New products, new ideas

To say that the premium pet food segment is crowded with start-ups would be something of an understatement. Every week seems to bring a new brand to this space. Freshpet, based in Secaucus/New Jersey, is one of the leaders of the pack, with forecast sales of $100 mio next year, boosted by a May 2013 distribution deal with PetCo. Freshpet makes fresh, 100 per cent natural refrigerated dog food and has demonstrated significant marketing savvy, most notably in the form of its “Protest” advertising campaign. This highlights the product’s “unique benefits” and contrasts the brand with its “preservative-laden” rivals. It has also been assiduous in courting retailers. According to Scott Morris, founder and president of Freshpet, a major challenge for the business was to convince retailers not just to let it install branded refrigerators in the pet aisles, but also to accept deliveries via meat distribution systems. He said that one of the things that had convinced supermarkets was the fact that Freshpet is sold in smaller quantities and that most products must be used within seven days of opening – leading to more trips to the supermarket. With premium products significantly outperforming the rest of the dog and cat food market in recent years, it is not hard to see why this segment is becoming so crowded.

Private label has long dominated the economy segment in dog and cat food, but has struggled to gain traction at higher price points. Whole Foods Market, a supermarket chain in upmarket Austin/Texas, is hoping to change this with its Whole Paws range of premium dog and cat food. This was launched in September 2013, replacing its 365 Everyday Value brand. Known as a seller of organic and locally sourced products, making it adored by affluent “foodies”, Whole Foods Market has the kind of brand equity most of its rivals can only dream of. This makes it particularly well placed to break the virtual stranglehold that brands continue to enjoy in this segment, particularly in comparison to Wal-Mart (which has also launched a premium dog and cat food brand), where the emphasis is very much on value.

2013 has turned out to be a very good year for premium…