The winds of change

The pet supplies sector has experienced quite a few acquisitions and mergers in the last few years. Scarcely any have had as great an impact on the market recently as the current majority takeover of Vitakraft, a renowned family firm with a long tradition, by private label pet food manufacturer Deuerer, however. This is a done deal, even if the final approval of the cartel authorities had not been given by the time PET worldwide went to press. There is much speculation regarding the reasons behind the sale. Was it prompted by internal family issues? Was it because Vitakraft was in financial difficulties, particularly with regard to its core bird and small animal segments? Or was Vitakraft looking with this sale to clear the way towards the goal it has long pursued of becoming established internationally as a major player in the market for dog and cat food, and thus of competing with Mars and Nestlé Purina? Probably all three factors played a part to some extent. The deal with Deuerer could make sense, even though Vitakraft and Deuerer are as different as two companies can be in terms of corporate culture and history. Vitakraft is a company rich in tradition that was founded in Bremen roughly 170 years ago, with a global spread and a well-known brand. Deuerer, on the other hand, which is run by Hans-Jürgen Deuerer, the dynamic son of the company founder, saw its opportunity in the 1990s. It became one of Germany’s leading pet food manufacturers by supplying discount stores and other supermarkets with dog and cat food. It is a rising star in the pet product industry. Deuerer has something that Vitakraft lacks – production facilities for dog and cat food and extensive know-how in this category. It is rumoured that the fast-growing private label manufacturer from Bretten is even planning to construct a pet food plant in China and thereby consolidate its presence in Asia. Vitakraft would benefit considerably from such an investment; after all, it is not so many months ago that the company established a joint venture with Wanpy, the leading Chinese manufacturer of dog and cat food. And Vitakraft has a brand that is globally respected – something that Deuerer cannot boast. Deuerer and Vitakraft each have sales in the order of € 230-250 mio. Deuerer employs nearly 400 people, while Vitakraft has a workforce of approx. 1 500. Will staff numbers be slashed in Bremen once the cartel authorities have given the takeover their blessing? Probably not, at least not in the…