This article was published in the July 2024 issue of Pet Food Processing. Read it and other articles from this issue in our July digital edition.  

The US animal food industry remains a robust player on the global stage, backed by strategic initiatives and proactive measures to ensure its continued success and resilience. In 2023, this industry exported a remarkable $13.4 billion in feed, feed ingredients and pet food, equating to 19.8 million metric tons in total volume. Pet food alone accounted for $2.4 billion of these exports. 

The industry’s strength is bolstered by its commitment to quality, safety and innovation, which drives its competitive edge in international markets. US pet food manufacturers prioritize high standards in sourcing ingredients, maintaining stringent production processes, and adhering to regulatory requirements. Furthermore, strategic partnerships and trade agreements play a pivotal role in expanding market access and facilitating smoother trade flows. 

The American Feed Industry Association (AFIA), which represents the total animal feed and pet food industry, is engaged in several initiatives this year aimed at expanding market access abroad for US pet food exporters and ensuring a stable supply chain for the future.

Market Access Programs 

Under the US Department of Agriculture’s (USDA) Market Access Program (MAP), the AFIA has been working to expand US pet food exports, with targeted efforts in Vietnam. Leveraging MAP resources, the AFIA is collaborating with the Vietnamese Small Animal Veterinary Association (VSAVA) to support veterinary clinics in Vietnam, increasing awareness among dog and cat owners about the critical roles veterinarians and proper animal nutrition play in ensuring the wellbeing and longevity of pets.

Later this year, the AFIA and VSAVA will launch a “Pet Health Month” program uniquely targeting veterinarians, veterinary students and pet owners, when the associations will emphasize the importance of nutritious and complete pet foods in a market where many pets are still primarily fed table scraps. This initiative will be a groundbreaking effort in Vietnam, highlighting the essential connection between improved diets and pet health.

“Expanding Vietnamese pet food production can make pet food more affordable and available to Vietnamese pet owners,” wrote Gina Tumbarello of the American Feed Industry Association.

Recognizing that pet food is considered a luxury good and quite costly for many Vietnamese pet owners, the AFIA has also secured additional USDA funding through the Emerging Markets Program (EMP) to assess how US pet food ingredient manufacturers and suppliers might tap into the Vietnamese pet food market and support the expansion of its domestic pet food production. Expanding Vietnamese pet food production can make pet food more affordable and available to Vietnamese pet owners. This approach, combined with efforts to promote pet nutrition, health and the benefits of complete pet diets, could support a significant increase in the overall demand for pet food in Vietnam. 

The US animal food industry utilizes MAP and EMP funding, which, once again, is being debated under the Farm Bill this year. These programs have not seen funding increases since 2006, yet are instrumental in promoting animal food exports, particularly in key markets like Vietnam and China, especially since no new trade agreements are currently being discussed. A key policy priority for the AFIA is increasing funding for the MAP and EMP programs, as well as other market development programs, under the Farm Bill to promote the continued expansion of US agricultural exports, including pet food, particularly in emerging markets like Vietnam.

Supply chain resiliency

Recognizing the importance of securing vital inputs for feed and pet food production, such as vitamins and amino acids, the AFIA has been proactively working with the federal government to address potential supply chain vulnerabilities. 

“An estimated 78% of total vitamin imports to the United States are from China, creating an overwhelming dependency on this single country for its vitamin needs,” wrote Gina Tumbarello of the American Feed Industry Association.

As an example, an estimated 78% of total vitamin imports to the United States are from China, creating an overwhelming dependency on this single country for its vitamin needs, a concern underscored by the lack of feasible alternative sources for these essential nutrients. Where alternative suppliers exist, they simply cannot match China’s vast production capabilities or scale. China holds a commanding position in global vitamin production, reportedly exclusively manufacturing key vitamins such as thiamine, niacin, biotin, inositol, salicylic acid, cobalamin, cholecalciferol and K. This dependency poses significant risks, as demonstrated by the recent trends in the amino acids market, which follow a similar pattern to what has been observed with vitamins. According to some analyses, the US dependency on Chinese production now accounts for over 62% of the global capacity for amino acids, including 76% for lysine and 91% for threonine.

It goes without saying that pets need vitamins to support their wellbeing. Thiamine (B1) regulates energy and carbohydrate metabolism, while vitamin D facilitates the balance of minerals, like phosphorus and calcium, for robust bone growth, essential for maintaining strong muscles and bones. Vitamin E acts as an antioxidant, protecting cells from oxidative damage, further promoting pet health and vitality. 

In addition, pets require amino acids in their diets to maintain healthy and active lifestyles. There are more than 20 amino acids necessary for pets, with 10 deemed “essential,” meaning they must be provided through the diet, since pets cannot produce them internally. It is crucial that pets consume amino acids in the correct amounts daily to support immune function, brain function, metabolism regulation, stamina and weight maintenance. 

