BUSINESS - Marketing to Millennial Pet Owners

Move over Baby Boomers!

The Millennials are poised to lead the pack in pet product and service purchasing in upcoming years.

First, they like their pets - with 35.2% of America's 75 million Millennials owning a cat or dog, compared with 32.8% of Baby Boomers.

Additional data, also according GfK at Global Pet Expo 2015, shows another 20% in the generation report they intend to get a pet.

One reason the group – age 18 to 34 - are predicted to take a big bite out of the pet industry market is simply because Millennials are the largest U.S. pet-owning group.

But findings go beyond sheer population and speak to purchasing habits specific to the generation.

Case in point – 63% of Millennials agree pets should be pampered, according to GfK research.

That and other findings add up to good news for industry catering to pets, especially those willing to capitalize by tailoring to expectations the generation has when looking for pet products or services.

Some things to consider when it comes to characteristics of the generation and how they shop are offered by editor-in-chief, Debbie Phillips-Donaldson (on PetfoodIndustry.com and gleaned from the American Pet Products Association's 2015-2016 National Pet Owners Survey.)

Phillips-Donaldson says:

• What's hot and what's not, often according to celebrities, matters when it comes to purchasing decisions for Millennials.
• The latest and greatest in products/services is attractive and if it's customized, even better.
• Those in the generation are apt to spend more on pets than themselves and like to research products, especially on social media, looking for customer reviews and mobile apps for promotions and discounts.
• They aren't prone to brand loyalty, which means they are open to trying new products, and like to buy products which has proceeds benefiting a cause.
• Other distinctions include a preference for raw pet food or recipes focused on pet health and a willingness to do more to care for their pets, like purchasing dental hygiene-related products to care for pets at home.

A recent Packaged Facts report shows those in the Millennial generation are much more likely than those in the 35-plus category to spend more for pet products and over the next few years.

Those in the 40 to 54-year-old age population (which has a high propensity to own and spend on pets) is expected to decline while pet ownership has typically seen a steep decline after age 6o.

So, the target market – if retailers want to focus on that opportunity – is the Millennials.

Something some companies are trying to work with.

UltraPet, for instance, has Neon Litter which is aimed at a generation looking for “fun, function and the ability to personalize,” while pet food company, Zoic, is pushing affordably-priced, new age pet food created by Millennials for Millennials.

By Nadia Moharib

Nadia Moharib is an animal lover who has adopted everything from birds to hamsters, salamanders, rabbits, fish and felines. She has written about all-things-pets for years and was a long-time editor of a pet magazine in a daily newspaper which featured a Q & A column, Ask Whit, penned by her pooch (ghost written, of course.) The serial dog owner lives in Calgary, Alberta and most days can be found at a dog park picking up after her rescue pooch, Scoots.

BUSINESS - American Kennel Club Opening Retail Centre In New York City

Manhattan will be the home of the American Kennel Club’s (AKC) first retail store and dog-care centre.

The 4,000 square foot facility will offer day care, boarding, training, grooming and walking services along with retail sales, reported the Wall Street Journal.

The dog-care centre will be located at Via 57West, on West 57^th Street, a luxury residential building with 45,000 square feet of retail space.

“We are experienced people with lifetimes involved with the care and showing and exhibiting of dogs,” Dennis Sprung, AKC’s chief executive, told the Wall Street Journal. “We bring that knowledge and experience to the table, and now we are just applying it to brick and mortar.”

As the United States’ registry for purebred dog pedigrees and promoter of sanctioned purebred dog events, the AKC has seen first-hand the devotion Americans have towards their pets – and the resources they commit to them – making this move into the pet retail business make financial sense.

According to the American Pet Products Association, of the $60.6 billion pet owners spent on their pets in 2015, an estimated $5.24 billion went toward grooming and boarding services.

The AKC plans to open more dog-care centres in other major cities.

BUSINESS - Global Pet Accessories Market Expected to Exceed $19 Billion by 2020

A recent article in Pet Age Magazine predicts a compound annual growth rate (CAGR) of over five percent in the global pet accessories market from 2015 though 2019.

This growth translates into an expectation that the market will exceed $19 billion by 2020.  

This data was gleaned from a market research study by Technavio called “Global Pet Accessories Market 2015-2019.” The study provides an analysis of the market in terms of emerging trends and revenue, along with forecasts for various market segments and all geographical regions.

According to the study, the global pet toys market is expected to reach $10 billion by 2019.  “There is a rising popularity of natural and organic pet toys as they are considered to be a safer option for pets,” Brijesh Kumar Choubey, a lead research analyst at Technavio for pet supplies, told Pet Age.

