July
05
Posted on 05-07-2008
Filed Under (Pet Foods) by Kim Kat

The pet food market has been dominated in the last few years by the acquisition of big companies by even bigger companies. With $15 billion a year at stake in the U.S. and rapidly expanding foreign markets, it’s no wonder that some are greedy for a larger piece of the pie.

  • Nestlé’s bought Purina to form Nestlé Purina Petcare Company (Fancy Feast, Alpo, Friskies, Mighty Dog, Dog Chow, Cat Chow, Puppy Chow, Kitten Chow, Beneful, One, ProPlan, DeliCat, HiPro, Kit’n’Kaboodle, Tender Vittles, Purina Veterinary Diets).
  • Del Monte gobbled up Heinz (MeowMix, Gravy Train, Kibbles ’n Bits, Wagwells, 9Lives, Cycle, Skippy, Nature’s Recipe, and pet treats Milk Bone, Pup-Peroni, Snausages, Pounce).
  • MasterFoods owns Mars, Inc., which consumed Royal Canin (Pedigree, Waltham’s, Cesar, Sheba, Temptations, Goodlife Recipe, Sensible Choice, Excel).

Other major pet food makers are not best known for pet care, although many of their household and personal care products do use ingredients derived from animal by-products:

  • Procter and Gamble (P&G) purchased The Iams Company (Iams, Eukanuba) in 1999. P&G shortly thereafter introduced Iams into grocery stores, where it did very well.
  • Colgate-Palmolive bought Hill’s Science Diet (founded in 1939) in 1976 (Hill’s Science Diet, Prescription Diets, Nature’s Best).

Private labelers (who make food for “house” brands like Kroger and Wal-Mart) and co-packers (who produce food for other pet food makers) are also major players. Three major companies are Doane Pet Care, Diamond, and Menu Foods; they produce food for dozens of private label and brand names. Interestingly, all 3 of these companies have been involved in pet food recalls that sickened or killed many pets.

Many major pet food companies in the United States are subsidiaries of gigantic multinational corporations. From a business standpoint, pet food fits very well with companies making human products. The multinationals have increased bulk-purchasing power; those that make human food products have a captive market in which to capitalize on their waste products; and pet food divisions have a more reliable capital base and, in many cases, a convenient source of ingredients.

The Pet Food Institute — the trade association of pet food manufacturers — has acknowledged the use of by-products in pet foods as additional income for processors and farmers: “The growth of the pet food industry not only provided pet owners with better foods for their pets, but also created profitable additional markets for American farm products and for the byproducts of the meat packing, poultry, and other food industries which prepare food for human consumption.”

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