Should a shortage of vitamins and amino acids occur, reformulating pet food diets is not a viable solution due to regulatory requirements that mandate pet food must provide complete and balanced nutrition. The Association of American Feed Control Officials (AAFCO) establishes nutrient profiles that set the minimum and sometimes maximum levels of vitamins and other nutrients necessary for pet foods to be labeled as “complete and balanced.” These profiles are based on scientific research and are designed to meet the dietary needs of pets at different life stages. Also, the Food and Drug Association requires that any pet food claiming to be “complete and balanced” meet AAFCO nutrient profiles.

While this is just one example of a potential supply chain challenge, there may be other instances where overwhelming reliance on a single supplier or a limited number of suppliers for vital inputs could create a precarious situation should geopolitical tensions, trade disputes, natural disasters or other unforeseen events in the supplier country occur. Diversifying supply sources is crucial to mitigating these risks, ensuring a more stable and resilient supply chain. Without feasible alternatives, the animal food industry could become susceptible to fluctuations in supply and pricing, potentially jeopardizing pet health, livestock and poultry health and production, and food security for our nation. 

These points underscore the need for strategic planning and investment in diversifying supply chains to enhance sustainability and reduce dependence on any single supplier. To ensure the resilience of both the US animal food and farm sectors, the AFIA is urging US policymakers to adopt a multi-faceted approach, balancing economic interests with broader strategic considerations to diversify and secure our vitamin and amino acid supply chains. 

Looking ahead

As the US pet food industry continues to flourish on the global stage, it faces myriad challenges and dependencies that require careful navigation and proactive solutions. Industry stakeholders are actively engaged in promoting US animal food exports and expanding market opportunities. 

The AFIA is committed to enhancing supply chain resilience and advocating for strategic initiatives geared toward improving pet nutrition and fortifying supply chain resiliency against potential shocks. By fostering partnerships around the world, embracing innovation and actively participating in policy and regulatory discussions, the AFIA and its counterparts are laying the groundwork for a resilient and thriving US pet food industry.

Find more articles related to pet food export opportunities and trade.

VEVEY, SWITZERLAND — Investment, productivity savings and incrementality are central to Laurent Freixe’s priorities as he steps into the role as the new chief executive officer of Nestlé SA.

“To ensure our success, we will embrace the strategic virtuous circle as our compass with a focus on productivity, cost management, allowing strategic investments in our key brands and key innovations,” Freixe said during an Aug. 23 conference call with securities analysts to discuss the change in company leadership. “We will be laser focused on execution, starting with quality, safety, simplicity, speed and agility. This is pivotal to our success going forward.”

The company announced Freixe’s elevation to CEO on Aug. 23. He took replaced Ulf Mark Schneider, who left the company. Freixe was executive vice president and CEO of Latin America. He became CEO on Sept. 1 and is expected to be nominated to Nestlé’s board of directors at the company’s 2025 Annual General Meeting in April.

From a macro perspective, Freixe said his focus will be on organic growth and market share gains to drive organic growth.

“That requires investments in the brands, that requires investments in growth platforms,” he said. “And the objective — my objective is to create space with the management team to allow for those investments. I’ve always made the case that innovation, for instance, has to be incremental. Incremental innovation requires incremental funding.”

To illustrate his point, Freixe used Nestlé’s Nescafe Dolce Gusto coffee-making machines and accessories as an example.

“If we would have taken resources from Nescafe to grow Nescafe Dolce Gusto, for instance, we might have done a good job on Nescafe Dolce Gusto, but we would have done a poor job on Nescafe,” he said. “… We want to work that line going forward to keep supporting Nescafe, one of our best brands, while putting incremental resources behind Nescafe Dolce Gusto.

“To do this … we will need to be very strong on productivity, cost efficiencies to create the space again and generate the funds and the resources to invest incrementally behind the brands and the growth platforms. It’s through investment behind the brands, through quality and execution, of course, that we will achieve that.”

Analysts on the call asked Freixe if he has any plans to subtract from or add to Nestlé’s portfolio of brands and businesses.

“… The focus will be on driving the current portfolio, primarily organic growth is of the essence,” he said. “On the portfolio, there might be, of course, adjustment. But again, (the) top priority is absolutely organic growth and M&A is there to complement the strategy to strengthen our portfolio where it can be (but) is not the core of the strategy.”

Reducing the complexity of Nestlé also will be a priority for Freixe.

“…You know the work we have done on SKUs (stock-keeping units), for instance, lately, but we are doing the same type of exercise on the brands and the innovations and the growth platforms,” he said. “(We’re) just trying to clarify where are the big bets, where are the big priorities, and make sure that those we resource with everything we can and we should to make them thrive and win. Not everything is equal in the portfolio. So, we want to make sure that we resource and support the best possible way the core.”

ARLINGTON, VA. — The American Feed Industry Association (AFIA) released its annual “Our Industry, Our Promise” report on Aug. 26, detailing its continued support of the animal nutrition industry, as well as the industry’s economic impact.

According to the association, in 2023, there were approximately 5,650 US animal food manufacturers, including pet food processors. The industry generated an estimated $267.1 billion in total sales, as well as $98.4 billion in value-added contributions, and $18.5 billion in local, state and national taxes. Overall, the industry directly paid $6.9 billion in wages to more than 80,3000 employees in 2023. 

