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06/29/2021

Pet food private brands drive diversification, differentiation

Manufacturer of pet food and treats, Alphia, looks at how much shoppers spread out among various shopping channels and how retailers differentiate through store brand products.
Dan Ochwat
Executive Editor
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How consumers buy pet goods (online vs. in-store) and where they buy them (from Chewy to local pet stores to larger chain stores) greatly varies — and part of what drives this diversification is private label.

Just look at this breakdown of where U.S. consumers buy pet goods: According to Statista, 22% of consumers purchased pet products from mass merchants like Target and Walmart; 21% purchased from supermarkets; 16% from pet chains like PetSmart and Petco; 11% from online pet suppliers like Chewy; and 6% from Amazon.

Consumer buying is all over, and each of those channels use private label to speak directly to their customer base and differentiate their assortment. In this blog from Alphia, a manufacturer of pet food and treats based in Bern, Kan., the company explains just how important having a private brand is to a retailer’s identity and assortment. The blog also shares the steps to begin creating a private brand.

For example, retailers choose what pet food assortment to play in, such as mainstream products, premium or super premium (real meats, grain-free formulas and maybe a taste of the exotic like alligator, lamb or duck). There’s cost considerations, volume, a range of 60-plus food formulas to choose from, packaging considerations and more. Each decision helps differentiate.

Read the full post here.