Progressive Grocer

AUG 2015

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drink and foodservice for Chicago-based market research frm Mintel. "Manufacturers should note that the pet food humanization trend translates into pet owners wanting the same quality and safety standards for pet food as for their own food," Kraushaar says. Tat's good news for grocery retailers, which now have more opportunity than ever to compete with pet specialty stores for a share of the pet food business. Some leading retailers — including Publix, Winn-Dixie, Marsh, Stop & Shop, Giant Eagle, Target and Walmart — are already tapping the market with targeted coupons, pet prescriptions at in-store pharmacies and other services. How to Profit From Pet Products Creating a better "total" experience in the pet aisle can create a competitive advantage for retailers, Purina's Cooke says. "Retailers should understand that many con- sumers buy their pet care products for the nutri- tional value, as they would for any member of their family," he explains. "Tey need to make sure the products that shoppers want are available when they choose to shop, and at a value they feel is fair." In addition, Cooke notes, consumers have more options than ever before when it comes to feeding their pets, a fact that can lead to misinformation and information overload. "It's important for retailers to help cut through the clutter in the pet aisle and carry brands and products that consumers recognize and can trust," he adds. F.M. Brown's Campbell — who says that grocery stores and large retail chains are becom- ing more and more interested in carrying a variety of foods for a variety of pets — advises retailers to embrace a multilevel marketing program. "Providing varying qualities of foods at a range of price points is an excellent way to do this," Campbell notes. "Some are interested in lower- priced economy blends, some prefer intermedi- ate premium blends containing a few additional ingredients, and others are willing to pay top dollar for high-quality gourmet blends with a wide variety of species-specifc seeds, grains, fruits, nuts, veggies and other specialized ingredients." E-commerce is also becoming key in today's exceedingly tech-oriented marketplace. But however stores approach it, the pet product market is ripe for retailers that want to capitalize on the pet human- ization trend. As the IBISWorld study "Pet Stores in the U.S." says, the number of pet-owning households will continue to increase, and "indulgent pet parents will continue to drive demand for premium pet food and services." PG Retail Pharmacies Ready for Pet Prescriptions The first place pet owners go to purchase veterinarian- prescribed medicines is expected to change as new distribu- tion models and proposed legislative measures evolve to give consumers more choice, according to new research from Brakke Consulting Inc., an animal health industry consulting and research firm, and Trone Brand Energy, a pet category advertising and marketing insights company. "Changes to the pet pharmaceutical marketplace are go- ing to present opportunities and challenges unlike any the industry has seen," says Ron Brakke, presi- dent of Dallas-based Brakke Consulting. Currently, approximately one-quarter of pharmacists stock pet prescription medi- cation, while 64 percent of the rest believe their pharmacy should stock them. This means a strong majority of all pharmacies are likely to stock pet prescription products as distribution models evolve. Further, as the research demonstrated, pet owners already have a strong desire for the option to pur- chase pet medication from their local pharmacies. "We have identified the pet owners who are early adopt- ers of the new pharmaceutical distribution models, as well as the factors that will have an impact on their usage of the new purchase channels," notes Doug Bar- ton, president of High Point, N.C.-based Trone Brand Energy. Brakke Consulting and Trone Brand Energy plan to release additional findings from their research this coming October. For more information about the research, which can provide insights to help retail pharmacies, manufacturers and veteri- narians navigate the changing landscape, contact Kimberly Ness at 336-819-6933. o p u r c h a s e v e t e r i n a r i a n - e d t o c h a n g e a s n e w d i s t r i b u - s l a t i v e m e a s u r e s e v o l v e t o g i v e d i n g t o n e w r e s e a r c h f r o m m a l h e a l t h i n d u s t r y c o n s u l t i n g r a n d E n e r g y , a p e t c a t e g o r y g h t s c o m p a n y . c e u t i c a l m a r k e t p l a c e a r e g o - d c h a l l e n g e s u n l i k e a n y B r a k k e , p r e s i - n s u l t i n g . n e - q u a r t e r o f p t i o n m e d i - r e s t b e l i e v e h e m . T h i s p h a r m a c i e s c h a s e p e t m e d i c a t i o n f r o m t h e i r " W e h a v e i d e n t i f i e d t h e p e t o w e r s o f t h e n e w p h m o d e l s , a s w e l l h a v e a n i m p a c p u r c h a s e c h t o n , p r e s i d e n T r o n e B r a n d B r a k k e C o n E n e r g y p l a n t o f r o m t h e i r r e s e F o r m o r e i n f o r w h i c h c a n p r o v p h a r m a c i e s , m n a r i a n s n a v i g a c o n t a c t K i m b e 110 | Progressive Grocer | Ahead of What's Next | August 2015 HealtHieR Pets Nestlé Purina offers pet food that delivers nutritional benefits similar to those found in "people food." New products include Purina One smartblend true instinct, Purina Beyond superfood Blend, and Purina Cat Chow Healthy Weight formula.

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