The global pet housing, bedding, and food market is expected to reach $5 billion by 2019, making it the second most prominent segment in the global pet accessories market. The global pet collars, leashes, and utility market is expected to exceed $3 billion by 2019.

BUSINESS - Pet Industry Specific E-Learning Platform Launched by FetchFind

FetchFind, the world’s only career and education site dedicated exclusively to the pet industry, recently announced the release of its pet industry-specific content marketplace and e-learning platform (known as a Learning Management System, or LMS).

Their goal is to help businesses of all sizes by providing business solutions, e-learning and content.

The LMS has topics relating to pet behaviour and health, general business, customer service and skills needed to work with animals.

“As the leading pet industry content distributor, we have a duty to assist the underserved online pet career and e-Learning market,” Jamie Migdal, founder and CEO of FetchFind, told Pet Product News. “According to the U.S. Bureau of Labor Statistics Employment Projections program, the demand for animal care jobs will be almost double that of all other occupations from 2010-2020, and e-learning is expected to reach upward of $62 billion dollars in consumer spending by the end of next year.”

“We’d be remiss if we didn’t formulate a method to meld the two industries in a way that made sense to everyone,” Migdal added. “Our job board is already established as the pet industry’s niche answer to generalist job boards. With the launch of our content marketplace and e-learning platform, we are the leading B2B destination for the pet industry.”

FetchFind was an InfoStream newsmaker of 2014 when launching their online platform to help pet industry professionals find qualified and dedicated employees.

READ MORE: FetchFind Introduces Industry Content Marketplace, Employee Training System

J.M. Smucker Co. Sees Sales Increase After Acquisition of Big Heart Pet Brands

The J.M. Smucker Company experienced a 47% increase in sales after their acquisition of Big Heart Pet Brands. Sales increased by $628.2 million USD for a total of $1.95 billion USD in sales. Diluted net income per common share remained at $1.14 USD and stock increased by $8 USD per share.

The purchase enabled Smuckers to enter the pet-food market. Brands included in the acquisition were Meow Mix, Milk-Bone, Kibbles 'n Bits, 9Lives, Natural Balance, Pup-Peroni, Gravy Train, Nature's Recipe, Canine Carry Outs and Milo's Kitchen.

Smucker’s Chief Executive, Richard Smucker said, “We are off to a solid start this fiscal year. Contributions from the Big Heart acquisition and new products were key drivers of this performance. Overall, we are on track to achieve our full year expectations for net sales and earnings, and are confident about the initiatives we have in place to support future growth.”

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Pet Industry Spending at All-Time High

The American Pet Products Association (APPA), announced that overall spending in the pet industry for 2014 exceeded $58 billion. The spending figures are part of APPA's annual comprehensive report that covers pet spending in the segments: food, supplies/over-the-counter medications, veterinary care, live animal purchase and other services. 

Pet services, which includes grooming, boarding, walking, training, daycare and event spa services for pets saw the largest growth with veterinary care spending coming in as the second largest growth. But the food category is the leading source of dollars spent within the industry as pet owners become increasingly aware of the quality and source of food given to their animal companions. 

Get the full report at www.americanpetproducts.org

Lawsuit Claims Purina's Beneful Is Poisoning, Killing Dogs

A recent lawsuit filed against Nestle Purina PetCare Company is claiming that one of the company's most popular dog food brands contains toxins that are poisoning and even killing people's pets. 

The lawsuit, filed in California federal court last month by pet owner Frank Lucido, alleges that thousands of dogs have become ill or died as a result of eating Beneful dry kibble dog food. Lucido, whose three dogs all suffered symptoms synonymous with poisoning, is one of more than 3,000 complaints consumers have made online of dogs becoming ill and/or dying after eating the kibble. 

"There are no quality issues with Beneful," said Purina in a response statement. "We believe the lawsuit is baseless, and we intend to vigorously defend ourselves and our brand. Beneful had two previous class action lawsuits filed in recent years with similar baseless allegations, and both were dismissed by the courts." 

READ THIS NBC NEWS ARTICLE FOR MORE INFORMATION

PayPal to expand digital wallet and coupon services with acquisition

PayPal has acquired mobile payment company Paydiant in an effort to expand its breadth of mobile solutions for retailers. Although terms of the deal have not officially been disclosed, a report from Re/code indicated that the acquisition will cost PayPal up to $280 million. 

