INNNOVATE - Mars Announces US$100M Fund

Leap Ventures and the Companion Fund are Supported by US$100 Million Venture Investment from Mars Petcare

Mars Petcare unveiled two new programs to support startup innovation and the next generation of disruptors in the pet care industry. Leap Venture Studio (Leap) in partnership with Michelson Found Animals and R/GA is the first accelerator focused on the future of pet care, and Companion Fund is a $100 million venture capital fund in partnership with Digitalis Ventures. 

"We're excited to support entrepreneurs and innovators in creating new products and services that deliver on our purpose: 'A Better World for Pets,'" said Poul Weihrauch, President, Mars Petcare. "The extraordinary opportunities of connected technology and data are open to all. Match them with the expansive reach, resources and core capabilities of a company like Mars, and together we can create a powerful force for change."

These programs are new ways of reaching innovators and entrepreneurs whose companies are at various stages, from ideation to execution to scale.

"Our ambition is to become a partner of choice for everyone willing to change the rules of the game in pet care. Mars Petcare is leveraging our own success stories, Whistle and Wisdom Health, to identify and support the next wave of industry disruptors," said Leonid Sudakov, President of Connected Solutions, the global ventures, consumer technology, data and analytics division of Mars Petcare. "Mars Petcare's unique global scale and network of connected businesses will support the founders in taking their ideas from whiteboard to pets and their owners' homes."

About Companion Fund
Companion Fund is a $100 million venture capital fund managed by Digitalis Ventures. Companion Fund will provide startup capital and support to entrepreneurs addressing the needs of pets, pet owners and vets. The fund will focus primarily on the investment opportunities in Digital Health, Diagnostics, Nutrition and Services, but is excited to explore new areas of need with exceptional entrepreneurs. Digitalis Ventures has offices in New York City, San Francisco, Los Angeles and London.

About Leap 
Leap is the first startup accelerator focused on pet care innovation, led by Mars Petcare, R/GA and Michelson Found Animals. Leap is based in Portland, Oregon, at R/GA's office in the heart of the innovation-centric Pearl District. Leap is targeting early stage startups and will be split into two cohorts of six companies each. A customized team of R/GA's award-winning strategists, technologists, designers and consultants will collaborate with the startups to help execute their business plans and prepare them for future milestones, including fundraising, pitching and business development. The startups will receive mentorship from industry executives and access to world-class partners.

BRAND - Mars Petcare Dreams Big to Create a Better World for Pets and Customers

Leonid Sudakov, Mars Petcare on 21st Century Brand Connectivity at 2018 IAB Leadership Meeting

Published Feb 13, 2018 (4'06")

Mars Petcare is reshaping their business by becoming more consumer centric and daring to dream big. Building a better world for customers and their pets creates a win for everyone.

YourSAY™ 2017.1 - Corporatization of the Veterinary Industry Brings Hope Despite Some Distrust

Canada’s Thought Leaders Ponder Veterinary Industry Corporatization

The YourSAY™ public opinion poll 2017.1 is reported.

This report summarizes the YourSAY™ survey Powered by Urban Animal Corporation™ (formerly PetLynx™) that fielded March 1st-8th, 2017.

This survey captured public opinion related to several articles InfoStream has published on vet clinic acquisitions:

Mars Petcare Acquires BluePearl Veterinary Hospitals 

VCA Antech Acquires Associate Veterinary Clinics

VCA to be Aquired by Mars Inc.

And explored the pros and cons in:

Pros and Cons: Corporatization of the Veterinary Industry.

The purpose of the YourSAY™ 2017.1 survey was to discover what thought leaders in the urban animal industry believe are the positive and negative aspects of the growing trend of animal healthcare delivery moving towards large corporations and away from the owner/managed independent clinician.

Thirty-five respondents participated in the YourSAY™ 2017.1 forum out of 450 recipients and featured a variety of respondents from various backgrounds within the animal healthcare industry and at different levels of management within the industry.

Highlights of YourSAY™ 2017.1:

• A strikingly similar number of participants viewed the trend toward large corporate entities and away from owner/managed independent clinics as either positive (37%) or negative (43%). The initial response to this topic is interesting considering the polarizing opinion in the questions that followed.
  
