BUSINESS - Zoetis to Expand Manufacturing Capabilities

Zoetis Inc. plans to expand capacity at its Global Manufacturing and Supply facility in Kalamazoo, Mich.

The company will install two new production lines and related operations to manufacture oral tablet and chewable medicines for companion animals.

Having more chewable medications on the market will make any pet owner who has wrestled with a stubborn cat or canine very happy.

Zoetis expects to add up to 45 manufacturing positions in the next three years as a result of the expansion and will spent about $64.5 million on the project.   

“Kalamazoo is home to one of the largest and most important manufacturing sites in Zoetis’ Global Manufacturing and Supply network,” Matthew Everhart, Vice President, Pharmaceutical and Aseptic Operations, Global Manufacturing and Supply at Zoetis, said in a release.

“Locating manufacturing here gives us continued access to a highly skilled and diverse workforce which is essential to managing a global animal health company.”

The Michigan Economic Development Corporation (MEDC) awarded Zoetis a Business Development Program incentive grant for their choice to build in Michigan rather than another state.

“Today’s investment announcement by Zoetis will foster a long-term positive impact on western Michigan’s economy and bring new jobs to the area. Numerous public and private partners deserve thanks for helping make this project happen, and we are pleased to support that collaboration,” said MEDC Chief Executive Officer Steve Arwood.

Zoetis currently employs approximately 300 people at its manufacturing facilities in Kalamazoo and Portage, including 265 dedicated directly to manufacturing.  

Renovations to the 524,000-square foot facility in Kalamazoo will expand production of Simparica(R) (sarolaner) Chewables, the oral flea and tick medication for dogs, which was approved by the U.S. Food and Drug Administration in February 2016.

The company expects to begin renovations later this month and to complete the project by early 2019.

This expansion isn’t a first for a company that continues to grow steadily.

Zoetis increased their manufacturing capabilities at their Nebraska facility in 2014.

The company was recently recognized by Forbes Magazine as one of America’s best employers for a second year in a row and made news with their acquisition of Nexvet Biopharma.

 

BUSINESS - Top 25 Pet Retailers

The pet market has experienced more than 20 years of consecutive sales growth and Pet Business Magazine has released its latest edition of the top businesses in that sector.

Their Top 25 Pet Retailers are ranked based on the number of outlets they operate in North America.

The story of 2016’s leaders? Expansion.

The number of stores encompassed by the Top 25 grew by more than 500 units over the past 12 months, which represents a 10 percent increase since the last edition of the list was compiled in early 2016.

Clearly expansion is an accelerating trend - the Top 25 store count only grew by five percent over the previous 10 years.

For the first time, numbers one and two on the list, PetSmart and Petco, were not responsible for adding the most stores.

Number three, Markham Ontario based Pet Valu opened the most stores with 150.

There were also a number of mergers/acquisitions in 2016 which contributed to the growth of companies.

Rounding out the top five are Pet Supplies Plus and Canadian-based Global Pet Foods.

As well as opening more stores, industry leaders like PetSmart are focusing on ecommerce and service expansion with revamped store concepts.

Bentley’s Pet Stuff, Kriser’s and Earthwise Pet Supplies are all new additions to the list this year.

See all of the Top 25 - read the entire article.

BUSINESS - Stores Expand as Pet Industry Grows

Petco is expanding their retail presence having opened five new stores in July and done extensive renovation to 13 Seattle locations.

The Seattle market makeover and new store openings are part of the company's overall goal to significantly expand its national footprint by the end of the year.

At the same time, Pet Supplies Plus has signed 20 deals across the country resulting in 55 new stores this year.

Pet Supplies Plus is the leading pet franchise chain in the U.S. with a total of 360 stores.

Why the expansion and renovation in such a short time?

It’s simple - pet industry spending continues to rise.

The American Pet Products Association (APPA) reported total spending of $60.28 billion in 2015 and is projecting an increase to $62.75 billion this year.

“The steady growth of the pet industry is credited to cognizant pet owners looking for natural products for their pets and an increase in the amount of households with pets, which is now roughly 75 percent of the country. Pet Supplies Plus’ growth is exceeding that of the industry and on track to open 55 locations this year, a record year for the company,” David Leonardo, senior vice president for franchising at Pet Supplies Plus, said in a release.

The pet industry appears to be one of the most recession-resistant. As people cut back household expenses they still want to provide the best to their animal companions.

Since 1994, the industry has grown every year by at least $1 billion, according to the APPA. From 2006 to 2011, the industry grew by 32 percent.

As reported in InfoStream in July, PetSmart, the largest specialty pet retailer in North America, is also growing by 80 stores this fiscal year.

It’s interesting that more stores are being built when there is such a shift to online purchasing in general.

However, Petco is including services such as a grooming salon, dog training area and in-store Vetco clinics in the new Wellness Centers and mobile clinics that cannot be provided online.

And Pet Supplies Plus will be launching its own e-commerce capabilities in 2017.

BUSINESS - PetSmart Expanding

With 50 new stores in the 2015 fiscal year, PetSmart plans to continue its growth by opening another 80 stores in the U.S. and Canada in 2016.

The new stores average over 12,000 square feet with service offerings such as grooming and pet training.

“We are ramping up efforts to expand our footprint in North America and are actively identifying and evaluating opportunities in both current and new markets,” said Brian Amkraut, senior vice president of real estate, strategy and initiatives.

“Our customers prioritize convenience, and we are listening and responding. Our aim is to focus on consumers’ localized needs and we’re pleased to have more opportunities to engage with and serve customers, and to be active in supporting pets and pet parents in these communities.”

PetSmart’s continued expansion is part of its long-term growth strategy and will further strengthen its position as the largest specialty pet retailer in North America.

PetSmart operates 1,466 stores in the U.S., Canada, Puerto Rico and 203 in-store PetSmart® PetsHotel® dog and cat boarding facilities.

Tuffy’s Pet Foods Inc. Opens New Manufacturing Facility

The pet food company, Tuffy’s Pet Foods Inc. has opened a new facility. This new facility boasts 130,000 sqft of modern manufacturing space and 50,000 sqft of warehouse space. The facility formally opens on August 19th, 2015. Tuffy’s has been manufacturing dry dog and cat foods for over 50 years. Tuffy’s currently produces food for NutriSource, Pure Vita, Natural Planet, and several co-manufactured products.

The new facility cost $70 million USD and is designed with food safety, efficiency, and flexibility in mind. Tuffy’s has combined technologically advanced equipment with manufacturing process segregation. The new facility will produce 50% more food compared to their original location. The original location will provide soft treat production capacity and warehouse space.

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Pet Supplies Plus Expanding Brand

Partnering with Franchise America Finance, Pet Supplies Plus will be making $15 million USD available to franchise candidates. America Finance specializes in debt and equity placement. It will be offering Pet Supplies Plus franchise candidates and current franchise owners financing solutions. Pet Supplies Plus will use this money to grow their brand in several American cities. Franchise

Pet Supplies Plus Vice President of Franchising, Alex Roberts said, “We are honored to work with the well-respected team at Franchise America Finance as we continue to grow the Pet Supplies Plus franchise into new territories and expand our presence in current markets. The partnership with FAF will help qualified candidates accelerate the ownership process to get their stores open quicker.”

Pet Supplies Plus opened 30 stores in 2014 and plans on expanding with 17 new franchisees in 2015. Roberts said, “In addition to this recent partnership, our team has continued to build a strong business model for franchisees including increased support from our corporate headquarters, an optimized distribution process and a prototype designed for maximum unit-level economics.”

   

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