Regarding its role in the industry, the AFIA highlighted its major focuses, including ensuring safety, modernizing regulatory practices, developing a more resilient supply chain, promoting global competitiveness and advancing sustainability. 

During the past year, the association advocated for the Innovative Feed Enhancement and Economic Development (Innovative FEED) Act.

“Modernizing the regulatory process for new animal food ingredients is essential for innovation,” wrote Constance Cullman, president and chief executive officer of the AFIA, in the report. “This past year, the AFIA successfully advocated for the introduction of the Innovative FEED Act in Congress and encouraged the Food and Drug Administration to rescind its outdated policy guide that wrongly regulates some animal feed ingredients as drugs versus feed additives. Both efforts will help the United States regain its competitive edge in animal production.”

Addressing supply chain challenges also continues to be a focus for the association. The AFIA continues to raise awareness of the imperative need for the US to diversify input supplies and markets. In the pet food industry specifically, the association is working to address the United States’ dependency on Chinese production of essential vitamins, as about 78% of total vitamin imports to the United States are from China, according to the AFIA. 

“Recognizing the need for resiliency, the AFIA formed a task force to develop strategies for reducing risks in our supply chain and launched initiatives to expand industry’s presence in new markets,” Cullman wrote. “Through member visits to Congress and representation on Cabinet-level task forces, the AFIA is raising awareness of the need to diversify input supplies and markets for US food and animal food security.”

Enhancing exportation

Among its many initiatives to support the industry, the AFIA continues to promote US products in international markets in hopes of strengthening the industry’s global competitiveness. According to the association, from 2022 to 2023 the value of US animal food exports rose 79% to $13.4 billion, and export volume increased 120% to 19.8 million tonnes. The industry’s top export destinations continue to be Canada, Mexico, China, Japan and South Korea. Pet food was the industry’s second top export, generating $2.4 billion in value and second only to corn coproducts, which generated $4 billion. 

Looking toward the future of US animal food exports, the AFIA will continue to focus on Brazil and Vietnam. In Brazil, the AFIA recently completed an assessment on the country, examining opportunities for the overall animal food industry.

According to the US Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS), Vietnam’s pet population continues to rise. During the past five years the dog and cat populations have risen 30% and 20% respectively. To help promote US pet food products in Vietnam, the AFIA recently partnered with the Vietnamese Small Veterinary Association to promote pet parent education on the importance of complete-and-balanced pet foods. 

Seeking sustainability

Additionally, the AFIA is also working toward helping the industry become more sustainable. According to the association, more than 40% of ingredients used in animal feed are coproducts from other industries. This means that about 113.6 million tons of materials are diverted from landfills annually, avoiding about 61.3 million tonnes of carbon dioxide and 7.4 million tonnes of methane emissions. 

To continue this, the AFIA launched many new sustainability policies in 2023 aimed at promoting global collaboration and partnerships with industry stakeholders, governments and non-governmental organizations to address challenges in reducing environmental impact. 

“Whether it is called conservation, sustainability, regenerative agriculture or smart resource use, the need to do more with less is part of our industry’s culture and future,” Cullman wrote. “The AFIA’s work on sustainability continues to gain momentum with the development of policy priorities that emphasize animal nutrition in environmental solutions, while balancing food security needs. The association is leading efforts to shape sustainability agendas and dialogues at international fora on climate change and through international standard-setting, all while supporting members on their sustainability journeys.”

Additionally, the association’s Institute for Feed Education and Research (IFEEDER) launched its Animal Food Industry Sustainability Toolkit in early 2023 to help industry members with their environmental journeys. IFEEDER intends to expand the resource, adding additional information and resources. 

“We owe the AFIA members and staff a debt of gratitude for their dedication to our industry and for encouraging us to continue improving and innovating,” wrote Carlos Gonzalez, Ph.D.,

vice president of Global Regulatory Affairs at Hill’s Pet Nutrition and AFIA’s Board Chair. “Our future is bright, and it will be brighter with your participation.”

Read more news from associations and agencies in the pet food sector. 

JEROME, IDAHO — Milk protein supplier and dairy processor Idaho Milk Products revealed it plans to enter the ice cream market as part of “a significant broadening of its business,” highlighted by a new $200 million dual ice cream and powder blending facility. 

Construction on the 183,000-square-foot plant is scheduled to begin within two months and the company anticipates it will be operating at full commercial production by May 2026.

Idaho Milk Products shared that its strategy for ice cream will focus on premium indulgent and functional recipes, not only in bulk, but also in novelty formats.

Additionally, the company said its blending capabilities will support its ice cream business “and create capabilities to provide custom formulations to both existing and new customers.”

The leadership team at the Jerome, Idaho-based company said the new facility is “a natural extension of its existing model and has the potential to create one of the world’s most sustainable ice cream businesses.”

Chief executive officer Daragh Maccabee noted that Idaho Milk Products also remains committed to its core business of producing milk protein concentrates and isolates.

“At the same time, we constantly seek out new ways to add value to our milk, always doing so in a way that is sustainable for the longer term,” Maccabee said. “Our vision for this plant is to build on the strength of our existing business, leverage our Milk Innovation Center, the strength of our R&D team and the unique synergies that this business will create.”

