PET Food Processing - June 2019 - 10

TRENDS

PRIVATE-LABEL PRODUCTS
are rising in the ranks in pet care with
retailers launching their own brands
across all channels and all categories.
The number of private-label
items per store increased from
110 in 2015 to 130 in 2018.

18%

GROWTH

Distribution of private-label items
jumped from 35% of all pet retail shops
in 2015 to 55% of all shops in 2018.
Nielsen

big-box retail stores, but more so in the low-end and
medium segments of pet food and treats. "I haven't seen
an influx of premium house brands at the stores yet;
most are either available at a premium independent pet
channel or sold online only," she says.

Value of premium house brands
Private label has been an important and integral part of
most retailers' pet product offerings because it garners a
higher margin than brand sales, says Mills.
"As consumers evolve towards premium and superpremium products and want more for their pets, it's
natural that retailers would, and should, emulate those
premium and super-premium pet foods," he says.
However, Mills says brands and private-label products
need to be considered and marketed separately because
they have separate goals. "Because private-label brands
do not have the high cost of manufacturing that national
brands have, they're able to retail for less cost-per-pound
than national brand alternatives while still reaping a
higher margin for the retailer," he says.
Lye reiterates that there currently aren't many industry players that have a premium house brand pet food.
"It's a very niche market that only a few house brands
will have a competitive product to a national brand,"
she says.
As a pet food product gets more premium, the operational feasibility gets harder, ingredients are more expensive, volumes are generally much lower, and margins
are tight. Hence, not many contract manufacturers are
willing to create a product that is comparable, Lye adds.
So, what are the benefits of retailers creating premium
house brands of pet food? "In short, less monopolization
by the big premium players, the fall of market power and
the start of a competitive marketplace," Lye says. "With
competition in the marketplace, it allows consumers to
have more options for their dogs and the price of premium dog food to be more competitive and affordable."
This, in turn, becomes a major benefit for animal health,
particularly for dogs, she says, as more affordable options are available for higher-quality premium pet foods.
Most premium house brand products are produced by
a contract manufacturer, Lye says, so margins are going
to be less than a national brand that owns its own manufacturing plant. "Other than the cost of goods, house
brands also need to spend money on marketing their
products, educating consumers about their brand and
discounting further to attract new consumers," she says.
Discerning pet owners are driving pet food claims that
appeal to functional health benefits, include whole fruits, veggies
and high-quality proteins, and lack fillers and artificial ingredients.
Chewy.com

10

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PET Food Processing - June 2019

Table of Contents for the Digital Edition of PET Food Processing - June 2019

PET Food Processing - June 2019
CONTENTS
OFF THE LEASH - FEAR FREE
TRENDS - IN THE HOUSE
PLANT PROFILE - THE MEAT OF THE METRICS
FOOD SAFETY - VERIFIED ACCOUNTABILITY
INGREDIENTS - DEFINING CHELATION AND ENCAPSULATION
FORMULATION - FULL DISCLOSURE
EQUIPMENT - EXTRUSION INNOVATION
ON THE MOVE
OPERATIONS - CONTROL ISSUES
PACKAGING - MEDLEY OF MEALS
BEST IN SHOW
PATENTS TO PONDER
EVENTS
SIT, STAY, READ
AD INDEX
PET Food Processing - June 2019 - PET Food Processing - June 2019
PET Food Processing - June 2019 - PET Food Processing - June 2019
PET Food Processing - June 2019 - 2
PET Food Processing - June 2019 - 3
PET Food Processing - June 2019 - 4
PET Food Processing - June 2019 - CONTENTS
PET Food Processing - June 2019 - OFF THE LEASH - FEAR FREE
PET Food Processing - June 2019 - 7
PET Food Processing - June 2019 - 8
PET Food Processing - June 2019 - TRENDS - IN THE HOUSE
PET Food Processing - June 2019 - 10
PET Food Processing - June 2019 - 11
PET Food Processing - June 2019 - 12
PET Food Processing - June 2019 - 13
PET Food Processing - June 2019 - PLANT PROFILE - THE MEAT OF THE METRICS
PET Food Processing - June 2019 - 15
PET Food Processing - June 2019 - 16
PET Food Processing - June 2019 - 17
PET Food Processing - June 2019 - 18
PET Food Processing - June 2019 - 19
PET Food Processing - June 2019 - 20
PET Food Processing - June 2019 - 21
PET Food Processing - June 2019 - 22
PET Food Processing - June 2019 - 23
PET Food Processing - June 2019 - 24
PET Food Processing - June 2019 - FOOD SAFETY - VERIFIED ACCOUNTABILITY
PET Food Processing - June 2019 - 26
PET Food Processing - June 2019 - 27
PET Food Processing - June 2019 - 28
PET Food Processing - June 2019 - INGREDIENTS - DEFINING CHELATION AND ENCAPSULATION
PET Food Processing - June 2019 - 30
PET Food Processing - June 2019 - 31
PET Food Processing - June 2019 - 32
PET Food Processing - June 2019 - 33
PET Food Processing - June 2019 - 34
PET Food Processing - June 2019 - FORMULATION - FULL DISCLOSURE
PET Food Processing - June 2019 - 36
PET Food Processing - June 2019 - 37
PET Food Processing - June 2019 - 38
PET Food Processing - June 2019 - 39
PET Food Processing - June 2019 - 40
PET Food Processing - June 2019 - EQUIPMENT - EXTRUSION INNOVATION
PET Food Processing - June 2019 - 42
PET Food Processing - June 2019 - 43
PET Food Processing - June 2019 - 44
PET Food Processing - June 2019 - 45
PET Food Processing - June 2019 - 46
PET Food Processing - June 2019 - 47
PET Food Processing - June 2019 - 48
PET Food Processing - June 2019 - ON THE MOVE
PET Food Processing - June 2019 - 50
PET Food Processing - June 2019 - 51
PET Food Processing - June 2019 - 52
PET Food Processing - June 2019 - 53
PET Food Processing - June 2019 - 54
PET Food Processing - June 2019 - OPERATIONS - CONTROL ISSUES
PET Food Processing - June 2019 - 56
PET Food Processing - June 2019 - 57
PET Food Processing - June 2019 - 58
PET Food Processing - June 2019 - 59
PET Food Processing - June 2019 - 60
PET Food Processing - June 2019 - PACKAGING - MEDLEY OF MEALS
PET Food Processing - June 2019 - 62
PET Food Processing - June 2019 - 63
PET Food Processing - June 2019 - 64
PET Food Processing - June 2019 - 65
PET Food Processing - June 2019 - 66
PET Food Processing - June 2019 - 67
PET Food Processing - June 2019 - BEST IN SHOW
PET Food Processing - June 2019 - 69
PET Food Processing - June 2019 - PATENTS TO PONDER
PET Food Processing - June 2019 - 71
PET Food Processing - June 2019 - EVENTS
PET Food Processing - June 2019 - SIT, STAY, READ
PET Food Processing - June 2019 - AD INDEX
PET Food Processing - June 2019 - 75
PET Food Processing - June 2019 - 76
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http://digital.petfoodprocessing.net/sosland/pfp/2019_12_01
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http://digital.petfoodprocessing.net/sosland/pfp/2019_09_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_06_01
http://digital.petfoodprocessing.net/sosland/pfp/2019_03_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_12_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_09_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_06_01
http://digital.petfoodprocessing.net/sosland/pfp/2018_03_01
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