortium has been formed for the voluntary recommended public cash tender offer of all outstanding shares in Musti Group.

The offer price is €26 ($28.3) cash settled for each share validly accepted during the offer. Musti’s Board of Directors has unanimously decided to recommend that the company’s shareholders accept the tender.

The offer period began on 18 December 2023 and will expire on 5 February 2024 unless there is an extension.

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Zolux: rebranding and market consolidation in 2024 https://globalpetindustry.com/article/zolux-rebranding-and-market-consolidation-2024/ Wed, 20 Dec 2023 14:49:35 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100258 French pet product supplier Zolux has unveiled its new brand image to celebrate its 90 years of existence.

The company wants to refresh and modernize its appearance with a new logo. “The new logo with the hummingbird refers to our historical brand universe: animals. It also refers to our very first market since Zolux started by selling birdseed mixes in 1933,” says a company spokesperson.

Aside from rebranding, the firm wants to consolidate in 2024 the recent investments that it has made in different European countries.

European business

GlobalPETS learned that the company wants to focus on accelerating its European expansion after acquiring the CAT-GATO production facility earlier this year.

The company explains that after opening earlier in the year a branch in Spain and Portugal, which was settled after cooperation from an ornamental fish distributor, the business in the Iberian Peninsula is gaining at an “expected pace.”

Zolux expects to integrate new machines and skills into the hygiene department of its production plant in Péronne (145 km north of Paris). “We just obtained the IFS Food certification for the food department of this factory, which allows us to meet the highest quality standards in the manufacturing of food products,” concludes a company spokesperson.

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Europe proposes new rules on the welfare and traceability of pets https://globalpetindustry.com/article/europe-proposes-new-rules-welfare-and-traceability-pets/ Tue, 19 Dec 2023 14:46:49 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100254 The European Commission has presented a new legislative package on the welfare of dogs and cats, including a new EU standard for breeding, housing and handling of dogs and cats in pet stores, breeding establishments and shelters.

The new proposal has laid out the main points it will address, which involve ensuring minimum common animal welfare standards for breeding. This includes the keeping and placing of dogs and cats bred or kept in establishments on the market.

The legislative text also proposes strict traceability requirements, together with automated checks for the online sale of animals. According to the EU Commission, this will help authorities control the breeding and trade of dogs and cats and buyers to check that the identification and registration process is correct.

Brussels officials expect this new regulation to resolve the divergence between Member States on animal welfare standards for the professional breeding, keeping and selling of dogs and cats.

Countries will have to report every 3 years to the European Commission on the application of the new set of rules.

Online trade and registration

According to official figures, trade in dogs and cats has grown considerably in recent years and now represents an annual value of €1.3 billion ($1.4B).

The proposal establishes a mandatory identification and registration of dogs and cats in national databases to fight illegal trade and better control animal welfare conditions.

The estimated number of pet owners who purchased a cat or dog online is around 60%. Those acquiring an animal through online platforms will now be able to verify the authenticity of the animal. The prospective owner can do this by cross-checking identification and registration through a website connected to national databases.

Reducing animal suffering

Non-EU countries exporting dogs and cats into Europe must also register animals accordingly and fulfill the basic welfare requirements.

The body exporting the animal must provide the person acquiring it proof of its identification and registration and list its vital information, for example, breed, sex, country and date of birth.

Under the stated guidelines, animals kept by breeders and sellers must meet minimum requirements to ensure that their needs are met and that they are healthy when passed to their new owners.

Some conditions that must be adhered to include providing dogs and cats with the necessary quantity and quality food to receive proper nutrition and hydration. In addition, the EU Commission wrote that it is vital to ensure ease of movement and to keep the animal in a safe and clean environment.

Europe also wants to establish stricter limits on the maximum breeding frequency and age of the animals that can be used for breeding.

Next steps

The Federation of Veterinarians (FVE) and other associations recently called EU officials to publish the new proposal.