  
• When asked about the corporate influence of commercial interests, a staggering eighty percent (80%) expressed concern to some degree with regards to the effect on animal healthcare services, a smaller percentage expressed that they are not at all concerned (20%). 
  
  
• A clear majority of individuals (66%) view the rise of large corporate providers as inevitable due to the modern healthcare demands of specialised service needs in regards to equipment, human resources and sophisticated technology which are the domain of larger, and typically wealthier, clinics and hospitals. Twenty-nine percent (29%) of individuals believe that a rise in corporate providers in not guaranteed.
  
  
• Owner/Managed independent clinics are likely to be sought out sixty-three percent (63%) of the time, while local clinics backed by a large corporation are sought out with thirty-four percent (34%) likeness. 
  
  
• It is interesting to note that when asked what type of animal healthcare service providers do respondents actually use; fifty-four percent (54%) receive services from an owner/managed independent clinic, fourteen percent (14%) from a local clinic backed by a large corporation, and twenty-two percent (22%) from a combination of both. The last either using some other option of health services (3%) or do not use animal health services at all (6%).
  
  
• When asked about any foreseen benefits of the corporate influence on animal healthcare services, majority of respondents believe that there are more harms than benefits to be found (40%). While there are many benefits cited as relating to corporate influence such as financial resources, access to specialized equipment and technology, better standards of care, employee training and benefits, and a support system of human resources, there was still a looming tone of distrust towards the corporate influence of animal services; ethical management, focus on the bottom line over quality of care, and the loss of independent decision making for individual clinics.
  
  
• When asked about experiences working for a local clinic backed by a large corporation; many individuals (28%-43%) had experienced some type of positive experience due to the corporate impact; input from other successful professionals on models of service, team training and development, advancement opportunities, or an increased benefit package. A smaller percentage of individuals (10%-24%) experienced negative impacts; pressure to recommend services that one did not agree with or thought unnecessary, requirement to follow protocol rather than provide treatment based on individual client, or stressful expectations to meet corporate financial targets. 
  
  
• Forty-five percent (45%) of informants believe that there is serious concern over the corporatization of veterinary clinics putting the owner/managed independent clinics out of business. However, a substantial percentage (23%) believe that the quality of animal healthcare services provided and the loyalty of clients will ensure the success of a business regardless of ownership and that there will always be room for both types of practices.

Demographics of YourSAY™ 2017.1:

• Gender: 51% Female, 37% Male
• Age: 14% 21-35 years old, 20% 36-50 years old, 66% over 50 years old
• Region: 14% Pacific, 31% Prairie, 37% Central, 17% Atlantic
• Pets: 56% Cat owner, 82% Dog owner
• Industry: 11% Animal Welfare, 11% Animal Services, 29% Animal Health & Wellness, 11% Animal Control & Enforcement, 34% Other
• Executive Level: 26% C-Level Executive, 37% Senior Management, 17% Middle Management, 3% Individual Contributor, 14% Other
  
  
  
  

BUSINESS - Pros and Cons: Corporatization of the Veterinary Industry

(Banfield Pet Hospital)

The Mars acquisition of VCA has resulted in concern in some parts of the veterinary community.

There are vets who have felt disenfranchised and restricted by corporatization, and others who feel that corporatization compromises vet care.

Banfield pet hospitals, an earlier Mars acquisition, have faced significant criticism from vets whose practices were purchased and brought under their corporate management.

Banfield was purchased by Mars in 2007, and Mars further expanded into the pet healthcare industry in 2015 with the acquisition of BluePearl.

Although Banfield’s mixed reputation caused some pause for BluePearl executives when Mars approached them, Dr. Neil Shaw outlined some of the benefits of being acquired by Mars.

Some of the benefits that Shaw saw for BluePearl in the acquisition included:  

1. Ability to solicit input from successful professionals in other service industries on how to develop the very best models for service
2. Grow our internal team development/training capability
3. Provide additional advancement opportunities for all team members
4. Hopefully be able to increase our benefit package over time
5. Grow the organization by expanding the number of BluePearl hospitals to reach more pets
6. Increase the efficiency of the referral process for it to have a larger footprint within the veterinary community
   
   

These benefits are among the many reasons that corporatization, controversial though it may be, offers hope for an industry currently struggling with mental health crises and frequent burn-out, the high cost of turnover among veterinary teams, and a changing dynamic when it comes to practice management.

