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Animal populations exceeded the S&P500 by 48% in 2020. Freshpet up 127%

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animal populations exceeded the s&p500 by 48% in 2020. freshpet

The listed pet food companies outperformed the S&P500 stock index in 2020. The investment bank Cascadia Capital follows an index of listed stocks in the pet industry. The core group of the Cascadia Index outperformed the S&P 500 by 48% in 2020. The growth of the pet food industry accelerated in the second half of 2020 and increased gradually by 18% in the first half. Cascadia market analysts reviewed the performance of these pet food manufacturers and retailers in their report, Pet Industry Overview: Spring 2021.

According to Cascadia’s analysis, not all pet food companies achieved the same earnings per share. Emerging, high-growth pet food stocks that reflect the value of growth in public markets relative to earnings.

Pet food company with strong equity growth in 2020:

Adjusted earnings for pet food companies on the Cascadia Index have doubled over the past two years, while value for money has increased 28%. Most of the companies in the index saw their share price appreciate positively, reflecting the persistence of the sector during the ongoing pandemic.

Overall, 2020 was the strongest year for Cascadia’s pet food industry index after the great recession. Adjusted earnings increased 77.7% in 2020 compared to 27.6% in 2019. Revenue increased 10.0% in 2020 compared to 7.7% in 2019, representing a growth of 13.2% in the second half of 2020.

Two examples of pet food companies in 2020

The history of the growth of the pet food industry has been more complex than its simple general expansion. In the reports, Cascadia presented the examples of Nestle Purina PetCare, FreshPet and JM Smucker. Purina recorded organic growth of 10.2% in 2020. This contributed to an annual CAGR of 6.2% over the past four years. Growth in international markets drove this increase, while in the US Purina’s market share in all pet food and treat categories declined, with dog food declining 181 basis points and cat food 116 basis points
and handles 57 bps.

By comparison, the JM Smucker pet food division grew 4.1% in the period ended January 31, 2021, although profitability increased 0.1%, largely driven by a legal settlement. Smucker pet profitability declined 8.1% in the second half of 2020, after rising 9.4% in the first half. During the pandemic, Smucker cat food gained market share while dog food lost ground.

Chilled dog and cat food maker Freshpet saw sales grow 30% in 2020. E-commerce became more important for the company. Online sales now total 4.9%. These online sales were broken down into 55% click and collect, 34% last mile delivery, and 11% online delivery.

Source * www.petfoodindustry.com – * Source link

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Pet Food Safety Priority: 3 Questions to Ask Your Pet Food Manufacturer

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pet food safety priority: 3 questions to ask your pet

Sponsored content from Alphia

Choosing a pet food manufacturing partner is a complicated process. Assessing a company’s reputation in the marketplace is a good place to start, but why stop? It’s important to pull the curtain back to see what’s going on behind the scenes. This will give you a better idea of ​​how a company rates the quality and safety of their product.

Most reputable pet food manufacturers have a food and safety program in place. How thorough is it, however? How is it implemented? If you don’t answer these key questions, you run the risk of creating a product that doesn’t meet your standards, your customers’ standards, or the requirements of the FDA.

To avoid these risks, here are 3 critical questions you should ask any potential pet food manufacturer:

  1. How is your food safety program structured?

Most food safety programs aim to eliminate, prevent, or reduce food safety hazards to acceptable levels. To achieve this goal, the food safety management system (e.g. HACCP) must be based on effective prerequisites for food safety programs, which should include:

  • Supply chain management program – The integrity of the end product is guaranteed by setting specifications for all ingredients. The manufacturer should only buy from approved suppliers and create a schedule for the necessary supplier verification activities, such as on-site audits.
  • Sanitary transport of food – The food safety of the final products should be ensured by ensuring that the consignor or any other transport group handling the product follows prescribed hygiene practices.
  • cGMPs (Current Manufacturing Practices for Goods) – Any reputable animal feed partner should already be using cGMPs, which includes the use of hairnets to prevent product contamination, adequate water supplies and ongoing plant hygiene.
  • SOPs (Standard Operating Procedures) – The introduction of SOPs ensures the consistent execution of critical tasks.
  • SSOP (Sanitation Standard Operating Procedure) – Step-by-step procedures for disinfecting and cleaning equipment to minimize contamination.
  • Regular audits – External or internal audits should be carried out in the production facility; reports from a certified company should be available on request.
  • Committed culture – Manufacturers should commit to establishing guidelines and training their staff on food safety to ensure that this is one of their guiding principles.
  1. What measures are you taking to prevent cross-contamination?