Kevin Quinn, vice president of sales and marketing at Idaho Milk Products, said the commercial strategy involves adding incremental value to the company’s fresh, high-quality cream.

“The inclusion of a blending facility in the new plant creates new ways to service our customers and add to the benefits of our vertically integrated model,” Quinn said.

MINNEAPOLIS — Though improved performance in discretionary categories headlined the second quarter, Target Corp. sees plenty of runway for its burgeoning food and beverage business, said Brian Cornell, chairman and chief executive officer.

“We think we have significant opportunity for growth in that space, led by the unique combination of great national-brand partnerships and some really strong owned brands that are connected with the consumer,” Cornell said in an Aug. 21 analyst call on fiscal 2024 second-quarter results. “So we think we’re still in the early days of building out our food business.”

Target’s food and beverage sales have increased nearly $9 billion over the past four years to become a $24 billion business. Food and beverages represented about 23%, or $23.90 billion, of Target’s fiscal 2023 sales of $105.8 billion, up from 21% ($22.92 billion) in 2022, 20% ($20.3 billion) in 2021, 20% in 2020 ($18.14 billion) and 19% ($15.04 billion) in 2019.

Food trips spur traffic

Low-single-digit comparable sales growth in food and beverages during the second quarter contributed to an overall comp-sales uptick of 2%, which marked Target’s first such gain in over a year. Cornell said the category benefited from a plan Target announced in May to lower the everyday prices on thousands of popular products.

“On the frequency side of our assortment, both our food and beverage and essential categories saw traffic growth in the quarter, as consumers are responding to our offerings in an environment where they are focused on value,” he said. “Over the summer, we reduced our prices on about 5,000 frequently purchased items in many markets, and we saw an acceleration in both our unit and dollar sales trends in these businesses.”

Because of their purchase frequency, food and beverages have been a big contributor to traffic. Target’s traffic rose 3% overall in the second quarter, and during the call Cornell singled out traffic growth as the chief factor behind the comp-sales increase.

“While it was fantastic to see top-line growth in the second quarter, it was even more gratifying that was driven by traffic, as more guests choose to make more trips to Target, following unprecedented growth during the pandemic,” he said. “Altogether, over the first six months of 2024, our guests have already made nearly 1 billion trips to Target, a number that’s grown by more than 20% since 2019.”

Assortment expansion

Target’s seasonal merchandising has provided a key growth vehicle for food and beverages, and that was no different in the second quarter, said Rick Gomez, chief commercial officer. In early July, Gomez was promoted to that role after serving as chief food and beverage officer since February 2021. Lisa Roath, currently chief marketing officer, is slated to become chief merchandising officer for food, essentials and beauty in early 2025.

“In food, comp sales growth in the low single digits was led by seasonal moments, with hundreds of new items across snacking, grilling and entertaining,” Gomez said in the second-quarter call. “With exclusive-to-Target items like Bubly’s Melted Ice Pop flavor (sparkling water), which quickly grew to be the highest-selling item in its category, we help guests celebrate summer with fun, new flavors and items.

“We’ve also pushed ourselves to rethink assortment strategies that have been tried and true for years. For example, we transitioned our candy aisles, leading into some of the most popular trends like better-for-you options, including lower-sugar treats and wellness candies. While this category is already growing, these changes raise the bar, accelerating comp growth into the double digits.”

Formula based on affordability, differentiation, convenience

Responding to an analyst’s question, Gomez sketched out the growth picture for Target’s food and beverage business.

“We believe there is continued runway for the business to deliver growth, driven by a few things,” he said. “The first is continued emphasis on affordability. As we talked about, the 5,000 price reductions across everyday items was incredibly well-received. We’ll continue to lean into value on food and beverage, not just through everyday pricing but also through personalized promotions on Circle (Target’s loyalty program), as well as with our own-brand portfolio, which offers incredible value. The second thing that we’ll continue to lean in to drive growth for food and beverage will be newness. Just going into the fall season, right now we have a ton of new products coming, over 150 new own-brand products and over 500 new national-brand products, leveraging those flavors that everybody loves for the fall. I’m talking about pumpkin spice, apple, pecan pie. That will continue to fuel growth.”

The fall food assortment will span “sweet to savory” flavors, Gomez said, with new private label and national brand offerings ranging from pumpkin donut holes and jack-o-lantern sandwich cookies to pecan pie ice cream and turkey stuffing-flavored potato chips from Target’s Good & Gather brand. Launched by Target in 2019, Good & Gather — now covering nearly every food and beverage category — took less than a year to top $1 billion in sales and currently is on its way to $4 billion. Target followed up in 2021 with indulgent brand Favorite Day, designed to offer premium flavor at affordable prices.

Strong digital traction also has lifted the food business, Gomez said. Digitally originated sales account for over 18% of Target’s sales by channel, and in the second quarter the retailer tallied double-digit growth in Drive Up curbside pickup and same-day delivery via the Target Circle 360 online membership program.

“The last opportunity to continue to drive growth in our food and beverage business is around ease and convenience,” Gomez said. “Consumers have a lot on their plate, and they’re looking for simple solutions. We’re very excited about the continued growth that we’re seeing on both Drive Up as well as same-day delivery, which achieved double-digit growth in Q2, and we continue to see runway on that going forward.”

