maconda further expands its expertise in pet supplies
maconda News October 2021
maconda has recently been involved multiple times with the rapidly growing pet industry. Extensive experience in the production and trade of food and, related to this, pet food, as well as a long-standing reputation for demanding Commercial Due Diligence, were the necessary ingredients for renewed engagements for the team at the Cologne consulting boutique.
An exciting project allowed us to delve deep into the distribution structures in the pet supplies market. As part of a Commercial Due Diligence, we thoroughly examined the complex business model of an omnichannel provider of pet supplies, operating across several value chain stages in neighboring countries. In doing so, we were able to contribute our extensive experience with the large German market.
For our client, it was important to assess the pandemic-related influences on the already very dynamic industry. The increased pet population is very likely to be sustainable, as the social relevance of pets was impressively confirmed during the pandemic. Post-Corona and with a return to normality, however, the task remains to integrate pets into normal daily life, even outside the home office.
One’s own dietary attitudes and health consciousness are increasingly reflected in pets – through so-called humanization, more and more dietary forms (diet, BARF, low-fat, high nutritional values, organic, vegan & co.) are emerging, which lead to greater willingness to pay and additional sales, but also to more fragmented, niche segments. This and other trends provide sustainable growth impulses – in the mass market, but also in niches. Depending on the type and size of the animal, there is naturally a different need for food, accessories, and supplies – large dogs, for example, need more and different food than rabbits. Cats are still Germany’s number one pet, followed by dogs. Today, almost every second household in Germany has a pet – and the trend is rising.
Looking at distribution channels, the pandemic proved to be a turbo not only for online retail. Brick-and-mortar pet food retailers also benefited – quite unlike many other retail businesses. Nevertheless, the online shift is immense. This is another reason why we intensively examined the various distribution channels and their potential. On the e-commerce side, the usual web metrics and online shop KPIs were in focus.
In another engagement, we looked at a rapidly growing D2C brand specializing in BARF feeding, i.e., biologically appropriate raw feeding for dogs & cats. In addition to strong online growth with existing and new customers, the focus here was on the potential and limits of the served niche for BARF products, as well as the actual competition from industry giants Zooplus and Fressnapf, which tend to focus on mass-market-compatible products.
From past transaction-related and search engagements for investors, we also have a comprehensive insight into the German manufacturer landscape for pet food, which is sold as a brand and under private label, and direct access to some companies. This helps with CDDs to accurately determine a target’s market positioning, but also with Buy & Build strategies when it comes to realizing synergies or gaining access to new customers and geographical markets.
We further deepened our expertise in this exciting industry in October by participating in the annual Pet Congress. We are regularly engaged in this industry and naturally want to keep our long-standing knowledge up-to-date. The core topic was “The Pet Industry after Corona – Trends and Business Models for the Future.” Participants discussed developments during and after Corona with high-profile speakers, and maconda also actively participated.
We are happy to assist you as a competent and trusted partner. Benefit from our many years of experience in the pet industry, as well as in Commercial Due Diligence and value enhancement projects.
maconda further expands its expertise in pet food and supplies
The maconda team has repeatedly dealt with various food categories and pet food in recent years and successfully completed numerous projects. These included many Commercial Due Diligence projects, engagements for strategic realignment and business model optimization, as well as projects to improve operational performance.
Intensive Industry Experience: Dog food | Cat food | Wet and dry food | Snacks | BARF | Pet supplies | Brands | Private Label | Premium segment | Omnichannel | Specialist retail | Veterinarians | Fulfillment | Dropshipping | Wholesale | various food categories | consumer goods of all kinds