Iams notches up strong growth

In order to operate successfully in the pet food business, Iams Pet Food intends to look at utilisation of all possible channels of distribution according to what is required by the marketplace. The grocery trade is also to be included in selected countries. At the same time the company intends to adhere consistently to its twin-brand strategy: the "Eukanuba" brand exclusively for the specialist trade and the "Iams" brand for the specialist trade and other channels of distribution like grocery retailing.
Roberta Palazzetti
Success has so far proved the company right. Iams Pet Food succeeded in growing its market share in terms of value from 8.7 per cent in 1999 to 12.8 per cent in August 2001 through entering the US grocery retailing sector. This means that Iams has pu-shed into second slot behind Nestlé/Purina and ahead of Heinz, Hill's and Mars on the list of the US market's most successful pet food manufacturers, who between them account for a market share in excess of 34 per cent in the USA. And as Roberta Palazzetti adds, the slump that so many had prophesied in the specialist trade simply did not happen following the company's entry into the grocery retailing business. On the contrary, Iams Pet Food succeeded in increasing sales of its "Eukanuba" brand for the specialist market in American pet stores by more than 10 per cent.
Furthermore, the European head of Iams emphasises that the group's start-up in the UK's grocery retailing sector, which took place nine months ago, is also going well: the "Iams" brand was present in 80 per cent of stores within three weeks. Although the launch of Iams in grocery re-tailing in Great Britain was preceded by fierce discussions within the specialist trade that boded no good for future development, feelings soon calmed down again. As was the case in the USA as well, the theatricals in the run-up to the launch proved to be merely a storm in a teacup. At all events, there were no spectacular losses in the specialist trade, according to Roberta Palazzetti. The market share achieved by the specialist trade in the UK remains unchanged at approx. 45 per cent  one of the reasons for which is that there has been no change to the strong support that Iams Pet Food continues to offer the specialist pet trade, in the opinion of Roberta Palazzetti.
The European headquarters of Procter & Gamble, where Iams is also located.
The third country selected for entry on the grocery retailing market is Italy, where Iams Pet Food also…