The acquisition comes a little over a year after Braintree was acquired by PayPal. With PayPal's support, Braintree continues to see rapid growth. In fact, its authorized payment volume in 2014 was $22.8 billion, more than doubling from 2013. 

With the addition of Paydient to its portfolio, PayPal believes it will become an even stronger business partner for merchants. Paydient's mobile payment technologies have helped companies like Subway, Capital One and Harris Teeter build mobile payments, offers and loyalties into their own mobile applications. They also provide the mobile wallet platform for MCX whose members include many of the world's largest retailers including Walmart, Target, Sears, Wendy's, Exxon, CVS and more. 

The acquisition is subject to customary closing conditions including regulatory approvals, and is expected to close in late March or April 2015. As per the transaction, all of Paydient's 70 employees will join the PayPal team. 

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E=Doggy Smiles

From beer to cars and everything in between, marketers are realizing the effect a positive pet experience can have on consumers.

Enbridge's latest advert adopting the tagline, E=Doggy Smiles adds yet another feel-good pet commercials to the TV and social media airwaves.

Olivier Brandicourt to leave Bayer HealthCare

Werner Baumann (left) and Olivier Brandicourt

Effective March 31, 2015, Oliver Brandicourt, Chairman of the Board of Management of Bayer Healthcare AG and member of the Executive Council of Bayer AG, will leave the company to become the new CEO of Sanofi. On the same date, Werner Baumann, member of the Board of Management of Bayer AG, will take over the function of Chairman at Bayer HealthCare. 

Baumann will remain a member of the Board of Management of Bayer AG and of the company's Executive Council. He will also retain responsibility for strategy and portfolio management as well as for the Europe region. He already held leading positions at Bayer HealthCare from 2002 to 2009 – initially as Head of Central Administration & Organization and later as a member of the Board of Management and as the subgroup's Labor Director. Between 2006 and 2009, he actively participated in the integration of Schering AG, Berlin, Germany. Bayer HealthCare comprises the Pharmaceuticals, Consumer Care, Animal Health and Medical Care divisions.

"I would like to thank Olivier Brandicourt for his commitment and his contributions to the very successful development of Bayer HealthCare and I wish him all the best in his new function as CEO of Sanofi," said Dr. Marijn Dekkers, Chairman of the Board of Management of Bayer AG. "At the same time, I am very pleased that Werner Baumann will be leading our HealthCare business. He is a highly experienced leader with extensive expertise in this area." Over the coming months, Baumann will steer HealthCare's operating business together with the HealthCare Executive Committee and will work on the strategic realignment of the business in light of Bayer's future concentration on the Life Sciences HealthCare and CropScience as announced. 

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Beagle wins 2015 Best in Show

Photo Credit

"Miss P", a four-year-old Beagle was awarded the 2015 Westminster Best In Show classification at the 139th Westminster Kennel Club Dog Show, Feb. 17. 

Name: Ch Tashtins Lookin For Trouble (a.k.a. "Miss P") 
Sex: Female 
Date of Birth: January 09, 2011 
Breeder: Lori D Crandlemire
Dam: Tashtin I Do De Claire
Owner: Eddie Dziuk, Lori Crandlemire, Kaitlyn Crandlemire 

Smucker enters pet food business with acquisition of Big Heart Pet Brands

Big Heart Pet Brands announced earlier this month that it has entered into a definitive agreement to be acquired by The J.M. Smucker Company in a cash and stock transaction valued at approximately $5.8 billion. The transaction is expected to close by the end of the Big Heart Pet Brands' current fiscal year, which ends on May 3, 2015. 

"We are pleased to join the Smucker Company and their family of iconic brands," said Dave West, president and CEO of Big Heart Pet Brands. "Given the strong alignment between Big Heart Pet Brands' and Smucker's purposes and values, I'm confident that Smuckers is a great fit for our brand portfolio. Our sponsor owners have been great partners as we invested in growing our business and capabilities to drive value creation, and our iconic pet food and snack brands have significant growth potential. Smucker will provide these resources and scale to help our brands continue to grow and flourish." 

Under the terms of agreement, Big Heart Pet Brands' shareholders will receive 17.9 million shares of Smucker common stock and $1.3 billion in cash. Smucker will also refinance $2.6 billion of Big Heart Pet Brands' debt. Upon close of the transaction, Dave West will serve as president of Smucker's new pet food business. 

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Can people make their pets happy?

Researchers from Nestlé Purina Petcare are conducting some of the first studies of their kind into how external stimuli can generate joyful emotions in dogs. 