WASHINGTON — Career paths aren’t always clear and certain — no one knows this better than Dana Brooks. A career that began with a focus on agriculture led her to a role in which she could channel her passion for pets with her desire to advocate and support the industry. As the president and chief executive officer of the Pet Food Institute (PFI), Brooks gets to spearhead the organization’s mission to provide valuable information about pet food and treat safety and nutrition to pet lovers, while advocating for the needs of those who make the food to feed the pets we love.

“PFI’s mission is personal to me and is my ‘why,’” she said. “We are committed to helping dogs and cats live long and healthy lives.”

In the following Q&A, Brooks shares how her desire to communicate important and valuable information to pet lovers is guiding her work as the leader of PFI, and offers valuable advice to other women in the industry.

PFP: How did you get your start in the pet industry, and how did that experience lead you to where you are now?

Brooks: Nearly all of my career has been focused on the agricultural industry, whether as a grain inspector, merchandizer, advocate or policy drafter. In 1996, I lost my dad in a fatal farm accident. That was truly a tipping point in my life. I moved to Washington, DC, in 2000 to be a legislative assistant focused on farm policy for a member of Congress from my home state. I wanted to do everything I could to support US farmers, ranchers and growers.  

“I witnessed the unconditional love and importance of the human-animal bond during my mother’s extreme grief,” said Dana Brooks, PFI.

After my dad passed away, my mother’s companion became a chihuahua. I witnessed the unconditional love and importance of the human-animal bond during my mother’s extreme grief. Therefore, PFI’s mission is personal to me and is my “why” — we are committed to helping dogs and cats live long and healthy lives. And as the voice of US pet food makers, we provide factual information about pet food safety and nutrition to pet lovers, and advocate for a transparent, science-based regulatory environment for our members.   

PFP: What has been your biggest challenge — personal or professional — related to your work in the pet industry?

Brooks: The biggest challenge for all of us is how quickly misinformation can spread on social media. Even after the correct information has been disseminated and generally accepted, an old or resolved issue can resurface, giving life back to the misinformation. Social media acts like the directions on a shampoo bottle — wash, rinse and repeat. The fact that our space is highly emotive, and more than two-thirds of every US household has a pet, makes it exceedingly difficult to get ahead of social media reporting and reposting.  

In July, PFI made the strategic decision to shift some of our website content from a manufacturing focus to a greater focus on consumer information. We want to provide fact-based information on pet food safety and nutritional needs for dogs and cats, hoping to be the guiding resource that is at the top of pet enthusiasts’ Google searches.  

PFP: Tell me about a professional accomplishment in the pet industry that you are proud of.

Brooks: I am immensely proud of the high-quality and professional team we have at PFI. We are more initiative-taking than reactive than ever before in the history of the Pet Food Institute.  

One example of action that PFI is leading is the Petfood Uniform Regulatory Reform Act or the PURR Act, which was introduced in the US Congress this year. This campaign to modernize the regulatory framework is one of the most consequential undertaken by PFI in its 65-year history. We must modernize the system to ensure it provides uniformity and transparency for people, pets and pet food makers. The current patchwork of regulations results in inconsistent interpretations of ingredients, label reviews and claims from state to state.  

We are looking toward the future of the industry for pet food makers that will benefit pet owners, as well.  

PFP: What is top of mind for you and/or your business in the industry right now?

Brooks: PFI’s top priorities fall into three buckets that support the best food safety, nutrition and market access measures for pet food makers and the pets we serve.  

I have already mentioned the PURR Act as one of the biggest legislative campaigns we have ever proactively led at PFI. Additionally, we have dedicated staff who act as the liaison between member companies, US officials and international governments to improve domestic and international market access. We also advocate and engage when state legislative and regulatory actions add unnecessary costs, such as taxes or fees or restrictions on packaging and ingredients.  

PFP: If you could pick some trends influencing the industry today, which are the most important and why?

Brooks: One trend that is most concerning is that some pet owners believe homemade pet food — whether raw or cooked — is better or safer for their pets than buying complete-and-balanced pet food. We have been told by veterinarians that they are seeing more pets deficient in essential vitamins and minerals causing serious health implications due to home-cooked diets.  

In addition, more and more Americans are concerned about climate change and prioritize product sustainability in their purchasing decisions. To appeal to consumers, pet food makers will need to focus on sustainability in their operations, increase the recyclability of packaging, and use innovative ingredients that require fewer natural resources to produce.  

PFP: What is something about the pet industry that people outside of the industry may not realize?

Brooks: We are pet owners and dog and cat lovers. We care about our pets, our extended family’s pets, and our friends’ pets. We take our job to create complete-and-balanced nutrition seriously and know how important it is to provide dogs and cats with the best nutrition and safest food that they require and prefer within our own price point.  

PFP: What advice would you give to other women in this industry?

