This article was published in the December 20,21 issue ofPet Food Processing. You can read it and other articles in this issue in ourDecember digital edition.
Pet food brands have many distribution options that can significantly impact their success. This is especially true when certain brands are only available through certain channels or in formats that require special supply chains. A brand must have a winning strategy for its distribution channels.
Kent Cooper, coowner, ingredients, and processing, Evolve Consulting Group Fremont (Neb.), said that product form and production capability are important considerations when considering distribution options. Specialty products can be more expensive to manufacture and sometimes require special shipping or storage, such as refrigeration. This limits distribution options.
Distribution options should also be considered in light of expected margin and price point.
Cooper stated that mass distribution requires low-cost, high-volume products that are designed and manufactured to be competitive in this market. In mass distribution, brand identity is also important. To ensure a product’s success, we consider the distribution channel that our clients have suggested early in product development.
Over the past several years, the United States has seen a significant shift in pet food distribution. Many smaller brands are finding that mega-distributors are focusing more on the big brands and leaving them behind. It is an important decision that can be difficult and time-consuming.
Strong distribution partners share the responsibility to educate and inform consumers, especially when it comes to brands that offer targeted nutrition solutions. (Source: Evangers)
Holly Sher, Evangers Dog and Cat Food Company president, Markham, Ill., stated that you must first find the right fit for your brands. This includes looking at relationships, geographical territory, work ethic and organization. Then, it is important to talk to sales reps and leadership to make sure they are a good fit. You should always strive to build a long-lasting partnership.
Sher stated that she is looking for distributor partners who are committed to the company’s products and willing to spend the time to educate both retailers and their associates. Dan Markenson, Los Angeles head of retail, Dr. Marty Pets noted that ultimately it comes down to which retailers will best represent the brand.
We chose to focus on the independent pet specialty channel as we know these partners are passionate and will help their customers understand ingredient information, food types (like frozen-dried raw), and what’s new in this industry. Phillips Pet Food & Supplies was selected to serve these retailers. They have a great reputation and believe in Dr. Marty’s philosophy.
Robert Downey is the founder and chief executive officer of Annamaet Petfoods in Hatfield, Pa. He also stated that it was important for the company’s values to find partners who support its commitment to pets nutrition.
Downey stated that we look for companies that share our commitment to premium pet nutrition regardless of their size or distribution coverage. We have a number of products that we consider pretherapeutic. These formulas can help with obesity, diabetes, and the aging process. Therefore, we seek out like-minded partners to make these formulas available for pet parents across the country.
Rob Cadenhead is the general manager of Gott Pet Products, St. Francis (Wis.), the parent company to Hound & Gatos super premium dog food and Charlee Bear natural treats. He stated that it is important that products are readily available wherever customers shop for premium pet food.
A similar philosophy in pet nutrition is a key factor when choosing a distributor. Source: Annamaet PetfoodsCadenhead explained that it is crucial to review each distribution channel and potential and then adjust our strategies accordingly. We are committed to building long-lasting relationships with all of the distributor partners. We are looking for distributors who actively support retailers that carry our award-winning food products and treats.
Tips to achieve success
Distribution options are many. Distribution options for a brand include independent pet specialty channels, large pet chains and farm and feed outlets, ecommerce or food, drug, and mass (FDM), channels. The processor will ask Evangers to identify distributors. What is the reputation of the distributor among retailers and other manufacturers?
Sher stated that it is important not to dilute an area by distribution. Dual distribution can be done in many ways. However, we have found that our success is often with one large corporate distributor and one independent family-owned distributor to best serve our local retailers and ensure that they have the best options to order our products.
Companies can also ask key questions such as: How many reps are you currently employing?, What number of food lines do you currently own and which ones? Do they do all the deals? Downey’s success in distribution at Annamaet has been attributed to communicating the company’s vision and values to the retailers and partners it works with.
A comprehensive distribution plan with a strategic mix of partners can help brands be more resilient to headwinds. Source: Sosland Publishing Co.A solid strategy involves brand managers staying in constant touch with key distributors to ensure everyone’s sales goals are met.
Making purchases
Customers are constantly changing the way they search for and buy products. Today, there are many new ways to make purchases.
In the last few years, pet owners have been encouraged to subscribe to regular pet food shipments via direct-to-consumer subscriptions.
Markenson stated that there are always going to be shifts on the market and new trends emerging. Independent pet stores are resilient and provide valuable information to pet owners. We believe they can grow and we intend to grow with them.
Markenson stated that he would love to see distributors add more value in the distribution process to help pet shops succeed. This could include consumer marketing, better cocreation of websites and in-store merchandise. Sher stated that she hopes and prays that independent distributors continue their rise as Evangers will support them as a partner.
Sher said that it is not easy to run a business and that they face many obstacles like online competition. It is extremely difficult, it is clear. There are still opportunities for newcomers in certain parts of the country, and some retailers are eager to help.
A post-pandemic world
Downey pointed out that despite years of strong growth in this industry, and especially after the pandemics, many independent distributors are now cashing out. This means there are fewer small independent and family-owned distributors. Despite this, Downey has seen many successful independent retailers thrive in today’s market.
Distributing products well results in brand equity, sales volumes and increased brand loyalty. This is a win-win situation for both the distributor and the brand. (Source: Gott Pet Products)Downey said that these retailers have benefitted from a growing trend among society and pet owners to shop locally. Retailers report that they are seeing customers they haven’t seen in a while coming back to the store. These trends should continue, given the growing supply chain issues. A pet parent can feel at ease knowing that the independent retailer they support has the products they need. They don’t want delays in shipping online packages.
Pet food manufacturers, like other industries, have had to deal with supply chain issues, especially in ingredient sourcing. Despite that, the industry reports increased sales. Distributors are a key partner in reducing supply issues.
Cadenhead said that we will learn to work together more constructively, and more efficiently, and there will be virtually no limits to the brand equity we can create and the sales volume that we can collectively achieve.
Markenson predicts that e-commerce will continue to grow and DTC channels will continue to expand, but he believes pet brick-and-mortar retailers will thrive in the years ahead.
Markenson believes that the assisted sale as well as the buy local consumer trend should help. Different brands will allow them to stand out from the big box and other rivals. All channels can succeed in the pet industry, which is experiencing enough growth.
Continue readingPet food and treatment processingVisit our Operations page.