While scientific evidence demonstrates that owning a pet can help lower people's blood pressure, and reduce anxiety and depression, less is known about whether human contact has a similarly beneficial effect on animals' emotional wellbeing. 

Thermal imaging is just one of a number of non-invasive techniques Nestlé Purina researchers are using to better understand what makes a dog experience a positive change in mood. 

"Thermal imaging has been widely used in animal welfare studies, to assess inflammation in racehorses, for example, or to see how certain conditions affect livestock's stress levels," said Tagen T.S. McGowan, Nestlé Purina Petcare behaviour scientist. "This is one of the first times it's being used to measure positive responses in pets." 

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Emerging Leader, Valina Pope, shares Summit experience

Anna MacNeil-Allcock

InfoStream Staff Writer 

Eight emerging leaders were awarded scholarships to attend the 9th annual Summit for Urban Animal Strategies in October 2014. Co-founder of Starstruck Labradors, Valina Pope, accepted one of two Rolf C. Hagen Emerging Leader Scholarships. 

InfoStream staff writer Anna MacNeill-Allcock caught up with Valina at her home north of Calgary to discover the qualities that caught the attention of the urban animal industry and ask about her Summit experience.  

InfoStream (IS): How did you come to be involved in the pet industry?

Valina Pope (VP): I had plans for university at a very young age. I wanted to do something in medicine, or genetics, and research involving both. However, after working so hard in school and saving money, I was in a head-on collision on a major highway. One of my many injuries was head trauma, which has resulted in long-term memory issues. To this day, I can not remember the years since the accident, but the years before are crystal clear! I could not attend university due to my injuries. 

I was employed by Colette Francis (Pooch Palace Kennels) as kennel help after the accident. She taught me what it meant to be an ethical breeder, regardless of what you breed. She opened my eyes!

So, when I applied the knowledge I have kept from before the accident to my current life, somehow, I ended up breeding Labrador Retrievers! I chose “labs” because of the potential to create genetically superior pets that can better serve as healthier, longer-lived pets and assistance dogs. We have already seen some of the results of our unique approach to breeding.  

IS: What is driving your passion in the pet industry?

VP: I feel that if we can truly work together, we can build a positive pet experience, as well as eliminating the suffering of animals - both homeless and poorly homed. 

IS: What is the most satisfying part of your job?

VP: Personally, the moment for me, is seeing the positive difference I have made in families across North America.  

IS: What is the most challenging part of your job?

VP: Well, the more people I meet, the more I like my dogs! The most difficult (although rewarding) part of my job is the struggle to educate people. It feels like some people will not, or can not, be taught or want to learn! It can be frustrating. At the same time, when successful, this can be one of the most rewarding experiences! 

IS: Do you have any programs/ initiatives that you are especially passionate about?

VP: We are working to improve the quality of pet we offer, the education we can provide, and the ways in which we deliver these. I hope to use collaboration between different branches/organizations involved in the pet experience to accomplish this.  

IS: What would you like to see happen in your sector over the next few years?

VP: Further collaboration of vested parties to benefit the pets and companion animals in our reach.

IS: What was your experience at the Summit?

VP: My experience was very good. It taught me lessons I can apply both professionally, as well as personally. I couldn’t have hoped for more! 

IS: How might  attending the Summit have helped you in your mission?

VP: Attending the Summit enabled me to meet many new people in the industry and will help me along the path that I hope to tread for many years to come. I will be applying the many lessons I learned at the Summit to all aspects of my career and projects over the coming years.

IS: What kind of an impact do you expect this to have on the Companion Animal Industry?

VP: Ideally, of course, we all hope to begin a wave. Like ripples in a pond, we aspire to change the world around us. Some of our efforts will be, of course, quieted by larger waves. But that can not dissuade us from making a splash when something really matters!

Valina Pope is the owner of Starstruck Labradors and was awarded the Rolf C. Hagen Scholarship for her contribution to Retail and Commercial Services.

Valina has adopted one of the more unique models for breeding and raising dogs on a larger scale. Starstruck Labradors involves more than 30 breeding Labrador Retrievers, each living in a home environment with their families. Given that one of the largest concerns with commercial breeding facilities is the welfare of the adult female dogs, this model is of great interest.

To encourage the highest quality of care, Valina has developed a strong contract and holds her adoptive families accountable. The adoptive families agree to breeding their pet and Valina is responsible for finding homes for the puppies. Only once has she needed to remove one of her dogs from a home that was not living up to her required standards. 

