TRENDS AND INSIGHTS IN THE GLOBAL PET CARE MARKET2014

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NEW INSIGHTS: MARKET DEVELOPMENTS

NEW TRENDS

KEY FINDINGS 2014

PASSPORT: PET CARE DATA UPDATE FOR 2014

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NEW INSIGHTS: MARKET DEVELOPMENTS

NEW TRENDS

KEY FINDINGS 2014

PASSPORT: PET CARE DATA UPDATE FOR 2014

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Private label producer acquires ninth global player.

Back in 2013…

NEW INSIGHTS: MARKET DEVELOPMENT

Del Monte acquires premium, niche, holistic Natural Balance.

Logo taken from company website

http://www.edel-cat.de/praes.php?was=home

Vitakraft granted permission

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Will Procter & Gamble’s Iams be the next target?

And we asked….

NEW INSIGHTS: MARKET DEVELOPMENT

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Iams Value Share 2004/2009/2012

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And in 2014….

NEW INSIGHTS: MARKET DEVELOPMENT

Premium pet food manufacturer Blue and niche player Freshpet are planning an IPO.

Pets at Home also had its IPO in 2014.

Source: http://www.petsathome.com

Source: http://freshpet.com

Source: http://bluebuffalo.com

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2014 has been marked by the Food and Drug Administration’s (FDA) Food Safety Modernization Act (FSMA), with the FDA aiming to apply the same standards to pet food as human food.

Nestlé filed a lawsuit against Blue Buffalo, on the grounds that Blue Buffalo’s claim that its products contain no chicken or poultry by-products, corn or grain is dishonest.

The debate around ingredients becomes more prominent

NEW INSIGHTS: MARKET DEVELOPMENT

Source: http://bluebuffalo.com

Source: https://www.purina.com

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In January 2014, Zuke’s Performance Pet Nutrition – a US producer of cat and dog treats – was acquired by Nestlé SA.

And continuous M&A

NEW INSIGHTS: MARKET DEVELOPMENT

Logo Source: https://www.purina.com

http://www.zukes.com

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After years of declining share, Procter & Gamble's brands Iams, Eukanuba and Natura brands are acquired by Mars in North America and other markets, excluding Europe.

And the long expected occurs

NEW INSIGHTS: MARKET DEVELOPMENT

http://www.mars.com/global/press-center/media-library.aspx?query=images

http://www.naturapet.com/brands/innova

http://www.eukanuba.com/pet-food/dog-food

http://www.pg.com/en_UK

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The added share gained by the acquisition is particularly relevant in the North American market, bringing Mars much closer to Nestlé SA.

With particular importance in North America

NEW INSIGHTS: MARKET DEVELOPMENT

0 20 40

Nestlé

Procter & Gamble

Colgate-Palmolive

Blue Buffalo

Mars Inc

% value

Premium Cat Food 2013

0 20 40

Nestlé

Procter & Gamble

Colgate-Palmolive

Blue Buffalo

Mars Inc

% value

(Possible) Premium Cat Food 2014

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And even overtaking Nestlé SA in premium dog food, the fastest growing category in 2014.

And a special relevance in premium dog food

NEW INSIGHTS: MARKET DEVELOPMENT

0 10 20 30 40

Nestlé

Procter & Gamble

Colgate-Palmolive

Blue Buffalo

Mars Inc

Premium Dog Food 2013

% value

0 20 40

Nestlé

Procter & Gamble

Colgate-Palmolive

Blue Buffalo

Mars Inc

(Possible) Premium Dog Food 2014

% value

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M&A activity is well-covered in pet care analysis

NEW INSIGHTS: MARKET DEVELOPMENT

WHAT IS PASSPORT

NEW INSIGHTS: MARKET DEVELOPMENTS

NEW TRENDS

KEY FINDINGS 2014

PASSPORT: PET CARE DATA UPDATE FOR 2014

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The rise of gourmet

NEW INSIGHTS: NEW TRENDS

Purina Pro Plan, Duo Delice, FranceMay 2013

Purina Pro Plan, Savor Aditions, USJuly 2014

Master Dog, NutriPro, ChileMid 2013

http://www.proplan-dog.com/gb/Pages/default.aspx

http://www.masterdog.cl/productos

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Grain-free goes mainstream

NEW INSIGHTS: NEW TRENDS

Nutram, Grain Free, IsraelMid 2013

Naturea, Naturea Petfoods, Portugal

4th quarter 2013

Merrick Grain Free, Merrick Pet

Care Inc, MalaysiaAugust 2013

http://www.nutram.com/grain-free.php

http://www.merrickpetcare.com/consumer/products/list.jsp?categorySort=1&cat1=6&cat2=7&categories=Dog-Classic-

