Top Trends in the Urban Animal Industry

Back in May, Pet Product News ran an article that identified ten trends acting on the urban animal industry:

1. Premiumization - convincing pet owners to buy higher-priced goods.
2. Packaging - packaging is an important part of premiumization and has yet to reflect the packaging innovations seen in human products.
3. Product Purity - according to the Packaged Facts January 2015 pet owner survey the majority of dog and cat owners are concerned about product safety. Companies are responding by changing their ingredient sources and production facilities.
4. Grocery Copycatting - human product retailers understand that people love their pets and are creating pet products that not only mimic but set trends in the pet industry.
5. Big-box Evolution - primary competition for mass retailers is not small specialty retailers but grocers due to their one-stop shopping appeal.
6. Brand Alliances with Retailers - channel loyalty has decreased and only large retailers can appeal to pet specialty and mass markets which is causing brands to enter exclusivity deals with a retailer rather than widespread distribution.
7. Generational Marketing - marketers are pressed to find the common marketing elements between different generations in order to target a wider audience.
8. Downsizing the Market - small dogs do not match the product volume return of large dogs however retailers are smart to follow the pet-friendly movement and promote smaller and more convenient city dogs.
9. The Future is Online - the Internet is the cornerstone for time- and money-saving opportunities.
10. Pet Prescriptions - the Human Animal Bond Research Initiative (HABRI) is gathering scientific proof of the link between pet ownership and improved human health; expect to see ‘get a pet’ become a medical recommendation.

Enriching the lives of pets and people in urban communities is the goal of the Urban Animal Foundation. Register for the 2015 Summit now to get the facts, have your say and move the industry in response to these trends.

Click here for the full story. 

Market Trends Seen at the 2015 Global Pet Expo

The Global Pet Expo provides an opportunity to view new products and trends in the pet industry. Maria Lange published her top 6 Takeaways from Global Pet Expo; Lange's takeaways have been summarized here:

1. Freeze-dried blends could be the next premium success story. Natural and grain-free foods are already established. The next trend may be kibble with freeze-dried raw pieces. These blends are significantly cheaper than freeze-dried raw food and still offer some of the benefits of less processed ingredients.
2. Refrigerated/frozen SKUs may be taking a back seat. Though sales are still increasing, there were few new options for refrigerated/frozen pet food.
3. Calorie counting and labeling is another important example of humanization. There are several new products on the market that are geared towards weight control, especially with low-fat or low-calorie treats. People like to give their pets treats and manufacturers are making purchasing decisions easier.
4. Pet food is getting fruity. Fruit ingredients are becoming more common in pet products; expect to be able to find products with pomegranates, blueberries, or pumpkins.
5. Environment-friendly products are taking center stage. Being environmentally friendly is becoming more popular, especially for cat litter. Manufacturers are putting much more thought into litter products and litter can include walnut shells, corn kernels, or pine. Packaging is also becoming more environmentally friendly.
6. Value brands could pull in deal-loving Millennials. Manufacturers are offering more value brands, a step between generic products and high end name brands. Value brands tend to have lower prices and quality ingredients from recognizable manufacturers.

READ THE FULL ARTICLE

What are the Results of the 2015-2016 Nation Pet Owners Survey?

Bob Vetere, President and CEO of the American Pet Products Association (APPA), has announced the results of their biennial 2015-2016 National Pet Owners Survey. The survey reached 79.7 million households with pets. One important survey discovery was that there are increased numbers of new and young pet owners. New pet owners populate approximately 10% of the total pet owner population. This represents an increase of almost eight million new pet owners. Vetere states, “These numbers demonstrate huge potential for the industry to grow with up-and-coming, new pet owners.”

The newest generation of pet owners purchase more expensive animals, seek veterinary care more often, and buy more items for their pets. “This generation also likes high-tech gadgets like pet cams and electronic health monitoring collars, and convenience products to take their pets with them or care for them while they’re gone,” said Vetere. “This opens the door for innovation in products and services as well.” Pets and pet products are increasingly being sourced online and by using social media networks.

In previous surveys, the largest population of pet owners was the Baby Boomers. However, Baby Boomers are reaching life stages where they are reducing pet ownership. Vetere is not worried, he states, “In fact, the growing incidence of pet owners among the younger generations is so encouraging, we are extremely optimistic about the future of pet ownership and the industry that stands to serve those pets and their owners.”

