P&G sells the majority of its pet food business

The US consumer goods group Procter & Gamble (P&G) is divesting itself of the majority of its pet food business. The Mars Group is acquiring the brands Iams, Eukanuba and Natura for $ 2.9 bn in cash. The sale covers 80 per cent of P&G’s pet food division, including the North American market, where P&G reportedly has a market share of nearly 5 per cent. Excluded from the deal is the European market, and P&G has said it will seek alternatives here. In the last fiscal year, the company suffered a decline in sales in the USA due to product recalls and fierce competition. Industry experts consider P&G’s market position in up-and-coming markets in Asia and Latin America to be rather weak. With the acquisition of P&G’s brands, the US-based Mars consumer goods group will increase its global market share in pet food to approx. 28 per cent, pushing its rival Nestlé Purina clearly into second place.