I. Executive Summary

Scope and Methodology
Two Product Categories
The Retail Market
Data Sources

The Products
Four Product Forms and Eight Segments
Trends in New Product Introductions

The Market
Sales of $9.8 Billion in 1999
Table 1-1: U.S. Retail Sales of Pet Food, by Category, 1995-1999 Dog Food Sales
Cat Food Sales
Supermarket Sales, by Product Category Dog Food Sales Larger Than Cat Food Dry Holds 58.5% Share of Dog Food Sales Cans Claim 53% of Cat Food Sales Figure 1-1: U.S. Supermarket Sales of Pet Food Retail Market, by Outlets
Table 1-2: Share of U.S. Pet Food Sales, by Retail Outlet, 1989 Imports/Exports
Factors Fueling Growth of the Market Projected Market Growth
Table 1-3: Projected U.S. Retail Sales of Pet Food, by Category, 2000-2004

The Marketers
Diversified Brand Manufacturers
Branded Specialty Manufacturers Regional and Private Labels
Supermarket Sales and Market Share

Distribution and Retail
Changing Patterns of Distribution
Retail

The Consumer
Dog Food Versus Cat Food Purchasers

II. The Products

Scope and Background
Two Product Categories
Four Product Forms and Eight
Segments The Retail Market
History of Commercial Pet Food

Ingredients
Nutritious Balance: Dogs Versus Cats
Protein: Animal Sources
Protein: Plant Sources
Carbohydrates
Fat
Fat Content and Feline Urinary Syndrome
Controversial Additives

Product Forms
Dry Pet Food
Various Shapes and Flavors
Advantages of Dry Food
Disadvantages of Dry
Food Canned Food
A Wide Variety of Flavors and Textures
Palatability and Digestibility Are Major Advantages
Snacks and Treats: Usually Dry or Semi-Moist Forms
Wide Assortment of Snack Sizes, Shapes
Advantages and Disadvantage of Snack Use
Semi-Moist Pet Food
A Variety of Shapes, Textures, and Flavors
Advantages and Disadvantages of Semi-Moist Food

Product Types
Lifestage Product Types
Activity Level Product Types
Special Dietary Needs Product Types
Products Formulated with Better-Quality Ingredients
Table 2-1: Better-Quality Product Attributes
Better-Quality Product Types
Natural, High-Nutrition, Gourmet
Marketing Classification of Upscale Product Types: Premium, Specialty, Superpremium

Packaging and Sizing: Dog Food
Dry Food
Canned Food
Dog Snacks/Treats
Semi-Moist Food

Packaging and Sizing: Cat Food
Dry Food
Canned Food
Cat Snacks/Treats
Semi-Moist Cat Food

Labeling and Regulations
U.S. Government Sets Four General Guidelines
Proper Product Identification
Net Quantity Statement
Manufacturer's Name and Address
List of Ingredients
Specific Guidelines Set at State Level
Four Product Nomenclature Rules
The "95%" Rule
The "25%/Dinner" Rule
The "3%/With" Rule
The "Flavor" Rule
Nutritional Adequacy Statements
Nutritional Claims and Product "Families"
Feeding Directions
Calorie Statement
Guaranteed Analysis
Nutrient Analysis: Canned Versus Dry
Cans and Moisture Content: Labeling Exceptions
Snacks/Treats: Labeling Exceptions

New Product Introductions
Trends in New Product Introductions
New Product Listings
Barking Dogs, Inc
Dad's Products
Dayton Nut Specialties
Desert Dog Treat Company
Doane Pet Care Enterprises
Halo Purely for Pets
Hartz Mountain Corporation
H.J. Heinz
Hill's Pet Nutrition, Inc.
Iams Company
Kal Kan Foods
Nabisco
Natural Choice, Inc
Nature's Recipe Pet Foods
Nestlé USA
Pet Goods Manufacturing
Pet Products Plus
Ralston Purina
Wedgie Dietetic Foods