Petsecure Celebrates 25 Years and One Million Pets Insured

Petsecure pet insurance announced this week it has insured one million pets across Canada in its 25-year history. 

The 1 millionth pet insured is Zoe, a Corgi and autistic
service dog from Chilliwack, B.C. Photo Credit

"At Petsecure we are thrilled to have insured one million pets in 25 years and we continue to work to protect as many cats and dogs as possible across Canada," said Rod Cunniam, Interim President and COO of Petsecure. "Our goal is to ensure that pet owners are able to make important decisions about their pet's health without a large financial burden." 

Since 1989, Petsecure has been working to ensure pets have the care they need. Over the past 25 years, Petsecure has grown to become Canada's oldest and one of its's largest pet health insurance providers. 

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What Are The Greatest Challenges Facing Retailers In 2015?

Is 2015 the year for mobile payment saturation? Are retailers really improving the customer experience? What can you expect from advanced personalization initiatives? 

These and other questions are asked and answered in the Retail TouchPoints 2015 Outlook Guide. A total of 15 retail industry experts have shared their expertise and predictions for 2015 and beyond. 

A copy of the guide can be downloaded at www.retailtouchpoints.com 

Ontario retailer tackles 'ban' bylaw

In November, the city council in Welland, Ontario, approved a bylaw to regulate pet stores in the city that sell dogs, cats and rabbits. 

Earlier in the year, city residents presented council with a 1,500-signature petition to ban the sale of pets in stores in an effort to counteract unscrupulous breeding. At the council meeting, Barry Luther, owner of Niagara Pet Corner, the city's only shop that would be affected by the ban, presented council with his own 750-signature petition asking the city not to impose the ban. 

READ MORE: Regulations imposed on pet store owner 

Council's decision not to ban the sale of puppies and kittens and instead support a recommended bylaw from city staff to regulate pet stores and give additional power to the SPCA is being commended by pet retailers across the country as well as by PIJAC and PIJAC Canada.

READ MORE: Effective Advocacy: Niagara Pet Corner and PIJAC Canada 

"We applaud Welland for choosing not to adopt an outright ban and see this case as a roadmap for effective advocacy," said PIJAC President and CEO, Ed Sayres in an opinion editorial. "Transparency, conversation and collaboration won the day, with everyone involved in the process making a meaningful contribution to reaching a compromise." 

READ MORE: A Postmortem evaluation of Vernon's 'Ban' decision 

Pet population and ownership trends in the US

A report published by Packaged Facts in November expresses concern over the aging population in the United States and the effect it will have on the pet industry. 

Although growth in pet ownership has levelled off in the past five years with more than 200 million pets of all kinds in 65 million households, the rapid acceleration of Americans expected to move into their 60s and beyond between 2015 and 2020 has raised warning flags for pet industry leaders. 

"Pet ownership drops off with age," says the report. "While 53% of 65 to 69-year-olds own pets, just 34% of Americans in the 70+ age group have a pet in their home." 

The report, Pet Population and Ownership Trends, takes an in-depth look at these and other trends affecting the future of the pet industry. It includes detailed estimates of the size of the American pet population today and projections of the future growth in the dog and cat population. The report also provides demographic and attitudinal profiles of owners of dogs, cats and other pets such as fish, birds and reptiles. 

This report and other related reports are available for online download from Packaged Facts for a fee. Visit www.packagedfacts.com for more information. 

CKC announces 2015 Annual General Meeting

The Annual General Meeting of the Canadian Kennel Club will be held on Saturday, March 21, 2015 at 11:30 a.m. at the Ontario Veterinary College, University of Guelph, Guelph, Ontario. The AGM agenda will be made available online in January 2015. The March Board meeting will be held on March 19 and 20, 2015, at the CKC head office.     

For more information, CLICK HERE

Petco to acquire leading online retailer

Petco announced last month it has entered into an agreement to acquire Drs. Foster and Smith, a leading veterinary-owned online pet supply company. The combination will unite the largest pet specialty retailers with one of the largest online pet retailers in the country. 

"This move underscores our commitment to nurturing the complete health and well-being of animals and further allows Petco to meet the diverse and expansive needs of pet parents," said Jim Myers, Petco CEO. "As pet lovers first and foremost, our values are perfectly aligned with Drs. Foster and Smith and we're confident this new addition to our business will help us continue to offer the very best in products and services to pets and pet parents." 

The acquisition is expected to be completed by early 2015. The terms of the deal will not be disclosed. 

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