“The veterinary profession has long been working towards and calling for EU rules to protect the welfare of dogs and cats, including mandatory identification and registration,” says Nancy De Briyne, Executive Director of FVE.

The legislative text will now be submitted to the European Parliament and the Council for consideration. The European Food Safety Authority (EFSA) will deliver a scientific opinion on the proposed measures by March 2025.

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Chewy to open first veterinary practice in Florida https://globalpetindustry.com/article/chewy-open-first-veterinary-practice-florida/ Tue, 19 Dec 2023 14:45:45 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100252 Chewy has launched its first pet health practice called “Chewy Vet Care,” offering routine appointments, urgent care and surgery. It is expected to launch in South Florida in early 2024 and then expand to other states.

The company told investors it plans to open between 4 and 8 new practices by the end of next year.

The practices will be supplemented with Chewy’s custom-built open platform, which can be applied both to Chewy Vet Care and third-party partner practices. According to Mita Malhotra, President of Chewy Health, expanding into veterinary care is a “natural step” in Chewy’s evolution.

Chewy Vet Care is another addition to Chewy’s pet health portfolio, which includes Connect with a Vet, a pet pharmacy and tele-triage service, and CarePlus, an insurance branch.

$3 billion

The announcement comes just a few months after retailer giant Walmart announced the opening of a new pet service center in Georgia.

According to the latest figures, Chewy Health made over $3 billion (€2.7B) between Q3 2022 and Q3 2023. Internal research conducted by the retailer suggests that 50% of US pet parents would “definitely” or “probably” want to switch to Chewy Vet Care clinics if presented with this service.

Warning for unapproved animal antibiotics

Chewy has also come under fire recently as it received a warning from the U.S. Food and Drug Administration (FDA) for selling products containing unapproved antibiotics and other antimicrobial drugs for animals, such as penicillin and amoxicillin.

The FDA warns that these could potentially “contribute to the development of antimicrobial resistance, which affects both human and animal health.”

The retailer has been granted until the end of the year to state how they will address the violations, failure to which may result in the regulator taking legal action, which may include product seizure or a court order to stop the distribution of unapproved products.

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Australia’s competition regulator not to oppose Woolworths’ acquisition of Petstock https://globalpetindustry.com/article/australias-competition-regulator-not-oppose-woolworths-acquisition-petstock/ Mon, 18 Dec 2023 14:43:07 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100248 The Australian Competition and Consumer Commission (ACCC) has declared that it will not oppose Woolworths’ acquisition of 55% of Petspiration, the owner of the retail chain Petstock.

Officials concluded that it is unlikely for Woolworths, Australia’s largest retail group, to leverage its retail position into the specialty pet industry in an anti-competitive way.

“Market feedback indicated that specialty pet retail and grocery are distinct channels in the pet industry, and specialty pet retail stores have a very different product and service offering to supermarkets and discount department stores,” says the ACCC’s Chair Gina Cass-Gottlieb.

The ACCC accepted the pet retailer’s proposal to divest 41 specialty pet retail stores, 25 co-located veterinary hospitals, 4 brands and 2 online retail stores to Woolworths’ portfolio.

Petstock is Australia’s second-largest specialty pet retailer, with over 270 stores.

The investigation

The ACCC launched an investigation earlier this year after voicing concerns about the negative impact of the operation valued at AU$586 million ($392M) and some acquisitions by Petstock that the competition authority was not notified of.

Smaller competitors were concerned that this purchase would enable the retail giant to leverage its buyer power into pressuring suppliers to stock key specialty products in its supermarkets. The ACCC points out that most suppliers who supply both Woolworths and Petstock were not concerned.

Australian law firm Clayton Utz says the ACCC’s decision to “publicly investigate Petstock’s historical acquisitions of competitor stores” is “rare.”

The company explained that the move signals a “more interventionist approach to merger clearances by the ACCC, which is advocating for merger reform, including mandatory notification.”

