Over the past 10 years there has been a fast move up the
continuum for pet food…especially in dog food but we are also seeing in cat and bird. Pets are a huge business and food is 60% of the total expenditure in the category. And because pets eat every day….it’s what a retailer loves…repeat business.
Owners spend lavishly on their pets. When queried many pet owners felt closer to their pet than they did their husband or kids! It’s no wonder that the old 40lb bag of OLE ROY was destined to be the fastest shrinking part of the food business for dogs. OLE ROY and ALPO have traditionally been price drivers and foot traffic builders at retail. Most 30-40lb bags can retail for as low as $15.99! Most aggressive retailers building foot traffic for promotional purposes are driving the $18.99 -$19.99 retail price point.
But you aren’t seeing it as much. In fact, mid-price and premium price dog food is now occupying 50% of the print space. That’s a huge change from just 4 years ago. $39-49$ for 20lb bag of premium food is now the norm with some going for $49 for just a 10lb bag. One can justify better ingredients and improved taste, but the fact is the margins for both the retailer and the manufacturer are getting much-needed relief in this category as well!
Now by-passing even that are refrigerated ready to eat, human grade dog food! The benefits to your dog are numerous but in a nutshell…less waste (dog backend) better nutrient absorption, improved vitamin make up and great taste. The time to spoil your dog is here….and available at most chain and specialty pet stores! Spoil your dog….come on!