The Survey also found that more businesses are becoming pet-friendly. 

• 8% of pet owners are allowed to bring their dogs to work. 
• 28% of pet owners have taken their dog to a hotel. 
• 9% of pet owners have taken their pet to a restaurant.

More people also believe that pets are good for their health. In fact, for 64% of pet owners, owning a pet has positive health benefits that are important to the owner. Vetere states, “Studies now exist that show pets can help improve our cardiovascular health, improve immunity in young children and assist with therapy for autistic children and people suffering from PTSD. Our desire to take better care of our pets and the joys and benefits they provide are continuing to work together to grow pet ownership and keep this great industry strong.”

  READ THE FULL ARTICLE HERE

Urban Animal Adjudication Schedule Published

Urban Animal Scholarship Event Travels Across North America

The Schedule for the Regional Adjudication events is published. By separating the Action Initiatives from the Adjudication events the focus shifts to identifying leading thinkers, initiatives and innovations that are candidates for replication, mentoring and recognition across the industry.

ADJUDICATION SCHEDULE
0830 - 0900	Registration
0900 - 1000	Innovation Showcase Adjudication
1000 - 1015	Session Pause
1015 - 1115	Research Poster Adjudication
1115 - 1130	Session Pause
1130 - 1230	Alumni/Mentor Luncheon
1230 - 1330	Digital Journalist Adjudication
1330 - 1345	Session Pause
1345 - 1445	Emerging Leader Adjudication
1445 - 1500	Session Pause
1500 - 1600	Summit Award Nominees Boot Camp
1600	Session Adjourned

Adjudicators are selected for each event from the Alliance for Urban Animals. Individuals adjudicating nominations have achieved the status of Alumni, Mentor and/or Advocate, in the Urban Animal program. Guests attending the Adjudicating Events will also be polled for their votes in each program. Guest registration is $35 in advance or $50 at the door.

Nominees unable to attend an adjudication event should contact Shannon Woodward as soon as possible.

Do You Know an Exceptional Person? Scholarship Nominations Are Still Being Accepted!

New nominees and attendees are still being accepted for the 2015 Western Adjudication Event in Calgary, AB! The purpose of this event is to bring thought leaders from different sectors of the animal industry together. Please click the following links to learn more about the different Scholarships:

• Innovation Showcase: 3 openings 
• Emerging Leaders: 4 openings
• Research Posters: 4 openings
• Digital Journalists: 6 openings

These adjudication events will invite scholarship nominees from the Research Poster, Innovation Showcase, Digital Journalist and Emerging Leader programs to present to a panel of adjudicators including Action Council members from each region and Urban Animal Alumni who will observe the presentations and interview nominees.    

Scholarship recipients are awarded a full delegate package to attend and present at the 2015 Summit for Urban Animal Strategies in Lake Louise, Alberta, October 14-17. Scholarships are valued at up to $2,700 and include Summit registration fees, meals, accommodations, gratuities, and up to $550 in travel subsidies.

PetSmart announces 18% increase to quarterly dividend and new $535 million share purchase authorization

PetSmart announced the Board of Directors' approval to increase its quarterly dividend by 18% from $0.165 to $0.195 per share beginning in the third quarter of fiscal 2013. The dividend of $0.195 will be paid on 15 November 2013 to stockholders of record at the close of business on 1 November 2013. This is equivalent to an annual rate of $0.78 per share. 

The Board of Directors also authorized a new $535 million share purchase authorization that expires on 31 January 2015. This new share purchase authorization will commence 1 October 2013 and will be in addition to any unused amount remaining under the June 2012 share purchase authorization as of that date. 

"We believe the stability and predictability of our cash flow demonstrates the continued strength of our business," said David Lenhardt, CEO. "And today's announcement reaffirms our commitment to returning excess cash to our shareholders though a combination of dividends and share repurchases." 

PETSMART INC.

Korea sees sharp increase in pet spending

South Korea reported a 20.9% increase on pet spending in August 2013 over the same month last year. Data collected from the Credit Finance Association showed spending at pet shops and veterinary clinics amassed an ₩83.1 billion ($77.7 million US) purchase totals. 

