Pet Food Processing - November 2023 - 18

PROCESSOR PROFILE
It's been a family business from day one -
everyone has contributed in a significant way. "
Ruben Martinez, Custom Veterinary Services
By 2014, with space maxed out in their existing facility
and business booming, thanks mostly to one large
customer, the company decided to expand. So, Ruben
bought another building, gutted it, and set up new production
in May 2016.
Then the business took an unfortunate turn. The company
lost its largest customer - and with it 60% of its
overall sales. But instead of letting this setback take the
company down, Ruben and his family used this opportunity
to make some changes that eventually led to more
customers, more products and more sales.
" Looking back, I think it was the best thing that ever
happened to us, " Ruben said. " Losing that one customer
forced us to make some changes... we made it up in one
year and ended up with a healthier business. "
Rene, vice president of business development, and
RT, director of supply chain, contributed pivotal ideas
for how to evolve the business to bring in a more diverse
set of customers, including additional product offerings,
updated marketing materials and a newly designed, customer-facing
website.
" We ended up diversifying and strengthening the
Soft chew supplements
are packaged in jars
and pouches in the
packaging room.
Ashlyn McKibben
business for the long run, " Rene said.
Capital connections
" After we moved into our new facility, the business took
off from there - and we haven't looked back once, "
Ruben said. " From 2016 until 2020, and COVID, we
were just trekking along in a steady way, continuing to
grow. When COVID hit, everything just exploded. "
The demand for pet food, treats and supplements went
through the roof in 2020, as pet ownership increased
during the pandemic and awareness of pet health rose.
" Like a lot of manufacturers, we weren't able to keep
up with demand, " Ruben said.
In an effort to satisfy that demand and continue to
grow the business, the Martinez family made a group decision
to take on a private equity investor in order to provide
capital for their next necessary facility expansion.
" The Martinez family started a search for an investment
partner in Q4 of 2020, " explained Worth Turner,
current chief executive officer of CVS. " They wanted
to find a capital partner to help them facilitate the next
phase of their growth and expansion. They were not
looking to simply 'sell' the business - Ruben is still the
largest individual shareholder at the company. In fact, all
four family members are still very active in the business. "
After a plethora of meetings, interviews and due diligence,
Custom Veterinary Services chose Align Capital
as its investment partner and finalized its partnership
in March 2021. During the course of selecting Align,
Turner came on board as the company's CEO, as well as
the second largest individual investor in the company.
" Align introduced me to CVS and I was planning to
join just as an investor, but as I got to know Ruben and
the family better, I knew that I wanted to be more involved
in the company's development, " Turner said. " It
was a mutual decision and partnership from the very
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Pet Food Processing - November 2023

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