Cross-contamination is an often overlooked segment of food safety, making it an important question to be asked of any potential partner. Every manufacturing process should already include a “killing step” with the aim of killing pathogens that may be present in the ingredients. Without appropriate precautions, however, harmful microorganisms can be transferred from contaminated surfaces to food surfaces or from raw materials to the end product. One effective preventive measure that you might want to look for is hygienic zoning. This is the case when a facility is divided into separate zones in order to separate areas for handling raw materials from areas after it has been killed, such as e.g. Both movement and airflow should be controlled to prevent cross-contamination between zones.

  1. Has any of your products been recalled? If so, what steps did you take to make sure it never happened again?

It is important to confirm that your prospective manufacturer has a history of meeting both customer and regulatory requirements. If the manufacturer has experienced a recall, before you cross it off your list, ask them what happened and what they did to alleviate the problem and make sure it doesn’t recur.

A recall can be evidence that a food safety program has failed; However, there are many reasons for a recall. For example, it can be as simple as an employee mistake leading to a recall. Or an ingredient from a supplier with a confirmation letter provided that later turned out to be contaminated. Whatever the reason for the recall, smart questions can help shed light on the real causes of the recall and help you determine if the manufacturer’s food safety programs are up to your standards.

Conclusion

Making pet food is a complicated process. In order to avoid contamination and maintain product integrity, suitable measures must be taken at every step from raw material procurement through production to transport. Failure to comply with food safety standards can lead to disruptions to your production schedule or, in the worst case, a recall by the FDA.

Before deciding to partner with a pet food manufacturer, make sure it is adequately reviewed by asking smart, informed questions and doing your own audit. Your reputation and your customers, two and four-legged friends, depend on it.

Source * www.petfoodindustry.com – * Source link

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10 top pet food companies headquartered in Europe

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10 top pet food companies headquartered in europe

Most of the top 10 pet food companies headquartered in Europe, as measured by sales in 2020, were different from the previous year’s rankings, with only four of the top 10 remaining in the same rankings. The June edition of the Petfood Industry with its annual report on the Top Pet Food Companies introduces the leading pet food companies from around the world. While companies headquartered in the USA dominate the top of the overall world rankings, companies based in Europe also stand out.

10 top pet food companies based in Europe and their home country, ranked by 2020 annual sales (in millions)

  1. Agrolimen SA, Spain, US $ 900.00
  2. Deuerer, Germany, US $ 721.00
  3. Heristo AG, Germany, $ 700.00
  4. United Petfood, Belgium, $ 650.00
  5. C&D Foods, Ireland, $ 450.00
  6. Monge & CSpA, Italy, $ 385.00
  7. Pet Nutrition Partner, Hungary, US $ 354.17
  8. Vafo Group, Czech Republic, $ 320.00
  9. Versele-Laga NV, Belgium, $ 257.10
  10. Farmina Pet Foods Holding BV, The Netherlands, $ 254.00

Compared to last year, six of the top 10 pet food companies headquartered in Europe have shifted in their ranking status, the top three and the bottom three. The four companies in the middle of the field remained constant in their rankings. Ranking changes include:

  • Agrolimen SA has moved up two places
  • Deuerer, Heristo AG and Versele-Laga NV have all dropped one place
  • Vafo Group has risen significantly in the ranking
  • Farmina Pet Foods Holding BV is new to the ranking this year

While one of the top 10 pet food companies headquartered in Europe had unchanged year-on-year sales, six saw year-over-year sales increases and three saw sales decrease.

Three of the top 10 companies headquartered in Europe have pet food subsidiaries

  • Agrolimen SA

    1. Affinity Petcare SA, Spain, $ 667.00
    2. Instinct, United States, $ 200.00
    3. Natures Menu, UK, $ 33.00 US
  • Devereux
    1. Vitakraft Pet Care GmbH & Co., Germany, $ 275.00
    2. Pets Choice, United Kingdom, $ 64.78
  • United Petfood
    1. Bynsa Pets, Spain, $ 136.23
    2. Effeffe pet food, Italy, $ 49.50

Geographically, the companies have their headquarters all over Europe, two of them in Germany, two in Belgium and one each in Spain, Ireland, Italy, Hungary, the Czech Republic and the Netherlands.