The demand for pet-related insurance programs also gathered ground this year, implying the growing presence of pet-related instruments in the country's financial sector. Two reporting insurance companies  announced policy increases of more than 400 subscribers in the past year. 

Market watchers said the rising amount of pet-related transactions with plastic cards came as more cardholders adopted companion animals amid the increasing number of one-member households in South Korea. 

READ THE KOREA TIMES ARTICLE

Record breaking 8,432 adoptions during Maddie's Pet Adoption Days

Nearly 8,500 cats and dogs found homes during the nationwide Maddie's Pet Adoption Days on June 1-2, 2013. Held in eight communities at 192 locations across the United States, it was the America's largest free pet adoption event. 

Reflecting Maddie's Fund's focus on pets who are traditionally harder to find homes for, 297 of the adopted pets were elderly dogs and cats, 2,829 had treatable medical conditions and 796 were elderly pets with treatable medical conditions. 

All adoption fees were waived during the event, with nearly $7 million awarded to participating shelters and rescue groups by Maddie's Fund. Each organization received $500 for every healthy adult dog or cat, $1,000 for every senior pet or pet with a treatable medical condition and $2,000 for every adopted dog or cat who was both a senior and had a treatable medical condition. 

READ THE NEWS RELEASE

APPA presents The Future of the Pet Industry

"The landscape of the pet industry is rapidly changing! Savvy retailers and manufacturers are aware of the need to market to the new consumer segments of the future, but since tomorrow is unchartered territory, how do we best engage these shoppers?"

An American Pet Products Association's Global Opportunities Education Series webcast will seek to solve this industry-wide dilemma during the second half of its series, The Future of the Pet Industry Part 2: Pet Marketing to Tomorrow's Demographics.   

Webcast presenter Michael Johnson, VP of marketing and information at Latham Associates will cover a variety of topics during Part 2 including: Marketing to diverse, multicultural and aging consumers; Leveraging technology for connection and reach; and Honing your products and packaging for utility, message and information. 

Part 1, Future of the Pet Industry: Profiting from Our Changing Demographic Trends, which aired June 2013 can be accessed through webcast archives. Topics covered in the first half of the series included: Consumer demographics driving pet today and tomorrow; Urbanization and how it will affect pet ownership and pet products; Technology and how best to utilize it as well as defend against it; and Economics and the future growth in pet. 

The Future of the Pet Industry Part 2: Pet Marketing to Tomorrow's Demographics 
Date: October 3, 2013
Time: 2:00 p.m. EST

USDA Cracks down on Internet pet sales

Online classified sites in North America have been the centre of negative media attention in recent months as companion animal organizations and animal advocates put the pressure on Internet pet sales.

Last week, the U.S. Department of Agriculture (USDA) announced it would crack down on dog breeders who sell puppies over the Internet by issuing new regulations that will force them to apply for federal licenses. 

Th new rules would subject dog owners who breed more than four females and sell the puppies online, by mail or over the phone to the same oversight faced by wholesale animal breeders. Under the rules, sellers must allow buyers to see animals in person before they purchase them or obtain a license and be subject to inspections by the Animal and Plant Health Inspection Service. 

The rules are targeted to dog breeders but could affect breeders of other animals too. The USDA estimates that up to 4,640 dog breeders could be affected by the, along with about 325 cat breeders and up to 75 rabbit breeders. 

Related Reading:

USDA CRACKS DOWN ON INTERNET PET SALES

KIJIJI URGED TO BAN HOUSEHOLD PET LISTINGS 

BC SPCA APPLAUDS BAN OF PRIVATE PET SALES ON CLASSIFIEDS WEBSITE

Hill's reaches out to Ontario humane societies

In response to the removal of 100+ cats from a home west of Toronto last weekend, Hills Pet Nutrition is reaching out to help the Oakville and Milton Humane Society with their urgent request of 100 cases of Hill's feline canned pet food. 

This effort by Hill's is in addition to the free Science Diet product already provided to the Oakville and Milton Humane Society (a shelter partner) as part of the Hill's Food, Shelter & Love program. 

