Industry News
Del Monte will buy outperforming the fast-growing a complete portfolio of liquid and
Meow Mix dry cat food category, provides an dry digest products. GePro will be
Del Monte Foods Co. recently excellent platform from which we can responsible for the production, quality
announced that it would buy cat food leverage Del Monte’s strong US retail and delivery for the lines, while Kemin
maker Meow Mix Holdings Inc. for go-to-market platform and proven Nutrisurance will provide marketing,
US$705 million and sell its private- innovation skills to transform the sales and customer support.
label soup and baby food businesses competitive position of our pet products
to focus on its higher-margin branded portfolio. We see great opportunities Nestlé Group in 2005:
businesses. Del Monte will acquire to continue to expand the Meow Mix Record sales and profits
Meow Mix from New York-based brand equity to the premium wet cat Peter Brabeck-Letmathe, chairman
private equity firm Cypress Group. and cat snack segments. Also, with its and CEO of Nestlé SA, said that the
The acquisition adds heft to Del leading dry cat products, Meow Mix is company’s 2005 results demonstrate the
Monte’s petfood business (accounting complementary to our existing 9Lives strength of the Nestlé Model. For 2006,
for 26% of the company’s revenue in business which has a stronger wet cat he expects organic growth of between 5
2005), which could help it compete food presence.” and 6%. Nestlé Purina PetCare enjoyed
with larger companies. The company The company also annou nced 5.2% organic growth, achieving market
said the acquisition of Meow Mix, quarterly profit that beat analysts’ share gains in most categories and key
which had revenue of about US$250 estimates. Del Monte posted profit of markets in 2005. In the US, 2005 was
million in 2005, would add one US$51.9 million in the third quarter marked by incremental roll-outs of
percentage point to its gross margins. ended January 29, 2006, compared Beneful such as Healthy Coat or Healthy
Del Monte also said it expected to get with US$48.5 million a year earlier. Heart. Dog Chow, Purina’s largest
about US$23 million in tax benefits Sales rose 2% to US$878.5 million. brand, continued its success. Cat Chow
from the deal. Petfood sales rose 1.9% to US$227.3 Indoor Formula, a newly-launched
The transaction is expected to million, with profit in the unit up product, achieved sales of CHF125
improve Del Monte’s overall company 22.5% from a year earlier. For more million in its first year. Golden Products,
performance and significantly enhance information on Del Monte, see the Top the cat litter business, also performed
the competitive position of the Pet 10 article inthe January 2006 issue of well. In Europe, the strategic brands
Business specifically. This should Petfood Industry magazine. such as Bakers, Pro-Plan and ONE
increase Del Monte’s branded sales saw a good development. The strong
to approximately 85% of total net Petfood Forum Asia performance of these brands, as well as
sales. Following the close of these postponed the growth of the single-serve products,
transactions, Del Monte will have a Watt Publishing has postponed its will in the longer term have a positive
billion dollar petfood business with Petfood Forum Asia event originally effect on profitability, according to
an improved platform for innovation, scheduled for September 11-13, 2006 in company reports.
as well as greater revenue growth Bangkok, Thailand. The event will now
potential and higher overall margins. take place in 2007. The new dates will Acquisition of Breeder’s
The Meow Mix deal is expected to be announced in the near future. Choice Pet Foods
close in the first quarter of 2007, Del announced
Monte said. Kemin announces alliance Central Garden & Pet Co. (CENT)
Richard G. Wolford, Del Monte’s with GePro will reportedly buy Breeder’s Choice
chairman and CEO, said: “The Kemin Nutrisurance, Inc. Pet Foods Inc. for US$25 million.
acquisition of Meow Mix will announces that it has entered into a Breeder’s Choice has been family-immediately strengthen dry petfood, strategic alliance with GePro Poultry owned since 1947, and makes all-one of Del Monte’s largest growth Protein GmbH & Co. KG for the natural dog and cat foods under the
businesses and improve the competitive manufacture and marketing of petfood brands AvoDerm, Pinnacle, Active
position of our pet products portfolio. palatants. Under this alliance, effective Care and Advanced Pet Diets.
Meow Mix is one of the most powerful January 1, 2006, the Trigarol® and “ T he acqu isition of Breeder’s
brands in the petfood industry. This Palasurance™ lines will be brought Choice complements our animal
strong brand equity, which has been together to provide customers with health and nutrition strategy,” said
