Latest natural-food trend going to the dogs

DSN Retailing Today, March 14, 2005 by Doug Desjardins

The fact that the $31 billion pet industry prospered through the 2001-2003 recession shows that people are willing to spend money on their pets even during tough times. And in the past few years, much of that money has been going toward sales of natural pet foods and treats.

Sales in the natural food and supplement category are increasing by double digits each year as consumers grow more aware of what goes into their pets' food. And this trend is not lost on manufacturers and retailers who are tapping into the growing business that puts a premium on educating consumers.

"When you look at the rendered product that goes into pet food, you really can't tell what the source is. It could be road kill," said Brad Johnson, pet supplies category manager for Wild Oats Markets.

Johnson says the 104-store natural food chain based in Boulder, Colo., launched its Pet Promise campaign last October that uses pamphlets and shelf-talkers in the pet section to give consumers information about natural foods and supplements.

"Pet Promise is designed mainly to let people know what's not in our products, things like additives and rendered product," said Johnson. "And people like it because they know they're doing something good for their pets."

And that's important given that approximately 60% of people who shop at natural food stores are pet owners, a much higher rate than the national average. Johnson said natural pet supply sales are up more than 20% since Pet Promise was launched last October. "And this is only the beginning," said Johnson, "because this was a category we neglected for a long time."

Nearly every major pet food brand now has several types of natural foods. They include Nature's Choice from Science Diet, Natural Blend Holistic Dog Food and Solid Gold Holistic Blend.

Petco Animal Supplies has been carrying natural foods for more than a decade but has seen its product selection expand rapidly the last few years as suppliers have stepped up to satisfy demand.

"We carry about 100 different SKUs of [natural] food and more than 60 different kinds of natural and organic treats," said Shawn Underwood, spokesman for the 730-store Petco chain based in San Diego, Calif.

Like Johnson at Wild Oats, Underwood says demand for more natural pet foods seems linked to the preferences of customers. "More and more people are incorporating natural foods into their diets and they're doing the same for their pets," said Underwood.