(Published in July 2006)

Food For Thought
Retailers can increase sales of specialty dog foods by stocking wisely.
By Scott and Ann Springer

Before dogs ruled the roost in homes dog foods were made by a small variety of manufacturers and sat on store shelves next to livestock feed for cows, chickens, and other farm animals.

But as dogs slowly crept indoors and into owners’ hearts their foods have become more specialized.

"Back then there certainly wasn’t the variety there is today," says Jessica Smith the assistant manager of the retail store Blue Seal, in Windham, Maine. "The market has gotten more specific to fit a dog with a food that is the right size, age, medical condition, color, and breed for the dog."

Specialty Products Abound
"A dozen years ago there was chicken, and some beef around, and lamb was coming around," says Alan Gardner, the owner of PetStop, a retail shop in Bellingham, Wash. "Now there is salmon and other fish, venison, duck, and an assortment of sources of protein."

Grains have also become more varied with manufacturers using white potatoes, sweet potatoes, rice, and more exotic complex carbohydrates like quinoa, Gardner says.

In addition to changes in grains and protein bases to foods, in more recent years, foods have become more health-oriented too.

"In the last five years, dog foods have really boomed," Smith says. "Iams and Nutro have really been leading the pack with the large breed, weight management, and senior foods."

Royal Canin, a St. Charles, Mo.-based manufacturer, has formulated diets based on unique risks that can be addressed by nutrition, says Ann Hudson, the company’s director of marketing.

For example, small breeds like French bulldogs may be susceptible to dental health issues, while long hair dogs may need more skin and coat attention, Hudson says.

Breed-specific diets have seen phenomenal growth, Hudson says. "Many pure-breeds, like the German Shepherd, have recognizable needs apart from the general canine population and can benefit from specially formulated diets," Hudson says.

Customers are also seeking out natural products with high-grade ingredients, says Misty Schneider, the manager of Pet Kingdom…Where Pets Rule, a retailer in Algona, Iowa.

"The overall health of the dog, which is most important, starts with proper nutrition," Schneider says.

Glenn Gorham has also cashed-in on the trend towards all-natural products. "It’s been a growth category," Gorham says.

Gorham is the owner of Canz, a Santa Monica, Calif., manufacturer of an all-meat, pasteurized diet for dogs that can be frozen until served.

These products have been selling well nationally, according to Gorham, who says pet stores are installing freezers to accommodate these products.

Converting Customers
Usually customers buy a brand and stick with it for the life of the dog until a problem arises. That is when you, the retailer, step into the picture. They seek you out for advice on how to remedy their dogs’ issue.

"If the dog seems to be gaining weight or the dog has developed a food allergy they will come in and look for a different food to switch to," Schneider says.

Solving a food dilemma for a dog can take as little as 45 seconds for Gardner.

First, he observes the dogs’ head, coat, and tail. If he observes hot spots, flaking, scratching, itching or chewing he suggests changing the grain in the food.

"It’s almost always corn," Gardner says. "Taking corn out of the diet can be an easy fix for scratching and other skin issues."

Then he looks at the underside of the dog for redness, blistering or warmth. "In that case, it’s almost always too much protein," Gardner says. "People see high-protein on the bag and they think it’s a good idea, that’s its healthy, but it’s not always."

However, if the customer reports a sudden change, or a strong odor on the dog, Gardner recommends that the customer goes to their veterinarian.

"It’s likely not a nutritional problem," Gardner says. "People want a nutritional fix for everything that is wrong with their dog."

Sales
With so many products on the market, it may be hard for a retailer to decipher which foods to stock their shelves with. "It can be overwhelming," Gardner admits.

Gardner stocks 26 brands of food and an endless number of formulas and flavors of each of those brands. His philosophy is that retailers should try to match the food to the dog and not the dog to the food.

"Foods are the engine that drives the train," Gardner says. "We do our best to listen to the customer to find out what has worked in the past, narrow it down, and then give them three or four good choices."

Review ingredient labels periodically, especially if a brand is bought by another manufacturer, to make sure the ingredients are still high-quality, Gardner recommends.

"Foods tend to have about a five- or six-year lifecycle and then they make changes to their line up of ingredients," Gardner says.

As brands fall out of favor, carefully look at new brands to acquire. When I pick a new food I say, ‘What does this bring to the party?’" Gardner says. "I don’t need six chicken and rice formulas. We try not to duplicate anything."

Just as the ingredients vary for dogs so do the prices of the foods. "There are always the people who want the 50 pound bag of food for $7," Schneider says. "But a lot of people want the best quality food at whatever the cost."

The majority of customers fall into the middle of those two extremes. "They want what is good for their dog, but they can’t afford the best," Smith says.

Price is a concern for frozen, all-meat diets, too. "The pricing is deceptive because it takes 6 cans to equal one half of our rolls," Gorham says. "It’s actually cheaper than buying canned food and you don’t have buy vitamins and supplements either."

Spending a few minutes educating the customer about the pros and cons of different foods on the market can translate into higher sales.

"I can usually offer them a better food than what they are feeding their dog now at the same price or better," Smith says.

Direct marketing of educational materials, without a coupon incentive, to owners of specific breeds has achieved double-digit sales growth, Hudson says.

"A well-educated consumer responds less to a monetary incentive than to information about a diet that is formulated specifically for their dog," Hudson says. "The owners of today don't compromise on nutrition to save a buck."

Education for Recommendations
There is a flood of information – both good and bad – and it can be taxing to know what information to pass on to your customers.

Many manufacturers offer educational programs that retailers can utilize as part of their employee education program.

"Our retailer training program has evolved from a product-oriented to a nutrition-oriented program," Hudson says. "We are helping to develop retail associates who can help their customers find the best food for their pet."

Look at the ingredient lists and then use websites, like http://www.affco.org, which is hosted by The Association of American Feed Control Officials, Inc. This website lists definitions of common ingredients in dog foods so you can understand what compromises the contents of the bags on your shelf, Smith says.

Another website, http://www.whole-dog-journal.com, which is funded solely by subscriptions, offers suggestions for care and feeding of dogs, Smith says.

"If you can find good independent sources, they seem to have pretty good and unbiased view point, because they’re out there to educate people," Smith says.