Since acquiring the majority of Procter & Gamble's European pet food business on 1 January 2015, Spectrum Brands has succeeded in considerably increasing sales of both the Iams and Eukanuba lines, according to Bernd Weisser, director responsible for the pet division in central Europe at the company. Retail demand for the cat food products in particular is very high.
"The acquisition of the pet food business from Procter & Gamble was the right decision both economically and strategically." Weisser says that the Iams cat food brand was listed by countless European supermarkets and drugstore chains, the confidence of breeders in the Iams and Eukanuba brands was restored and the company also scored its first successes in the speciality retail trade.
For Bernd Weisser, Iams and Eukanuba open the door to further growth of the company in the lucrative complete food segment, which is new territory for Spectrum Brands. "Both Iams and Eukanuba enjoy a high level of brand recognition, and we can build on that," adds Weisser.
New structures
In the last year, Spectrum Brands has created the structures to guarantee the operational integration of the new brands and the goods procurement. In parallel to the integration process, the company entered into closer dialogue with retailers and consumers to get to know and understand their needs better. One topic that was raised repeatedly by retailers was their desire for reduced minimum purchase quantities, an issue on which "we will be very flexible", says Weisser. Another much-discussed subject in the retail trade was its expectation that Spectrum Brands would be active in the market and bring more innovations onto the market for Iams and Eukanuba in future. In this regard Weisser believes that the trade is "preaching to the converted": "We want to set the pace in the market. Our priority is focusing on the owner-pet relationship in our market presence." The company aims to invest heavily in POS marketing and in consumer advertising; it intends to be present in all classic media apart from TV, and digital advertising is to be expanded.
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