Smucker, which in April sold several pet-food brands to Post Holdings including Rachael Ray Nutrish, 9Lives and Kibbles ‘n Bits, said last month that net sales in the U.S. This is in part because of the varying price points for offered products, said finance chief Tucker Marshall. Smucker, which owns cat food brand Meow Mix as well as pet treat options including Milk-Bone and Pup-Peroni, the trade-down effect has been muted. Consumers are more discerning, Chewy Chief Executive Sumit Singh told analysts last month, noting a shift to dry food over wet food in July, along with cuts to pet treats.įor food-and-beverage giant J.M. Pet food and product retailers Petco Health & Wellness and Chewy are similarly seeing a shift among some consumers toward value-driven spending. “That is still likely, and we believe the dominant driver of growth in the pet segment, even if right now there is a shift in the short term toward value and maybe a readjustment as the consumer settles into maybe a more cautious state." “It’s very clear we’re going through an environment where pet households and pet parents are seeking value, in everything from pack sizes to where they shop for pet food."īut people often treat their pets like children, the CFO said, which drives them toward premium offerings for their animals. Moreover, he added, pet owners are dealing with rising costs for pet items due to inflation. Part of the shift has to do with supply-chain challenges that disrupted the pet-food industry during the pandemic, which forced consumers to consider alternative pet-food options, Bruce said. “As best as we can read the present environment…our guidance isn’t built on a huge hockey stick change in the pet operating environment," he said. The maker of Cinnamon Toast Crunch cereal and Pillsbury dough isn’t anticipating the pressure on its pet-food business to let up in the near-term, Chief Financial Officer Kofi Bruce said at the conference. 20 is set to report its fiscal first-quarter results, shared the figures and reaffirmed its full-year outlook for the current fiscal year at a conference this month. The average analyst expectation is for 4.8% growth and a 19.2% profit margin. ![]() ![]() The Minneapolis-based company this month said that as a result of these challenges, it expects organic net sales in its pet segment to be roughly flat in its first quarter compared with the prior-year period and the segment’s operating profit margin to be around 19%. General Mills, which owns the Blue Buffalo line of premium pet foods, is seeing the effects of pet owners trading down or looking for smaller-size food options. Premium pet food sales growth, meanwhile, decelerated to 8.5% in the second quarter, compared with 10.7% growth in the first quarter and 21.3% growth in the prior-year period, the data show. ![]() public and private companies slowed to 14.8% for the second quarter of the year, compared with 20.8% growth in the first three months of 2023 and 18.3% a year earlier, according to an analysis of data from Circana by research firm Consumer Edge. Growth in non-premium pet food sales at U.S. “This time is appearing to be different." That’s what history would suggest," he said. “In times of recession or economic stress, first you trade down on your own food, then your kid’s food and then your dog’s food. Premium dry dog food, for instance, is losing share at an accelerating rate-down 2.9 percentage points in the three-month period ended in July compared with a year earlier-and across all income groups, suggesting that the desire for savings is broadly felt, said Max Gumport, a U.S. With the cost of pet food up nearly 11% from a year ago, according to the July consumer-price index, animal owners are trading down from more expensive gourmet brands or shifting to smaller pack sizes, finance chiefs and analysts said.
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