III. The Market

Market Size and Growth
Sales of $9.8 Billion in 1999
Table 3-1: U.S. Retail Sales of Pet Food, by Category, 1995-1999 Dog Food Sales
Cat Food Sales
Food Versus Nonfood Stores
Table 3-2: U.S. Retail Sales of Pet Food, by Retail Sector, 1995-1999 Supermarket Sales, by Product Category
Table 3-3: U.S. Supermarket Sales of Pet Food, by Product Category and Segment, 1989 and 1999

Market Composition
Dog Food Sales Larger Than Cat Food Sales
Dry Holds 58.5% Share of Dog Food Sales
Cans Claim 53% of Cat Food Sales
Dog Food Sales, by Segment
Figure 3-1: U.S. Supermarket Sales of Pet Food
Table 3-4: U.S. Supermarket Sales of Pet Food, by Product Category and Segment, 1982 and 1999
Cat Food Sales, by Segment
Retail Sales, by Outlet
Table 3-5: Share of U.S. Pet Food Sales, by Retail Outlet, 1989
Private Label Sales, by Outlet
Figure 3-2: U.S. Retail Sales of Pet Food, by Sector: Food vs. Nonfood Outlets, 1989, 1995, 1999
Table 3-6: Private Label Share of U.S. Pet Food Sales, by Product Category: Supermarkets Versus Mass Merchandisers, 1999 Supermarket Sales, by Marketer
Table 3-7: U.S. Supermarket Sales of Pet Food, by Leading Company, 1999

Imports/Exports
Overview
Table 3-8: Value of U.S. Imports and Exports of Pet Food, 1994-1998 Table 3-9: Value of U.S. Exports of Pet Food, by Country of Destination, 1998
United States Leading Global Pet Food Exporter

Factors Fueling Growth of the Market
Pet Population on the Rise
Cats Still Lead Dogs in Pet Mix
Reasons for the Rise in Pets
Role of Heightened Nutritional Awareness
Mass Merchandisers Carve Out Low End
Table 3-10: Projected U.S. Retail Sales of Pet Food, by Category, 2000-2004

IV. The Marketers

Overview
Diversified Brand Manufacturers
Branded Specialty Manufacturers
Regional and Private Labels

Market Share
Traditional Retail Players Lead Over Entire Market
Table 4-1: Leading U.S. Pet Food Manufacturers, 1999
Supermarket Sales and Market Share
Overall Standings
Table 4-2: U.S. Supermarket Sales of Pet Food, by Leading Company, 1999
Ralston Maintains Traditional Lead
Table 4-3: U.S. Supermarket Sales and Share of Dry Dog Food, by Leading Company, 1999
Nestlé Is the Number Two Manufacturer
Table 4-4: U.S. Supermarket Sales and Share of Canned Dog Food, by Leading Companies, 1999
Table 4-5: U.S. Supermarket Sales and Share of Dog Snacks and Treats, by Leading Companies, 1999
Table 4-6: U.S. Supermarket Sales and Share of Semi-Moist Dog Food, by Leading Companies, 1999
Table 4-7: U.S. Supermarket Sales and Share of Dry Cat Food, by Leading Companies, 1999
Table 4-8: U.S. Supermarket Sales and Share of Canned Cat Food, by Leading Companies, 1999
H.J. Heinz in Third Place
Kal Kan Trails Heinz
Table 4-9: U.S. Supermarket Sales and Share of Canned Cat Snacks and Treats, by Leading Companies, 1999
Table 4-10: U.S. Supermarket Sales and Share of Semi-Moist Cat Food, by Leading Companies, 1999
Overall Standings: Dog Food Versus Cat Food
Dog Food
Table 4-11: U.S. Supermarket Sales and Share of Dog Food, by Leading Companies, 1999
Cat Food
Table 4-12: U.S. Supermarket Sales and Share of Cat Food, by Leading Companies, 1999

Consolidation and the Competitive Situation

Competitive Profile: Doane Pet Care Enterprises
Overview
Pet Food Products
Wal-Mart the Leading Customer
Windy Hill Acquisition

Competitive Profile: H.J. Heinz Company
Overview
Number Three in Pet Food
Well-Balanced Portfolio

Introduction of Pounce Hairball
Treatment Introduction of Four-Packs

Competitive Profile: Hill's Pet Nutrition, Inc.
Overview Pet Food Lines
Sales Overseas
Hill's Strengths
Targeting Veterinarians
New Product Introductions

