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3/2017
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Versele-Laga is a well-known international manufacturer of high-grade branded food and care products for working animals and pets. The small animal segment in particular is a major focus for the Belgian pet food manufacturer, because scarcely any other supplier offers products for ten different types of small animal. Stefan Versele, sales manager at Versele-Laga, spoke to PET worldwide about growth, trends and innovations in the small animal segment.
One often hears of static or even declining numbers in the small animals segment. How did sales of products for small animals develop in 2016 at Versele-Laga?
Sales of Versele-Laga small animal products did go up by almost ten per cent, really everything. The premium products account for 67 per cent of the small animal feed turnover and the premium products are strongly on the increase. From 2012 to 2016, premium products grew by 40 per cent.
Research through our trade marketing department showed us that our pet shops recorded a sales increase of almost 20 per cent because of a drive to premium. This is very good for the shops, because not only do they have the sales increase but also a "double-up" margin increase, because this premium drive gives them relatively more margin. Thus their margin increased up to 30 per cent.
Research through our trade marketing department showed us that our pet shops recorded a sales increase of almost 20 per cent because of a drive to premium. This is very good for the shops, because not only do they have the sales increase but also a "double-up" margin increase, because this premium drive gives them relatively more margin. Thus their margin increased up to 30 per cent.
Versele-Laga has been present in the small animal segment for a long time; it has been producing products for small animals since the 1970s. What developments and trends can be observed in this segment?
Up until 2014 (even 2015) we observed a decrease in the number of small animals. The number of small animals decreased from 30.6 mio in 2010 to 29.3 mio in 2014. Now it is confirmed that this situation has stabilised.
Versele-Laga thinks that the small animal market is mainly a speciality market. The category developed positively in this speciality part of the market. It's an important category. Where dogs (45 per cent) and cats (18 per cent) are the two major feed categories, small animals come 3rd with 6.8 per cent (closely followed by some other categories). The category is really premiumising; as in our average society, consumers are becoming better informed, because the correct food is important. The trend towards more functional/health beneficial products and enriched products has to be important.
Versele-Laga thinks that the small animal market is mainly a speciality market. The category developed positively in this speciality part of the market. It's an important category. Where dogs (45 per cent) and cats (18 per cent) are the two major feed categories, small animals come 3rd with 6.8 per cent (closely followed by some other categories). The category is really premiumising; as in our average society, consumers are becoming better informed, because the correct food is important. The trend towards more functional/health beneficial products and enriched products has to be important.
Do trends vary between individual countries in the small animal segment?
Yes and no: as in other categories you can see tendencies in all markets towards grain-free and more fibre or/and more animal…
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