As Today’s Veterinary Practice noted last year, “today’s veterinary practice is no longer part of an insignificant, mom-and-pop industry; instead, it is an exciting, evolving marketplace to which the rest of the world is paying close attention.”

Increasing the support base for veterinarians has the potential to alleviate these pressures on individual veterinarians, and that would be good for everyone from the boardroom to the waiting room to the homes of well-cared-for clients.

The Mars acquisition of VCA is an interesting move, and structurally different than both the Banfield and BluePearl acquisitions.

Unlike both Banfield and BluePearl, which were companies founded by veterinarians, none of VCA’s founders are vets.

Despite this, VCA has gained a reputation that eluded Banfield and although views among the veterinary community are mixed, the company has a reputation for providing consistent quality care in its clinics and hospitals.

If Mars is able to incorporate VCA’s positive reputation and approach to pet healthcare, the merger has the potential to offer significant benefits to both vets and clients.

One of the ways corporatization could work as a positive force, and a focus that Mars will benefit from and hopefully avoid the mixed results seen by Banfield, is to centre veterinarian agency and autonomy – to offer support and infrastructure and business training to the veterinarians, without rigidly dictating how they do their jobs.

This was the main complaint from vets who disliked or distrusted corporatization, and, in the UK, where the agency of individual vets has been preserved within corporatization, the response is much more universally positive.

Simon Innes, the chief executive of CVS in the UK, told The Telegraph, “You don’t really need to dictate to clinicians. The minute you start to do that, is the minute they say no… The idea of the model is that at the business end we create an environment where vets can get on with what they are good at: treating clients. We help them by giving them professional support they need.”

What do you think about the corporatization of the veterinary industry?

Watch InfoStream this week for a YourSAYTM survey and share your views.

About Tiffany Sostar

Tiffany is a published academic, an editor with the Editors Association of Canada, an independent scholar and researcher, and a self-care and narrative coach. She is particularly interested in the intersection of technology and identity - how our tools shape our selves and change our stories, and in how the nature of work is changing as we incorporate more technology into our daily lives.

BREAKING - VCA to be Acquired by Mars Inc.

Mars Inc announced this morning it will acquire VCA Inc.

The acquisition will be an all-cash transaction valued at approximately $9.1 billion and will provide VCA shareholders with US$93 per share for VCA common stock. 

According to the news release from Mars Inc., VCA will operate as a separate business unit within Mars Petcare. The deal is expected to close in Q3 2017.

According to an internal document circulated to employees of Associate Vet Clinics (AVC) in Canada, no changes to the operations, management or employee relationships are contemplated at this time. AVC, the largest owner of veterinary clinics in Canada was purchased by VCA Inc, in 2012. 

Other information services are also reporting this transaction:

Business Insider 

Market Watch

Bloomberg News

BUSINESS - Prescription Pet Foods Face Class Action Lawsuit

A California class action lawsuit alleges that pet food manufacturers Nestle Purina, Mars Petcare, and Hill’s Pet Nutrition, pet supply chain PetSmart, and veterinary chains Banfield Pet Hospital and BluePearl Vet conspired to falsely promote prescription pet food.

The veterinarian writes a prescription for the specialty food which is then filled at a supplier such as PetSmart.

The complaint argues here is no reason for each brand of pet food to require a prescription, as they “contain no drug or other ingredient not also common in non-prescription pet food.”

The prescription pet food sold by Mars, Purina, and Hill’s are not evaluated by the Food and Drug Administration and contain no drugs or other legally controlled substances, the plaintiffs state.

Therefore, according to the class action, selling the expensive pet food as requiring a prescription is unfair and deceptive under California consumer protection laws.

The suit includes veterinary clinics because they write the prescription, the manufacturers who make the food and PetSmart because they sell it.

According to the complaint, Mars owns 79 percent of Banfield Pet Hospital, and PetSmart owns the other 21 percent. Many Banfield clinics are inside PetSmart locations. In addition, Mars owns 100 percent of Blue Pearl Vet Hospital.

In the case filing, plaintiffs stated that they and others had overpaid for the prescription formulations and made purchases that they wouldn’t have if not for the prescription requirement.