Competitive Profile: Iams Company
Overview
Markets Through Specialty
Channels Iams Revolutionizes Dry Pet Food
Leading Brands
Iams Reformulates Products

Competitive Profile: Kal Kan Foods, Inc.
Overview Mars, Inc.
Entry into Pet Food Market
Kal Kan Competes in Most Pet Food Categories
New Products

Competitive Profile: Nabisco, Inc
Declining Sales for Milk-Bone
Overview of Nabisco
New Milk-Bone Products

Competitive Profile: Nestlé USA, Inc
Overview
Origins of Friskies Cat
Food Acquisition of Alpo
Major Brands
New Product Introductions
Friskies Dental Diet

Competitive Profile: Nutro Products, Inc
Overview Nutro Brands
Dried Chicken and Lamb
New Relationship with PETsMART

Competitive Brief: Natura Pet Products, Inc
Healthy Pet Food
Four Natura Brands
Sells Only Through Pet Store Retailers

Competitive Profile: Ralston Purina Company
Ralston Purina Still on Top
Dry Pet Foods
Other Products
Company Overview
Company History
Formidable Strengths
Possible Future Worries
Total Pet Care Program
New Metallized Packaging

Competitive Brief: Sunshine Mills, Inc
Overview
Dry Pet Food Products
Company Brands

V. Distribution And Retail

Distribution
Changing Patterns of Distribution
Distribution Strategies
Independent Distributors in Trouble

Retail
Food Stores Remain Primary Outlets
Impressive Success by Mass Merchandisers Figure 5-1: Share of U.S. Pet Food Sales, by Retail Outlet, 1999 Pet Superstores Gaining Sales
Margins
Supermarkets
Superpremium Strategy
Pet Superstores
Pet Superstores Appeal to Many Consumers Leading Pet Superstore Chains
Pet Food Is the Core of the Business
Emphasis on High-Margin Specialty Products
Pet Stores
Effects of Competition with Superstores
Advantages of Traditional Pet Stores
Pet Stores May Need a Facelift
Internet Distribution Begins

Competitive Profile: Petco Animal Supplies
Overview
History
Devine Guides PETCO
Expansion of Distribution Network

Competitive Profile: PETsMART, Inc
Overview
History
New Relationship with Nutro
PETsMART Direct

VI. The Consumer

Rising Pet Population
Strong Pet Relationships

Consumer Demographics
A Note About Simmons Market Research Bureau Data
Dog Food Versus Cat Food Purchasers
Purchasers of Dry Dog Food
Table 6-1: Demographic Characteristics Strongly Favoring Purchase of Dry Dog Food, 1998
Table 6-2: Consumer Overview: Purchasers of Dry Dog Food, 1998 Purchasers of Canned Dog Food
Table 6-3: Demographic Characteristics Strongly Favoring Purchase of Canned Dog Food, 1998
Table 6-4: Consumer Overview: Purchasers of Canned Dog Food, 1998 Purchasers of Dog Snacks and Treats
Table 6-5: Demographic Characteristics Strongly Favoring Purchase of Dog Snacks and Treats, 1998
Purchasers of Semi-Moist Dog Food
Table 6-6: Demographic Characteristics Strongly Favoring Purchase of Semi-Moist Dog Food, 1998
Purchasers of Dry Cat Food
Table 6-7: Demographic Characteristics Strongly Favoring Purchase of Dry Cat Food, 1998
Table 6-8: Consumer Overview: Purchasers of Dry Cat Food, 1998
Purchasers of Canned Cat Food
Table 6-9: Demographic Characteristics Strongly Favoring Purchase of Canned Cat Food, 1998
Table 6-10: Consumer Overview: Purchasers of Canned Cat Food, 1998 Purchasers of Cat Snacks and Treats
Table 6-11: Demographic Characteristics Strongly Favoring Purchase of Cat Snacks and Treats, 1998
Purchasers of Semi-Moist Cat Food
Table 6-12: Demographic Characteristics Strongly Favoring Purchase of Semi-Moist Cat Food, 1998

Appendix I: Examples Of Consumer And Trade Advertising And Promotions
Appendix II: Addresses Of Selected Marketers