Acquire key data on leading US pet food manufacturers

The information is sold as a downloadable spreadsheet that allows customers to sort, filter, and analyze the data based on their specific needs. The data points include, if available, postal address, type of products offered, brands, number of employees, number of facilities and annual sales 2017-2020. The companies are ranked by sales in 2020.

Take the survey on the top pet food companies

The Petfood Industry Top Pet Food Companies project surveys pet food companies every year, always with the aim of expanding the reach and reach of the companies in the rankings. To be included in the annual leaderboard, please contact [email protected] The data is collected each year through a variety of methods including direct company contacts (a survey is emailed to the participating companies), in-depth research and estimates.

Contact Tara Loszach by email at [email protected]

Source * www.petfoodindustry.com – * Source link

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U.S. pet food spending increased in 2020, tracking sales growth

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u.s. pet food spending increased in 2020, tracking sales growth

U.S. consumer pet food spending increased more than 31% year-on-year (YOY) through mid-2020, according to data from the U.S. Bureau of Labor Statistics (BLS) reported by John Gibbons, aka the Pet Business Professor and have been analyzed.

This huge increase in reported spending confirms similar spending growth seen by Packaged Facts, as well as healthy pet food sales growth in 2020 reported by the American Pet Products Association, Euromonitor, and others. (Note that Packaged Facts data showed US pet food and treats spending up 15% over the year. The US government is notoriously slow to move, even in normal times; hence the latest BLS data, recently published, only goes through mid-2020. The agency’s data for the full year 2020 is expected in September 2021, according to Gibbons.)

Effects of COVID-19 on pet food spending

By mid-2020, U.S. pet food spending reached nearly $ 40 billion – $ 37.96 billion to be precise, according to BLS data. That’s an increase of $ 9.06 billion since mid-2019, Gibbons reported.

He found that pet food spending had actually started to grow in the second half of 2019 – in fact, “recovered” after unexpectedly declining in 2018, at least according to historical patterns. That decrease was likely due to the Food and Drug Administration (FDA.) Investigation and announcements about a possible link between grain-free pet foods and canine enlarged cardiomyopathy (DCM). This makes sense because sales data from Nielsen and others showed a significant drop in grain-free sales in 2018 and 2019, and that category accounted for a significant share of the overall U.S. pet food market.

“In the second half of 2019, we began to see a recovery from the overreaction to the FDA warning and spending increased by $ 2.3 billion,” Gibbons wrote. “Then came 2020. The recovery continued, but a new external influence came in that had a massive impact on US consumers – the COVID-19 pandemic. In March, non-essential stores were closed. It also sparked a wave of panic buying across some really important product categories. There is only one really essential category in the pet industry – pet food. “

Ultimate Pet Food Spend?

We all know the rest of this story, but Gibbons’ analysis provides additional insight into who actually spent more on pet food: higher-income US households and baby boomers. In particular, households with incomes greater than $ 70,000 increased their spending by 25% in the first half of 2020, and households with incomes greater than $ 100,000 increased their spending by more than 20%. Again, this is in line with animal feed sales data from Euromonitor and other sources.

Looking at pet food spending by age group, US consumers 55 and over increased nearly 23%, according to BLS data, while spending in two other broad age groups, under 35 and 35-54 year olds, actually decreased slightly YOY.

Based on this data, Gibbons created a profile of the “ultimate household that provides pet food”: 55 to 64 years old (also known as boomers), married couple with oldest child over 18 years of age, two earners but self-employed, income of US $ 100,000 Dollars to $ 150,000 and lives in an area of ​​more than 2,500 people.

However, he also pointed out that their status as “super-animal parents” may have influenced the BLS spending data, which is traditionally collected through interviews, surveys and even printed diaries – a process that, like everything else, is related to the pandemic. Due to lockdowns, all personal interviews or the collection of diaries by BLS employees had to be relocated online or by telephone, which dampened the response rate.

To compensate for this, BLS included households in its survey process, Gibbons said, where boomer influence may have played a role. “They are more than scrupulous about their pets, so it is expected that they will be the most likely to respond to a survey conducted in the difficult circumstances created by the pandemic,” he wrote. “This could result in their large pet food spending spending a disproportionate proportion of the sample and driving up the mean significantly.” He also noted that the large differences in pet food alone and in other categories were not widespread; the fluctuations in total spending were small.

Nevertheless, according to Gibbons, the BLS survey is “demographically representative without general biases. Pet food spending may be a bit high, but it’s very likely that there was a big spike in the first half of 2020. ”And the pet food and treat sales figures show that.

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Source * www.petfoodindustry.com – * Source link

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