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Malaysian insect player receives green light to export products to Europe https://globalpetindustry.com/article/malaysian-insect-player-receives-green-light-export-products-europe/ Fri, 15 Dec 2023 14:41:53 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100246 A subsidiary of environmental waste firm Veolia Group, Veolia Bioconversion, recently gained approval to export insect meal and insect oil to the European Union after Malaysia’s Ministry of Agriculture approved its ‘Entomeal’ and ‘Entolipid’ insect products for their applications in pet food and aquaculture.

The company gained a TRACES EU digital certification supporting the importation of animal products into the European Union, and it is reportedly one of the few Asian insect meal producers to be part of this scheme.

Veolia says they are “thrilled” to provide a “sustainable alternative source of protein to the European market after recognizing an increasing requirement for sustainable and functional ingredients in the pet food and the aqua feed industry.”

Meeting increasing demand

Veolia aims to supply the European market with a “consistent,” “high-quality” supply of insect products and fill the rising demand for the popular protein alternative.

“With our authorization, we can meet the growing market demand for sustainable alternative protein sources primarily coming from the pet food industry,” points out Fabrice Latchoumanin, General Manager at Veolia Bioconversion Malaysia, in conversion with GlobalPETS.

Latchoumanin reiterates that Malaysian authorities’ interest in insect-based products has more global value than just being pet food-oriented. “It is part of the government’s efforts to find ways to alleviate import dependency and increase food security in the country,” he emphasizes.

Veolia Bioconversion says it operates one of Asia’s largest industrial insect facilities, with an annual production capacity of 3,000 tons of insect products. The facility converts black soldier fly larvae (BSFL) into insect protein meal, insect oil and organic fertilizer.

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Picart opens new production plant in Barcelona https://globalpetindustry.com/article/picart-opens-new-production-plant-barcelona/ Fri, 15 Dec 2023 14:40:34 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100244 After investing €12 million ($12.9M), Picart has launched a new 12,000-meter squared facility in Llinars del Vallès in Barcelona.

“These new facilities are a step forward in quality production with a renewed commitment to sustainability and respect for the environment,” says Joan Icart, CEO of Picart.

The company says this new plant marks a significant milestone for the firm. At the same time, it will allow the business to boost its capacity threefold.

In an interview with Interempresas, Icart said that the location for the new plant is “relatively close” to its previous facilities—about 7 or 8 kilometers away—which helps with synergies. He also highlighted that the new facility will facilitate access to both the Spanish and European markets.

Natural gas

In its design, Picart has devised a way of using natural gas as fuel. Furthermore, 70% of the plant’s energy will come from solar panels.

Thanks to its sustainable features, the plant will reduce its carbon dioxide emissions by 280 tonnes each year.

According to the company, it achieved a turnover of €14.9 million ($16M) in 2022.

The family-run business was started in 1953 by Icart’s parents, who focused on cereals and farm-based animal feed. However, when the current CEO and his brother became more involved in the company, they expanded into the pet industry.

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Arcaplanet: new digital features, more stores and sustainable targets https://globalpetindustry.com/article/arcaplanet-new-digital-features-more-stores-and-sustainable-targets/ Thu, 14 Dec 2023 14:36:39 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100240 2023 is about to end, and Arcaplanet is closing the year and marking it with “constant growth,” where it served over 2 million customers and has consolidated its presence in the Italian pet retail market.

A new app

Arcaplanet took its relationship with its customers to the next level by implementing a new smartphone app when the online channel was growing.

The new tool aims to become an “inseparable companion for pet owners,” the company says. The objective is that the app allows customers to make purchases online (and re-order past ones) but also use the Arcacard customer loyalty scheme and receive coupons and personalized offers.

“The new app will allow the customer to not only purchase products on our e-commerce platform but also use the discount coupons in-store. Our loyalty program will become digital—we will no longer distribute plastic cards,” said Arcaplanet CEO Nicolò Galante in a recent interview with GlobalPETS.