Recipes

http://www.natureapetfoods.com/ourproducts_petfoods_naturea1.php?l=1

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Raw power! Niche becomes more prominent

NEW INSIGHTS: NEW TRENDS

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Fruit and exotic to the fore

NEW INSIGHTS: NEW TRENDS

Dr Dog, Huechaewoom Co Ltd, South KoreaOctober 2013

Vondi, South AfricaFrozen food with Ostrich

Green Dog, UKCaviar and Lobster

June 2014

Source: www.okdoctordog.com

http://www.vondis.co.za

http://www.greendogfood.co.uk

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Evolving therapeutic diets

NEW INSIGHTS: NEW TRENDS

Total Alimentos, EquilibrioMid 2013, Brazil

Premier PetDecember 2013, Brazil

Nisshin Pet Food IncMarch 2013, Japan

http://www.equilibriototalalimentos.com.br/caes/equilibrio-veterinary.html

http://www.premierpet.com.br/alimentos-para-caes/super-premium/

premier-nutricao-clinica

Source: http://www.nisshin.com/company/release/details/130218_023402.html

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Multi-functionality of functional food

NEW INSIGHTS: NEW TRENDS

Visan Optima – anti-hairball 2013, Morocco

Nori Pet Shanghai Co(Chondroitin, taurine)

Late 2013, China

Sanabelle Sensitive December 2012, India

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A darker shade of green: Eco products gain more visibility

NEW INSIGHTS: NEW TRENDS

Zisc, West Paw Design

Coco Cat, Coco Farm Italy

WHAT IS PASSPORT

NEW INSIGHTS: MARKET DEVELOPMENTS

NEW TRENDS

KEY FINDINGS 2014

PASSPORT: PET CARE DATA UPDATE FOR 2014

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Latin America remained the fastest growing region in 2014 and in constant terms, the sole region to see an acceleration in growth.

Eastern Europe, one of pet care’s stellar performers, saw a slight slowdown in growth but still quite a good performance, at 5%. Russia, Poland and Hungary, the largest markets, all had a positive performance.

Western Europa and North America, the largest regions in value terms, continued to see only sluggish growth.

Regional disparities: Emerging markets still lead

NEW INSIGHTS: KEY FINDINGS 2014

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2013 2014

% g

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Pet Care Y-o-Y Growth (Constant) by Region 2013-2014

Middle East andAfrica

Asia Pacific

North America

Western Europe

Australasia

Latin America

Eastern Europe

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Pet indulgence an important driver

NEW INSIGHTS: KEY FINDINGS 2014

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Dog food Cat food Dog treats Cat treats Bird food Fish food Smallmammal

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Pet Food: Retail Value Sales by Category 2009/2014

2009 2014 % CAGR

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Only premium food expected to gain across all regions

NEW INSIGHTS: KEY FINDINGS 2014

-100 400 900 1,400 1,900 2,400

Premium dog

Premium cat

Mid-priced dog

Mid-priced cat

Economy dog

Economy cat

US$ million

Absolute Value Growth 2014-2019

AP AU EE LA MEA NA WE

WHAT IS PASSPORT

NEW INSIGHTS: MARKET DEVELOPMENTS

NEW TRENDS

KEY FINDINGS 2014

PASSPORT: PET CARE DATA UPDATE FOR 2014

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Other pet products: Deeper analysis and insight

PASSPORT: PET CARE DATABASE UPDATES

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Pet Care System: a world full of data, analysis and insight

PASSPORT: PET CARE DATABASE UPDATES

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A focus on distribution and retailing trends

PASSPORT: PET CARE DATABASE UPDATES

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And wealth of country-specific information beyond reports

PASSPORT: PET CARE DATABASE UPDATES

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Data on price bands with further analysis in country reports

PASSPORT: PET CARE DATABASE UPDATES

Source:

http://www.pedigree.com

https://www.friskies.com

https://www.whiskas.com

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Information on pet population and forecasts

PASSPORT: PET CARE DATABASE UPDATES

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Detailed information on pet healthcare and pet food

PASSPORT: PET CARE DATABASE UPDATES

Flea/Tick

Worming

Others

Senior

Adult

Kitten/Puppy

http://uk.frontline.com/Pages/Products.aspx

http://www.hillspet.com/ideal-balance/ideal-balance-dog-food.html

https://www.gourmet-cat.co.uk/Products/Details.aspx?BrandRangeId=40&ViewIds=33,34,40,41&CrsStartIdx=1

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