This article was published in the July 2024 issue of Pet Food Processing. Read it and other articles from this issue in our July digital edition.
Increased market reach, enhanced credibility and trust, resource optimization and innovative products are some of the many benefits of successful distribution through an effective brand partnership. Distributors play a dynamic and vital role of communicating a brand’s values by sharing product benefits and unique selling points — all while building and maintaining critical relationships with retailers.
Independent Pet Supply, Snohomish, Wash., evaluates brands based on a range of attributes such as product quality, brand reputation, sustainability practices and market positioning. Factors which can contribute to an attractive long-term partnership include brand stability, growth prospects and the ability to maintain a strong relationship over time, according to Neda Khorami, founder and chief executive officer of Independent Pet Supply.
When seeking out brand partners, Independent Pet Supply looks for products that meet high standards of quality and safety. For the company, this includes products with natural ingredients, sustainable sourcing and adherence to regulatory requirements. The company also likes to see manufacturers that prioritize a commitment to sustainability, whether that is through eco-friendly packaging, sustainable ingredient sourcing or efforts to reduce carbon emissions.
“We help brands increase visibility, generate awareness and drive sales through targeted marketing efforts,” said Neda Khorami of Independent Pet Supply.
“We help brands increase visibility, generate awareness and drive sales through targeted marketing efforts,” Khorami said. “This includes cultivating relationships with our retailers to promote product placement, increase shelf space and secure favorable merchandising opportunities. We are a valuable source of insight for brands seeking to improve existing products or develop new ones.”
The intelligence-gathering process employed by Independent Pet Supply also includes providing retailers with support and guidance to help them maximize sales and profitability, as well as acting as a feedback loop for brands on product performance, customer feedback and market trends.
“We develop sales strategies, negotiate pricing and terms, and implement sales initiatives to achieve sales targets and objectives, identify new market opportunities, develop distribution channels, and enter new geographic regions to grow brand presence and market share,” Khorami continued.
Because a distributor could easily see hundreds of new brands in a month, a strategic approach is required. Distributors are on the lookout for a brand that provides a level of uniqueness that sets it apart from what’s already in the market, according to Zach Sheng, co-founder and chief taste officer of Charmy Pet, Toronto.
When looking for a distribution partner, Charmy Pet made it a priority to identify distribution partners that shared similar values to the brand. The company conducted independent research on small, medium-sized and large-scale distributors in the United States. This included consulting the Pet Industry Distributors Association as a source for seeking distributors on a state-by-state basis.
Coming together
Pet product distributors such as Pet Food Experts, Pawtucket, RI, provide opportunities for their retailer partners to find out about new products at their buying events. Pet Food Experts (PFX) has two PFEXPO events — one on the West coast in the spring and one on the East coast in the fall. The two-day event includes shopping opportunities from vendor partners both for pet food and pet care supplies, including show-specific deals.
Pet Food Experts holds two buying events, or PFEXPOs, each year to bring retailers and vendors together.
| Source: Pet Food Experts“Our PFEXPO shows not only help solidify our partnership with our vendor partners but also gives them the opportunity to meet face-to-face with our retailer partners,” said Stacey Picher, marketing and events manager for PFX. “This allows vendors to make new connections, as well as further develop current relationships with retailers.
“Exhibitors who have participated in PFEXPO consistently rave about the exceptional chance to elevate their brand visibility, reach new heights in sales, cultivate strong relationships with current retailers, connect with new potential retail partners, and engage with key industry experts,” she added.
Phillips Pet Food & Supplies, Easton, Pa., also offers West and East coast shows for their retailer and processor partners.
Level-setting expectations
While strong, mutually beneficial partnerships should always be built around effective communication, collaboration and trust, there are times when conflicts will inevitably arise. This may include challenges that include convincing retailers to carry the brand, the negotiation of pricing and terms, and ensuring consistent product placement and promotion.
The expansion of distribution into new regions can also create growing pains that may require compliance with different regulatory requirements and standards. This might include obtaining necessary permits and certifications and ensuring product labeling and packaging compliance. Expansion will often need significant financial investment in areas such as marketing, logistics and infrastructure. Other challenges may include managing cash flow, securing financing for expansion efforts, and ensuring a positive return on investment.
Risks must also be assessed for the potential volatility of supply chain reliability, financial stability and regulatory issues. Before entering a new market, Madavi Sorriyapperuma, special project manager for Charmy Pet, recommends brands thoroughly research the local landscape, including supply chains, regulations and consumer preferences.