“We are aware of the recent lawsuit in Northern California against Mars Petcare US, Banfield, Blue Pearl, PetSmart, Hills Pet Nutrition and Nestle Purina Petcare,” Courtney Suthoff, representing Mars Petcare’s Royal Canin for public relation agency FeishmanHillard, told Petfood Industry. “While we do not otherwise comment on pending litigation, we believe the allegations to be without merit and will defend ourselves accordingly.”

BUSINESS - Forrest Mars Jr., Co-owner of Mars Inc. Dies at 84

(mars.com)

Forrest Mars Jr., co-owner of Mars Inc., who ran the corporation along with his younger brother and sister has died at 84.

While Mars Inc. is largely known for its candy and drinks, its pet food line has consistently been at the top of the sales market.

Mars Jr. is being remembered as a visionary who was at the helm of the company for more than 30 years and is credited with expanding the company’s reach to Russia, Poland, the Czech Republic and China in the 1990s.

“Forrest was a great inspiration to all of us at Mars, Incorporated,” Grant F. Reid, CEO and Office of the President for Mars, Inc., said in a release. “He was instrumental in building our business, while remaining committed to the founding principles of the Company. Forrest will be sorely missed, but his contributions and the legacy he leaves behind at Mars will be long-lasting.”

Forrest Mars Jr. was born August 16, 1931, in Oak Park, Illinois, to parents Forrest E. Mars Sr. and Audrey Ruth Meyer. His grandfather, Frank Mars, founded Mars, Inc., in 1911.

Mars Jr. is also noted for his philanthropy. He supported environmental preservation projects such as the American Prairie Reserve, and numerous projects in support of American history, including the Brinton Museum of Western and American Indian Art in Big Horn, Wyoming, and the Mars Hall of American Business at the Smithsonian’s National Museum of American History.

Mars Inc. was on the list of World's Best Multinational Workplaces in its inaugural year, has provided assistance to pets during disasters, partnered with WikiVet to improve the quality and research of reference materials freely available online to veterinary students, practicing veterinarians and vet nurses, and was an InfoStream newsmaker of 2014 when they acquired most of P&G’s pet food business.

Brands owned by Mars Inc. include Royal Canin, IAMS, Pedigree, Whiska, Eukanuba and more.

BUSINESS - Mars Petcare Purchases Whistle

Whistle, a company that makes smart dog collars that track a pet’s location as well as activity, has been purchased by Mars Petcare.

“Whistle is excited to join the Mars Petcare family. This opportunity connects the industry’s global and technology leaders, enabling a new era of pet care,” Whistle said in a release. “Mars Petcare and Whistle shared a core belief around the importance of pets in our lives, and we look forward to connecting nutrition, health care, and technology to improve the lives of pets and their families.”

Whistle, which has been called the “Fitbit for dogs”, has activity trackers to help you set your pet’s fitness goals, track progress and compare stats to other similar dogs. The location-sharing could also help you find your dog if it ever gets lost.

It’s the first device and app system to combine location-tracking and smart activity monitoring into one simple experience.

Headquartered in Brussels, Belgium, Mars Petcare is one of the world’s leading pet care providers. They own numerous brands including IAMS, Pedigree and Royal Canin.

Mars Petcare Acquires BluePearl Veterinary Hospitals

Mars Petcare is in the process of adding BluePearl Veterinary Hospitals to their business line. Mars Petcare is the fastest growing division of the Mars brand/business. Details of the transaction have not been released but analysts believe Mars will acquire 53 specialty veterinary hospitals to add continuing care to Banfield Pet Hospital clients and others with companion animals. 

BluePearl CEO, Darryl Shaw said, “This agreement is a natural fit for us—Mars is an iconic, family-owned organization with a very significant commitment to pets. Once completed, this exciting development will enable us to make key investments in our people, facilities, systems and infrastructure, allowing us to continue to grow and drive up standards of veterinary care. We will continue to operate as a separate, distinct business unit maintaining our absolute commitment to serving the primary care veterinary communities where we operate hospitals because we know these relationships provide the necessary foundation for the best possible care for our patients. We will also continue our commitment to offer high-quality referral specialty and emergency care and, consistent with our historical model. We will not offer primary care services.”