Brooks: Know your “why” and strive to work in jobs or have a career that inspires you to give the best of yourself every day. Do not be discouraged when you think you are following your dreams only to discover that it does not fill you with purpose or passion. Those experiences may be part of the journey that leads you to fulfillment. Do not be afraid to take a leap of faith or try something different. And, never stop feeding your mind, body and soul well.  

PFP Just for fun, do you consider yourself a dog person or a cat person? Or, if you have pets of your own, tell us a little bit about them.

Brooks: I am a dog person, but I am not cat adverse. However, I prefer the energy and personality of an active dog. I am a bit hyper and easily excitable myself, so I enjoy being able to run, walk, paddle board, play ball and be goofy with our family rescue dog, Camille. Camille is a pocket or petite German Shorthair Pointer (GPS) mostly. She is ball-obsessed and loves to run on the beach, swim in the bay, chase squirrels and hunt lizards. We adopted her during COVID-19 when we were working from home. Fortunately, she gets to go to work with my stepdaughter almost every day now at the scuba diving store. She is very well-behaved in a social setting and loves to go to the brewery with my husband, where everybody knows her name.

In her current role as president and chief executive officer of Pet Food Institute, Dana Brooks leads the institute in its mission to advocate for legislation and regulation that supports pet food production, promote pet food safety innovation in manufacturing, and deliver information about issues impacting pet food makers and their suppliers. Brooks earned her Bachelor of Science degree in agriculture from the University of Arkansas at Monticello and Master of Science degree in agribusiness and agricultural business operations from Kansas State University.

Continue reading about other female leaders featured in our Women in the Pet Industry series.

MCLEAN, VA. — In one big transaction, Mars Inc. is set to transform its candy-based snack business into a diverse portfolio anchored in grain-based baked foods through its planned acquisition of Kellanova.  

The $35.9 billion deal, announced Aug. 14, would firmly plant Mars – known primarily for candy and chocolate brands like Snickers, M&M’s, Mars, Twix, Dove, Milky Way, 3 Musketeers, Skittles, Extra, Wrigley’s Doublemint, Life Savers and Starburst – in the cracker, salty snacks, bar and breakfast sections of the grocery store.

The roster for Kellanova, the snack company spun off by The Kellogg Co. less than a year ago, spans a host of popular brands, led by Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats, NutriGrain, RxBar and, in the frozen breakfast category, Eggo.

In the packaged foods sector, snacks have gained more prominence in recent years as more on-the-go consumers focus on eating smaller portions throughout the day. McLean, Va.-based Mars said the addition of Kellanova would spur its plan to double its Mars Snacking business over the next decade. That business unit already includes 15 billion-dollar brands, and Kellanova would add two more: Pringles and Cheez-It. What’s more, Mars said the deal boosts its presence in better-for-you snacks with Kellanova brands like RxBar and NutriGrain added to the portfolio.

Plans call for Kellanova to be integrated into Mars Snacking, led by global president Andrew Clarke and based in Chicago. He called the transaction “an exciting opportunity to create a broader global snacking business” that will enable “Kellanova and Mars Snacking to both achieve their full potential.”

“Kellanova and Mars share long histories of building globally recognized and beloved brands,” Clarke said. “The Kellanova brands significantly expand our snacking platform, allowing us to even more effectively meet consumer needs and drive profitable business growth. Our complementary portfolios, routes-to-market and R&D capabilities will unleash enhanced consumer-centric innovation to shape the future of responsible snacking.”

The companies expect the acquisition – which will take publicly held Kellanova private into family-owned Mars – to close in the first half of 2025, pending shareholder approval, regulatory clearance and other customary closing conditions. News of a potential purchase of Kellanova by Mars surfaced just over a week before the companies announced an agreement.

“This acquisition would be one of the largest deals ever in the packaged foods space, and one that could spark more consolidation among food companies,” CFRA Research analyst Arun Sundaram said in an Aug. 14 research note. “This is a good marriage between two high-caliber food companies, as Mars is known for its innovation and brand-building, while Kellanova has the global reach to bring more Mars products to more markets.

“We expect antitrust scrutiny, given the sheer size of the deal against the current backdrop of rising food prices,” Sundaram said. “However, we think the deal will ultimately go through, given the limited category overlap between the two companies. Mars is primarily a confectionery producer, with iconic brands like Snickers, M&M’s and Twix. It also has a very large pet business, with brands like Royal Canin and Pedigree. Kellanova predominantly competes in the salty snacks market with brands like Pringles and Cheez-It.”

The Mars-Kellanova combination

Together, Mars and Kellanova would form a global company with annual revenue of more than $63 billion and 173,000 employees. The combined business’ product categories would span snacking, food and pet care on a worldwide basis, frozen breakfast and plant-based foods in North America, and cereal and noodles internationally.

Mars, with over 150,000 employees, said it had net sales of more than $50 billion in 2023. Kellanova’s 2023 net sales topped $13 billion, and the company said it has a presence in 180 markets globally and about 23,000 employees.

Kellanova brings a “portfolio of growing global brands” that would offer a “substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future,” according to Poul Weihrauch, chief executive officer and Office of the President at Mars Inc.

“We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers,” Weihrauch said. “We have tremendous respect for the storied legacy that Kellanova has built and look forward to welcoming the Kellanova team.”