Business and consulting firm Casaleggio Associati concluded that Arcaplanet was the most popular Italian e-commerce platform in November 2023, just after Zooplus.

In 2022, the company’s e-commerce business accounted for €40 million ($43.8M) of Arcaplanet’s revenue. This was 50% more than the previous year.

More stores

Despite online playing an important role in Arcaplanet’s ecosystem, the Italian pet retailer still holds in-store as its top priority.

2023 will end with 52 more stores than last year, bringing the total amount to 553. They also aim to increase their pet specialists to 2,900 by the end of the year.

“As always, in-store pet specialists are at the center of customer service, and the company is aiming for ever-increasing countrywide coverage to be closer to customers,” says the retailer.

Stores will also play an important role in 2024 when it comes to services as the company plans to expand its pet wash services from the current 82 locations to 100 next year.

The retailer will end 2023 with 300 new jobs and aims to add an additional 300 next year.

Pet insurance and vet business

Nicolò Galante admitted a few months ago to GlobalPETS that it was “a big opportunity” for the retailer to tap into the premium segment despite acknowledging that the approach to healthcare by Italian pet parents is still “extremely reactive.”

The Italian retailer acquired 3 veterinary practices in October, 2 of which were from the Happy Friends brand and one from Mypetclinic.

This year, Arcaplanet also launched an insurance scheme working with insurance firm ConTe.it.

Sustainability 

In 2023, Arcaplanet undertook a process to reduce its environmental emissions by around 50%, including the use of renewables. According to the company, 80% of their energy needs are fulfilled thanks to this kind of energy.

Next year will be dedicated to the circular economy, with the target to transition over 60% of its private-label dry food brands into recycled and recyclable packaging.

This year, the retailer tested a “new generation” of stores featuring reduced environmental impact and reduced energy consumption and forecasts to expand this concept to the entire network in the first part of 2024.

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Brazilian bill increasing taxes on non-essential products excludes pet food https://globalpetindustry.com/article/brazilian-bill-increasing-taxes-non-essential-products-excludes-pet-food/ Tue, 12 Dec 2023 14:32:08 +0000 https://globalpetindustry.com/?post_type=magazine_articles&p=100234 Pet food will not be deemed a “superfluous” product in Brazil’s second-most populous state, Minas Gerais, thanks to the intervention of the Brazilian Association of Pet Products Industry (ABINPET).

Bill 1295/23 aims to increase the ICMS (Tax on Circulation of Goods and Services) by 2% for non-essential products. This includes alcoholic beverages, cigarettes, soft drinks, perfumes, smartphones, cameras and, initially, pet food.

ABINPET’s lobbying successfully established the importance of pet food for the health and well-being of animals, as well as the impact that a price increase could have on homes across the state.

“With the articulation of ABINPET with some state deputies and NGOs, we were able to remove pet food from this list of superfluous products, as well as establish in law the essentiality of pet food,” says a spokesperson of the industry association.

Tax burden

ABINPET’s CEO José Edson Galvão de França explains that 3 taxes—IPI (tax on industrialized products), PIS (Social Integration Program) or COFINS (Contribution to the Financing of Social Security)—are already levied along with the ICMS on pet food, increasing its final product value by 50%.

“The bill discussed in the State of Minas Gerais intended to increase the ICMS by 2%, which would imply a tax burden of approximately 25%,” de França says.

He added, “The general understanding for the Brazilian Federal Revenue Service is still that pet food is a superfluous product, even if statistically, today there are two pets for each household in Brazil.”

Legally obtaining a non-superfluous status for pet food is thus seen as a “historic achievement” for the organization, and they hope that this will serve as a “jurisprudence” for more Brazilian states to also review the definition of pet food within the tax structure.

According to predictions from the Instituto Pet Brasil (IPB), the Brazilian pet industry generated R$60.2 billion ($12.1B/€11.2B) in revenue in 2022.

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