"The condition of these cats were understandably very poor," said Frances Cheslo, communications supervisor at Hill's in an industry email this week. "After being examined by veterinarians, they estimated they needed about 100 cases of canned cat food split between Science Diet Mature Adult Feline and Prescription Diet i/d Feline due to the fact they are mostly senior cats with oral health and gastrointestinal issues."

The Oakville Humane Society expressed its gratitude for the generous donation on its Facebook page, "It was a huge order, especially when you consider that Hill's Pet Nutrition already donates all our dry cat, dog, puppy and kitten food. The answer came back almost instantly and it was a resounding 'YES'!"

Photo courtesy of the Oakville Humane Society

BC SPCA appoints new manager for Campbell River Education & Adoption Centre

The BC SPCA is one step closer to re-establishing its operations in Campbell River. Stephanie Arkwright, long-time staff member of the Campbell River SPCA, has been hired as the new manager of the Society's Education & Adoption Centre, effective 16 September. 

"We are confident that having a full-time manager in place will help us expedite the process of finding a new location so that w can reopen as soon as possible," said Craig Daniell, CEO of the BC SPCA. He notes that the SPCA has been seeking a new location since March 2013. In addition to reviewing prospective sites for the SPCA, Arkwright will be hiring and training staff and reaching out to volunteers, businesses and supporters. 

READ THE MEDIA RELEASE

Pet food bank established in Edmonton

Several Edmonton retailers are partnering with Boyle Street Community Services to ensure low-income families and individuals can care for and feed their pets.

A new inner-city pet food bank program which depends on pet food and supply donations was established after University of Alberta kinesiology student Leanne Kovacs noticed pet owners utilizing Community Services to care for their pets before themselves during her internship at Boyle Street. 

Kovacs gained initial support from 11 pet stores in Edmonton and St. Alberta who agreed to provide donation bins in their stores. In a matter of months, the program has seen success with over 600-pounds of pet food donated and 40 people accessing the food.  

The Edmonton Humane Society says it stands behind pet retention and a pet food bank is a step in the right direction. 

Shawna Randoph, spokeswoman for EHS told the Edmonton Journal, "We are all about people trying to retain ownership and we are so pleased to hear that there is additional support that will help people keep pets in their homes. We know the importance of having companionship with animals so an opportunity like this is very beneficial."

RIP Tuxedo Stan

Tuxedo Stan, the Halifax cat who made International headlines with his bid for mayor in 2012, lost his battle with terminal cancer yesterday. 

Stan was a three-year-old cat born to a feral mother in Halifax who aimed to raise awareness of the increasing feral and stray cat situation in the city.

Stan was diagnosed with cancer just two months after last year's election. The day before Stan was euthanized, his brother, Earl Grey, announced his intention to run for Premier of Nova Scotia and continue Stan's legacy. 

Stan's campaign managers (owners), Kathy and Hugh Chisholm, presented Stan's rise to power and the Tuxedo Party's aspirations for a humane world at the 2013 Regional Conferences in Halifax. 

"While we are all saddened to have Tuxedo Stan leave us, his contribution to raising awareness for cats in his community emboldens us to take the lessons we all learned to communities across North America," said Larry Evans, executive producer of the Urban Animal Program. 

From the time Tuxedo Stan announced he would run for mayor, the Tuxedo Party garnered international media attention with Ellen DeGeneres and Anderson Cooper endorsing the feline. Stan's Facebook page boasts more than 17,000 Likes and the Party centres around a strong social media strategy. A Tuxedo Stan product line selling plush 'minion' dolls, t-shirts and even a men's body wash all raised funds for Spay Day HRM, a non-profit society in Nova Scotia. The Spay Day Program is an initiative to address the cat over-population by assisting students and low-income families to spay and neuter their cats. 

Petplan Chairman awarded Gold Stevie at International Business Awards

photo credit

Metro Bank and Petplan pet insurance Chairman, Vernon Hill, was awarded the Gold Stevie® Award in the Chairman of the Year category at the 2013 International Business Awards last month. 

Hill was awarded the Gold Award for his positive contribution to the UK banking sector and his ability to create opportunities that ultimately improve experiences for customers. Hill was described as "instrumental in Metro Bank's successful launch and the subsequent explosive growth of the UK's most customer focused high street bank." 