READ THE FULL ARTICLE

Mars Petcare and WikiVet Now Offering Pet Nutrition Information

New nutritional information is now available for dogs and cats. WikiVet and Mars Petcare have partnered to create new educational material for dogs and cats that highlights nutrition and its role in animal health. Subject matter covered will include nutrition requirements, essential nutrients, role of essential nutrients in physiology, deficiencies, and toxicity. Educational material will feature writings from several pet nutrition experts.

Dr. Richard Butterwick, Principal Nutrition Scientist for WALTHAM Centre for Pet Nutrition, Mars Petcare said, “Nutrition plays a crucial role in the health and well-being of pets. We are excited to combine our expertise in pet nutrition with WikiVet’s dynamic site, driving greater awareness of the important link between nutrition and health.”

Nick Short, Head of the eMedia Unit at Royal Veterinary College said, “We are very pleased to continue working with Mars Petcare and believe these materials will help the veterinary profession strengthen their understanding of cat and dog nutrition and the importance of the right nutrition for a healthy life.”

READ THE ARTICLE

Collaboration promotes preventative healthcare for pets

Earlier this month, WikiVet and Mars Petcare announced a collaboration that aims to improve the quality and research of reference materials freely available online to veterinary students, practicing veterinarians and vet nurses through WikiVet's innovative and expanding veterinary encyclopedia. The collaboration will develop high quality training and reference materials on certain areas of preventative healthcare to increase awareness and complement the growing vet school curriculum in this area. 

"Preventative healthcare for pets is a shared passion for both Mars Petcare and WikiVet. It can greatly improve the quality and length of a pet's life by reducing the risk of developing serious, costly and sometimes, fatal diseases," said Dr. Stephen Harris, Research Manager, Oral Care, WALTHAM® Centre for Pet Nutrition, Mars Petcare. "We are excited to combine our deep expertise in the health and well-being of pets with WikiVet's dynamic site to drive greater awareness of this important subject." 

READ THE NEWS RELEASE 

Mars, Incorporated Announces Changes to Leadership Team

Seasoned Leaders Promoted in Petcare, Food, Sales and Marketing

MCLEAN, VA (September 25, 2014) Mars, Incorporated announced today that Todd Lachman, current President, Mars Global Petcare, has decided to leave Mars at the end of 2014 to relocate his family to San Francisco, California. Todd has been with Mars for 8 years, first leading the Chocolate North America and Latin America business before moving into the lead role of the Mars Global Petcare business. Poul Weihrauch has been appointed as President Mars Global Petcare, effective Jan 1, 2015.

Poul is currently Global President of Mars Food. He also has accountability for Mars Drinks and European Multisales. After 6 years with Nestle, Poul joined Mars in 2000. He has been with Mars for 14 years, and in that time has worked in multiple categories, including Chocolate, Wrigley, Food and Drinks.

Fiona Dawson, currently Regional President of Chocolate UK and Global Retail, will step into the role of Global President, Mars Food with accountability for Mars Drinks and European Multisales. Fiona began her Mars career in Sales in 1988 as a graduate trainee. After many years in Multisales in Ireland, the Netherlands and Belgium, she became the head of the UK Chocolate business in 2005 and has since also added responsibility of the Mars Retail Group.

Andrew Clarke, currently Regional President Petcare for Latin America, will become Mars, Incorporated’s new Chief Customer Officer and a member of the Mars Leadership Team, effective February 15. This is a critical job responsible for driving strategic initiatives related to customers. Coming from Marks & Spencer®, Andrew began with Mars in 2000 in UK Sales and over the next seven years took on increasing responsibility in the function as he moved between the Pet Specialty, Impulse and Grocery teams. Since then, Andrew has taken multiple general manager roles across the business.

Bruce McColl, Mars’ Chief Marketing Officer is being made a member of the Mars Leadership Team. Bruce joined Mars in 1992 in Australia as a brand manager. Over his 22 years in marketing at Mars, Bruce has worked across Mars’ business brands, categories and geographies. His stewardship of Mars global agency relationships and collaboration with our worldwide marketing community have resulted in brand-building, and award- winning marketing that is increasing reach with consumers all over the world.

“We are thrilled to have such great talent within the organization and proud of the growth that these leaders have demonstrated over the years,” said Grant F. Reid, Office of the President, Mars, Incorporated. “These great leaders have an average of more than 19 years of experience in leadership at Mars, and they are a testament to how well our development programs at Mars works.”