Mars’ business units include Mars Snacking, Mars Petcare and Mars Food & Nutrition. In addition to brands already mentioned, Mars’ snack offerings run from chocolate (American Heritage, Bounty, Celebrations, Ethel M, Galaxy, Hotel Chocolat, Maltesers, Trü Frü), to candy and chewing gum (Altoids, 5, Big Red, Eclipse, Juicy Fruit, Wrigley’s Spearmint and Winterfresh, Hubba Bubba, Orbit), to snack/nutrition/breakfast bars (Kind), and to baked snacks under brands like Balisto (biscuits), Combos (bite-size cracker, pretzel and tortilla stuffed snacks) and Nature’s Bakery (fig, oatmeal crumble and brownie bar snacks).

On the food side, Mars offers products in such segments as rice and grains, sauces, spreads, shelf-stable and refrigerated entrees, soups and sides, cooking aids, better-for-you items and ethnic dishes in over a dozen brands, including Ben’s Original, MasterFoods, Seeds of Change, Tasty Bite, Foodspring, Dolmio and Kevin’s Natural Foods. Mars Petcare’s product roster includes 10 brands tallying over $1 billion in sales that offers such pet food brands as Pedigree, Iams, Whiskas and Sheba.

“The acquisition of Kellanova unlocks a significant opportunity for Mars to meaningfully compete with iconic brands in the growing category of salty snacks,” said John Oh, an analyst at the investment research firm Third Bridge. “Our experts tell us Cheez-it and Pringles are the foundational growth engines for Kellanova. Now under Mars, the additional scale should bode well for these iconic brands to unlock further growth, particularly in international markets such as Europe and Latin America.”

Other Kellanova brands that would join Mars’ portfolio include Kellogg’s Club, Kellogg’s Grahams, Carr’s and Zesta (crackers); Town House (crackers, flatbread, pita snacks); Toasteds (crackers and flatbread); Austin (sandwich crackers); MorningStar Farms (plant-based foods); Pure Organic (fruit snacks); and Special K (cereal) in North America, as well as the Kellogg’s international cereal business.

Besides the $23 billion Wrigley acquisition in 2008, Mars has expanded its product portfolio in recent years with deals that added Kind Snacks’ North America business and Nature’s Bakery in 2020 and Trü Frü in 2022.

“Mars’ acquisition of Kellanova solidifies its position as a leader in the snacking industry by bringing iconic brands like Cheez-It into its portfolio, and in turn diversifying its product offerings and strengthening its market position,” said Geoff Coltman, senior vice president at Catena Solutions, a supply-chain consultancy in the food and beverage arena. “By expanding its presence in the savory snack segment, the acquisition allows Mars to cater to a wider range of consumer preferences and hit on their strategic initiative of doubling down on their snacking portfolio.”

Kellogg returns to its roots

Kellanova became a possible acquisition target in the wake of its spin-off from The Kellogg Co., according to industry observers. The move was seen as a way to unlock the potential growth of Kellogg’s snack business in line with consumer trends.

Battle Creek, Mich.-based Kellogg announced in late June 2022 that it aimed to spin off its core businesses into three separate companies, focusing on global snacking, North American cereal and plant-based foods. Then in mid-March 2023, Kellogg tweaked the plan and said it would split into two separate public companies, named Kellanova and WK Kellogg Co.

At the time, the companies said Kellanova accounted for about 85% of Kellogg’s business, with WK Kellogg representing 15%. The split was completed in early October 2023, and Kellogg shareholders received one share of WK Kellogg for every four shares of Kellogg Co. owned.

Thus far, company executives and Wall Street analysts have deemed Kellogg’s split as achieving what was intended: enabling two different businesses to perform better on their own. But with Mars’ move to acquire Kellanova, the remainder of the iconic Kellogg Co. – WK Kellogg – stands as a much smaller business with less than $3 billion in annual sales. Though focused solely on 117-year-old Kellogg’s roots as a cereal company, WK Kellogg sports a lineup of household names, including Kellogg’s, Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi and Bear Naked.

Steve Cahillane, chairman, president and CEO of Kellanova (who held the same titles at Kellogg Co.), called the Mars-Kellanova deal “a truly historic combination with a compelling cultural and strategic fit.”

“Kellanova has been on a transformation journey to become the world’s best snacking company, and this opportunity to join Mars enables us to accelerate the realization of our full potential and our vision,” Cahillane said. “The transaction maximizes shareholder value through an all-cash transaction at an attractive purchase price and creates new and exciting opportunities for our employees, customers and suppliers. We are excited for Kellanova’s next chapter as part of Mars, which will bring together both companies’ world-class talent and capabilities and our shared commitment to helping our communities thrive. With a proven track record of successfully and sustainably nurturing and growing acquired businesses, we are confident Mars is a natural home for the Kellanova brands and employees.”

Transaction closeup

Under the agreement, Mars is slated to acquire all outstanding equity of Kellanova for $83.50 per share in cash, for a total deal value of $35.9 billion, including assumed debt. The purchase encompasses all Kellanova’s brands, assets and operations, including its snacking, international cereal and noodles, and North American plant-based foods and frozen breakfast businesses. Privately held Mars said it aims to finance the transaction via cash on hand and new debt.