“Often, distribution partners seek exclusivity in certain regions, which can pose challenges for brands looking to diversify their distribution channels,” she continued. “By understanding these factors, brands can better navigate the complexities of regional expansion and make informed decisions to ensure successful market entry.”
Navigating challenges seen and unforeseen will require measures of flexibility and patience backed by an effective method of conflict resolution. By using realistic expectations in alignment with the objectives of the distributor and the brand, both parties can improve alignment through open communication, active listening and a commitment to find mutually acceptable solutions.
Without such an understanding, a partnership could disintegrate under the pressure of misunderstandings, ineffective collaboration and the misalignment of goals. This is especially true if one party feels they are contributing more than they are receiving with imbalances contributing to resentment and dissatisfaction — ultimately undermining the partnership’s sustainability, Khorami cautioned.
“Creating realistic expectations allows the brand to have direction toward realistic goals,” she continued. “However, if false expectations are created through misunderstanding or miscommunication, both parties are left dissatisfied.”
Tracking the strategy
Because different distributors use a variety of reporting systems each month, Charmy Pet recommends building a unique system to analyze the data and monitor the numbers. For this purpose, the company chose to create its own tool that uses key performance indicators (KPIs) to assess the effectiveness of its distribution strategies. These KPIs include considerations for the number of stores onboarded monthly, the monthly reorder rate of existing stores, and if the company is meeting its quarterly goals.
Holding biannual PFEXPO events provides Pet Food Experts with the opportunity to solidify partnerships with vendors. Retailers have the opportunity to see new products and take advantage of special deals when they attend Pet Food Experts’ buying events.
| Source: Pet Food Experts“These metrics help us ensure that our partnerships are effective and that we are consistently progressing toward our business objectives,” Sheng said. “This customized approach allows for more accurate tracking and analysis, tailored specifically to our needs and goals.”
Staying on the same page is also critical for understanding and staying up to date on consumer trends and demand. This includes the identification of gaps in the market and opportunities for growth to determine the right mix of brands and products that will be successful.
Many brands choose to remain hands-on in this process, conducting market research in target areas to enhance brand marketing and product development. A brand must stay closely connected with the end consumer to understand market tastes and pain points to effectively meet consumer needs, Sorriyapperuma said.
One consumer trend that shows no signs of abating is the desire for health and wellness in one’s pet. Chicago-based Mintel found a rising importance among pet parents to improve the health and wellness of their pets. As treasured members of the family, owners look to increase the number of healthy, happy years for their pets.
Depending on the consumer, this might include seeking out alternative therapies and natural solutions such as raw and semi-raw foods, freeze-dried raw foods, alternative pet food proteins, DNA testing for nutritional insights, CBD supplements and personalized supplement formulations.
The pursuit of health also encompasses the wellness of people, pets and the planet with sustainability efforts championed by some of the top distributors in the United States. In 2023, three distributor competitors, Animal Supply Co., Grand Prairie, Texas; Pet Food Experts and Phillips Pet Food & Supplies made a collective commitment to the Pet Sustainability Coalition to advance business through profitable environmental and social practices. The joint support was deemed, “symbolic of a commitment to driving systemic change that will have an impact for decades to come,” according to Michael Baker, president and CEO of Pet Food Experts.
With its people-first approach to pets, Pet Food Experts, is also teaming with Pets in the Classroom, an educational grant program, to bring one-on-one animal-assisted therapy into the classroom.
In May, a company blog from Phillips Pet Food & Supplies announced its support for Operation Good Boy, which recognizes the essential role dogs play in supporting the mental wellbeing of US veterans. The Operation Good Boy line aims to enhance the health and happiness of dogs through high-quality collars, leashes, toys, treats and supplements. A portion of Operation Good Boy’s sales support charities dedicated to improving the lives of veterans and their K9 companions.
Over the years, the industry has seen a number of successful brand partnerships such as Nestlé Purina and Petco, Mars Petcare brands Royal Canin and Pedigree and veterinarian clinics featuring specialized diets and health-focused pet food options; Blue Buffalo and Chewy; and Hill’s Pet Nutrition and veterinarian hospitals. These examples illustrate some of the varied and nuanced paths possible through brand partnership. Because the path of partnership is rarely straightforward, a solid foundation of communication, collaboration, flexibility and alignment is necessary for strong, resilient partnerships.
“Through the development of clear agreements and clear identification of individual and mutual goals within a culture of communication and collaboration, partners can drive collective success and achieve sustainable growth over the longer term,” Khorami concluded.
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