Hill joined Petplan as Chairman in 2008. His past accomplishments include former chairman and president of Commerce Bank, which he founded in 1973. Forbesmagazine, in its annual 20/20/20 list, shows Hill as the fourth-highest-performing public company CEO across two decades with a 23% compounded shareholder return. Hill's philosophy that great companies are built by creating fans, not customers, has been paramount in his business successes. 

The International Business Awards are the world's most premier business awards program. They were created in 2003 to honour and generate public recognition of the achievements and positive contributions of businesses and working people worldwide. This year's awards, the 10th annual awards, were judged by more than 250 executives around the world. 

READ THE NEWS RELEASE

Supporting the Underdog

A movement to support shelter dogs and adoption by publicly identifying and celebrating the rescue dog is gaining popularity in North America. 

Project Blue Collar® was created to change the perception of shelter dogs from being damaged to being priceless and to educate and inspire others to give shelter dogs a chance. The Project promotes the mantra "Support the Underdog®", which it proudly displays on the blue silicone collars. For every collar sold, the Project donates a collar to its Shelter of the Month partner for them to sell and keep 100% of the revenue. 

The organic, made in the USA, collar retails for $10 online at projectbluecollar.com. Since launching in October 2012, over 2,100 dogs have been Blue Collared in 35 states and four countries.  

Saskatchewan SPCA Animal Welfare Conference

The Saskatchewan SPCA will host its 9th annual Animal Welfare Conference 20-22 September 2013 in Saskatoon. 

This year's agenda contains a variety of topics including The History of the Humane Movement (Barbara Cartwright, CFHS); Updating Codes of Practice for Livestock (Dr. Joe Stookey); and The Cruelty Connection: Animal Cruelty, Domestic Violence and Child Abuse (Tim Battle, Alberta SPCA). 

The event will also host several "Wet Labs" (hands on training) sessions ranging from Trapping and Management of Feral Cats (Linda Gubbe, SCAT Street Cat Rescue) to Caring for Aquarium Fish (Gillian Halyk, Animal Protection Officer, Saskatchewan SPCA)

SASK SPCA ANIMAL WELFARE CONFERENCE INFORMATION

ASPCA Partnership extends to Albuquerque N.M.

An ASPCA initiative is underway to save the lives of more at-risk homeless pets in Albuquerque N.M.

This collaborative effort, called the ASPCA Partnership, includes several organizations and will involve annual planning meetings to determine and monitor goals, strategies and needs; a grant allocation process; and access to ASPCA resources, expertise and guidance as well as strategic planning support, statistical analysis, training and participation in ground-breaking research projects. 

 In 2012, approximately 28,700 homeless animals entered the Albuquerque partner agencies. Aside form overcrowding the shelters, some of the other challenges facing Albuquerque are the need for more lost animals to be reunited with their owners, an increase in targeted spay/neuter, and more pet adoptions. 

Since the ASPCA began its Partnership program in 2007, more than 1 million animals have been adopted, returned to owners or spay/neutered as a result of the exceptional collaboration among partner agencies in each community. For more information and a list of all ASPCA Partnership Communities, CLICK HERE. 

READ THE ALBUQUERQUE NEWS RELEASE

PetSmart announces Second Quarter 2013 Results

PetSmart, Inc. released its second quarter 2013 results last week, reporting earnings of $0.89 per share, up 25% compared to $0.71 per share in the second quarter of 2012. Net income totalled $93 million in the second quarter of 2013, compared to $79 million in the same quarter of 2012. 

Total sales for the second quarter of 2013 increased 5.3% to $1.7 billion. Comparable store sales, or sales in stores open at least a year, grew 3.4%, benefitting from comparable transactions growth of 1.0%. Services sales, which are included in total sales, grew 7.3% to $205 million. 

READ THE REPORT 

Collaboration Elevates Importance of preventing animal cruelty

The ASPCA and New York Police Department are partnering to offer enhanced protection to the city's animals by leveraging the strengths and expertise of both organizations. 

Under the agreement, which was announced last week, the NYPD will take the lead role in responding to all animal cruelty complaints in the five boroughs, while the ASPCA will expand its direct care and forensics work to assist law enforcement officials by providing critical support for animal cruelty victims.

The collaborative effort will officially launch September 1, beginning with a pilot in the Bronx, and will expand city-wide in early 2014. 

READ THE NEWS RELEASE