Mars to buy most of P&G's pet food business for $2.9 billion

Mars, Incorporated and the Procter & Gamble Company announced today that Mars has agreed to buy the IAMS®, EUKANUBA® and NATURA® brands in major markets for $2.9 billion U.S. This is a strategic move for Mars Petcare to complement its large and growing global Petcare business. 

"We view the addition of the IAMS®, EUKANUBA® and NATURA® brands as exceptionally strategic," said Mars Petcare Global President, Todd Lachman. "This acquisition is a perfect fit with our Mars Petcare vision of making A BETTER WORLD FOR PETS™. The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio."

The geographic regions included in the acquisition, which account for approximately 80% of P&G Pet Care's global sales, include North America, Latin America and other selected countries excluding most European markets. P&G said it is working on alternate plans to sell its Pet Care business in European Union countries. 

"Exiting Pet Care is an important step in our strategy to focus P&G's portfolio on the core businesses where we can create the most value for consumers and shareowners," said P&G Chairman, President and CEO, A.G. Lafley. "The transaction creates value for P&G share owners, and we are confident that the business will thrive at Mars, a leading company in pet care." 

The company is expected to complete the transaction in the second half of 2014, subject to regulatory approvals. 

Mars Petcare is one of the world's leading pet food and veterinary care providers and employs more than 35,000 associates across 50 countries. Upon completion of the transaction, IAMS®, EUKANUBA® and NATURA® brands will join Mars Petcare's billion dollar stable mates PEDIGREE®, WHISKAS®, BANFIELD® and ROYAL CANIN®. 

For further company and financial impact related information, READ THE NEW RELEASE.

Petland Charities pitches in to clean up Sue Higgins dog park

Petland Charities and the City of Calgary are partnering to mobilize a clean-up effort of Sue Higgins Dog Park which was affected by flooding in Calgary in June.

Park clean-up is scheduled for Tuesday, August 20 when pre-registered volunteers will assist in cleaning up debris, repairing fences and bringing the popular park back to Calgarian dog owners. Over 90 per cent of the fences in the park were damaged and roughly 70 per cent were destroyed. Presently, only portions of the park have reopened to the public. 

Justin Brown, superintendent of parks for the City of Calgary, told the Calgary Herald the park was significantly damaged by the flood waters. 

"The entire park was actually under water during high water mark,"he said. "We'll be down here all year, that's for sure."  

In conjunction with the volunteer clean-up, Petland stores in Calgary also hosted an in-store fundraising campaign earlier this month. A sticker campaign and Greenies (Mars PetCare) brand donations raised funds for Petland Charities which provided money to help clean up the dog park. 

Photo Credit

Who in the World is Mars PetCare

It would be hard not to notice the recent acquisitions and developing PetCare Business now owned by Mars, Incorporated. According to Forbes magazine in 2010, Mars  was ranked as the 3^rd largest privately held company in the United States. The company history reaches back through the Wrigley brand and other sales activities to the late 19^th Century. But it was early in the 20^th Century (1911), when Frank C. Mars began to make a ‘buttery’ candy in his Tacoma, Washington kitchen and rode the confections horse to fame and fortune.

The fame and success of the company advanced beyond earthly bounds when M&M’s were selected as the official candy of the Shuttle program. Now Mars has parlayed this success into a new PetCare business that owns strong brands such as those pictured on this page. To understand how this all came to be, one needs to understand the ‘Essence of Mars’. These five principles have created an environment which also won Mars distinction as a Global Top 50 Employer.

So how does Mars intend to gather these brands together and create a better world for pets and people? Watching the video embedded in InfoStream will provide some of the answers.

The Mars PetCare Academy ensures that all Mars PetCare associates understand the goals and aspirations of the PetCare business. This focus seems to have propelled Mars management into acquisitions that move beyond the traditional role of nutrition and manufacturing. Servicing the health and wellness of pets is a direction that may alleviate the commoditization issues that nutrition and manufacturers are now experiencing. Brands like Banfield speak to a broader understanding of the pet client and the evolution of the pet business.

Now you have an understanding of how Mars describes the PetCare business. But of course Brands are more about what others say. Sharing your comments about Mars and the approach it is bringing to petcare are invited and may be entered in the comment section below.