“We remain very bullish on the industry”

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“2008 is gradually drawing to a close. What sort of a year has it been so far for your company? Certainly it has been a challenging year in that we have seen price dislocation out of China and a slowing economy in the USA. As a global company we have some built-in natural currency hedges and this has helped us smooth out the increasing volatility that took place in currencies. Within our main markets, pet ownership has remained flat and there is continued retail consolidation. This requires all manufacturers to be nimble and competitive and offer unique products with excellent service. We have invested heavily in our infrastructure and have seen our service levels continue to improve year in and year out. Our investment in product development and category management has started to pay off as well and we are satisfied, as four out of the five largest markets have reached record sales levels this year. In which countries is business best for your company at present and in which is it not so good? Back in February 2007 we announced that we would also sell directly to US pet dealers. This was a major change in our distribution policy and it was not taken lightly. In 2008 we have seen a slow-down in the USA while our trademarked Dealer Direct programme continues its roll out. Not the best timing, but our sales are tracking very close to budget. The Hagen story of protected market pricing via our Minimum Advertised policy as well as selling through restricted sales channels is gaining momentum. Our overall European business continues to grow – fuelled by some key winning brands and by strong sales within the new Europe. Our traditional strength within Canada has seen some challenges as we focus all of our resources on our distribution activities and have stopped investing in retail activities. However, this was not unexpected. In its motto for Interzoo, your company called for more innovation and more design input with regard to pet products. How does Hagen intend to put this call into practice? Our slogan of “for Innovation, for Design, for Quality, for Pets” was not introduced without years of background activity being in place! We have been working diligently on these areas – the main point being that good design is based on provocative shape that is functional. The function here is twofold – care of the animal and the ease with which the owner interacts with that animal. Using consumer research, our…