Del Monte profits from pet food acquisitions
Del Monte's 2006
acquisitions of the Milk-Bone portfolio from Kraft (for $580 million) and the
Meow Mix brands from private equity firm Cypress Group (for $705 million)
attributed most of its 12.6% net sales growth in second-quarter fiscal 2007
(ending November 2006).
Del Monte advantages from the booming trend in pet
food products. OverallUS
sales of dog
biscuits/treats/beverages jumped 5.2% last year, to account for $658.9 million
of total dog food category sales of $2.96 billion, according to Information
Resources, Inc. (IRI). And Del Monte's
strengthening its already strong position in the dog arena. Milk-Bone Dog
Biscuits remained the number 1 treat last year, with a 13.5% dollar share. Del
Monte also manufactures private-label pet food/treats--and private-label treats
overall were in second place, at 11%. Del Monte's Pup-Peroni held fourth place
(5.2% share), and Milk-Bone Flavor Snacks Biscuits were in sixth place (4.1%
Still, there's plenty of dog-eat-treat
competition, including number 3 Beggin Strips (Nestle Purina, 8.9% share) and
Greenies, dental health-oriented chewies that took the market by storm after
their introduction by S&M NuTec eight years ago.
According to a
new pet-food category report from Market Research's Packaged Facts division,
Greenie's IRI-tracked sales leaped from $16,000 in 2000 to $30 million for the
12 months ending May 6, leading some analysts to predict that the upstart would
soon overtake Milk-Bone. Instead, in the wake of claims that Greenies were
sickening or even killing some dogs, the brand's sales dropped 10.6% last year,
and its share dropped by nearly a percentage point, to 3.8% (7th place).
But with the
backing of new owner Mars Inc., Greenies is now fighting back with a
reformulated version. And Packaged Facts analysts report that TV commercials may
be in the offing.
To subscribe to the free AllAboutFeed newsletter
To comment, login here
Or register to be able to comment.