Kellanova’s board has approved the deal, and the WK Kellogg Foundation Trust and the Gund Family have agreed to vote shares representing 20.7% of Kellanova’s common stock in support of the transaction, Mars said, adding that Battle Creek will “remain a core location” for the combined organization.

Common shares of Kellanova hovered between $55 and $60 through the end of July and then jumped to over $75 at close on Aug. 5, when buzz of a potential acquisition by Mars hit the news. Kellanova shares finished at $80.28 on Aug. 14, the day that the deal was announced, with a 52-week range of $47.63 to $80.46. WK Kellogg’s shares closed at $16.51 on Aug. 14, with a 52-week range of $9.65 to $24.63.

The acquisition’s transaction price of $83.50 reflects a premium of 44% to Kellanova’s unaffected 30-trading day volume weighted average price and a premium of 33% to Kellanova’s unaffected 52-week high as of Aug. 2, according to Mars.

“We believe that Kellanova’s portfolio of popular snack brands will fit well with Mars’ and help them expand scale in international markets,” TD Cowen analyst Robert Moskow wrote in an Aug. 5 research note as speculation about a deal mounted. “The merger could usher in another cycle of consolidation in the packaged foods space similar to 1999-2001, thus providing a boost to valuations,” he said, citing past acquisitions such as General Mills of Pillsbury, Kraft of Nabsico, Kellogg of Keebler and Conagra of International Home Foods.

Kellanova’s $13 billion business breaks down to approximately 62% in snacks, 21% in cereal and 17% in other categories and “would be highly complementary to Mars,” Moskow noted, adding that over 25% of Kellnaova’s sales come from emerging markets and 19% from Europe. TD Cowen estimated Mars’ sales at $50 billion – about 40% from pet care, 36% from snacks and 24% from other product segments – with more than half of the company’s sales coming from international markets.

“Mars’ acquisition of Wrigley in 2008 greatly expanded its presence in snacking and expanded its scale in emerging markets,” Moskow said. “However, the acquisition more than likely failed to meet the company’s targets, given the deterioration of consumption rates in the chewing gum category in recent years.”

BOULDER, COLO. – Organic milk processor Horizon Organic and Australian-style organic Greek yogurt maker Wallaby jointly announced they earned B Corp Certification, noting the process involved verifying performance, accountability and transparency across a number of business areas.

The dairy companies – Platinum Equity acquired them from Danone SA, Paris, earlier this year – said their operations involve “doing business and doing good,” and the B Corp status builds on their core values, reinforcing “a commitment to inspiring better living through innovative dairy brands.”

Both Horizon Organic and Wallaby had previously received B Corp status under Danone North America. They will continue to carry the B Corp seal on their dairy products after reaffirming that status.

“Attaining B Corp Certification underscores our longstanding dedication to doing business responsibly and always with sustainability as our North Star,” said Tyler Holm, chief executive officer of Horizon Organic and Wallaby. “Now is the time to continue operating with people and the planet in mind and to lean into a culture of continuous improvement aimed at doing business that’s better for our employees, the environment and the communities where we live, work and operate.”

Horizon Organic and Wallaby shared that through the B Impact Assessment, they received a score of 95.5 out of 200. The digital assessment takes into account a company’s performance with regards to the environment, communities, customers, suppliers, employees and shareholders.

A company must receive a minimum verified score of 80 to achieve B Corp Certification. The companies noted that the historical medial score for businesses in 51.6 and about 40% of companies that go through the process obtain certification.

The dairy product makers said their impact commitments and programs “increase employee engagement, reduce waste, combat the threat of climate change, enhance biodiversity and create shared value within the supply chain.”

João Campos, B Lab growth manager for large and multinational companies, said the non-profit looks forward to working with the companies “as a force for good,” adding “Horizon Organic and Wallaby will remain committed to redefining success in business to ensure the consideration of the wellbeing of all stakeholders.”

TUCKER, GA. — The International Production & Processing Expo (IPPE) 2025 show has already reached 557,000 square feet of exhibit space and will bring more than 1,070 exhibitors, according to show organizers.

The show, which is six months away, brings together timely information for producers and processors and highlights the best of the poultry, egg, meat and animal feed industries.

“We are excited to interact with everyone again at the 2025 IPPE,” IPPE organizers said. “The robust exhibitor participation demonstrates our exhibitors’ enthusiasm to introducing new technologies, fostering interactions and showcasing the latest innovations in our industry.”

The show is scheduled for Jan. 28 to 30, 2025, in Atlanta at the Georgia World Congress Center. Registration for attendees will open on Oct. 7.

IPPE is a culmination of three pre-existing trade shows — the International Poultry Expo, International Feed Expo and International Meat Expo — sponsored by the US Poultry & Egg Association, the American Feed Industry Association (AFIA) and the Meat Institute (now known as the North American Meat Institute). Additionally, the AFIA will host its daylong Pet Food Conference on Jan. 28 in conjunction with the show. 

Learn more about IPPE 2025.

Read more about pet food and treat industry events.