Mars acquires P&G petfood business in Australia, New Zealand

Mars Incorporated has completed its acquisition of the Iams and Eukanuba pet brands from The Procter & Gamble Company in Australia and New Zealand. This follows an agreement announced by the companies earlier in 2014 and receipt of all necessary regulatory approvals. Mars has already acquired Procter & Gamble's petfood business in North America, Latin America and other select countries.
The Iams and Eukanuba brands will be part of Mars Petcare, joining brands Pedigree, Whiskas, My Dog, Dine, Optimum, Royal Canin, Nutro and Advance. The move is a strategic addition to the company's pet care portfolio that will enable Mars Petcare to meet the needs of more customers and pets in Australia and New Zealand, said the company. "Owning a pet is an important part of many people's lives in Australia and New Zealand—there are over 8.5 million pet cats and dogs," said Sylvia Burbery, general manager Australia, Mars Petcare. "Pets are an essential part of society and provide invaluable support in facilitating human interaction, social connections and providing companionship. Iams and Eukanuba are great products and are a welcome addition to our petfood offering. They complement our existing brands and will help us better meet the needs of our much loved pets."

P&G sells Europe petfood brands to Spectrum Brands

Procter & Gamble Co. (P&G) is selling its remaining petfood business to Spectrum Brands Holdings Inc., as the company plans to focus on its main home and personal care businesses. The transaction includes P&G's Iams and Eukanuba brands in most of Europe.

P&G completed the sale of about 80% of its petfood business to Mars Inc. in August 2014, including the Iams, Eukanuba and Natura brands in North America, Latin America and other select countries. Mars also exercised the option to purchase P&G's petfood business in some parts of Asia Pacific, Middle East and Africa.
A.G. Lafley, CEO of P&G, is cutting costs and focusing on the company's leading brands. He said P&G will divest or discontinue as many as 100 brands over the next two years, leaving 70 or 80 that account for more than 95% of its profit. Spectrum, whose pet care brands include Tetra and Furminator, currently has pet care sales of about US$600 million per year.
The transaction is expected to close in 2015.

P&G expected to remain in pet supplies sector in 2014

Procter & Gamble (P&G) is not expected to exit the pet supplies sector in 2014, according to Damian Shore, analyst at market research institute Euromonitor International.

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Notwithstanding the negative sales trend in 2013, when the company had to instigate product recalls in the US for its brands Natura (in the first quarter) and Iams and Eukanuba (in the summer), the company achieved annual growth rates of 2% between 2008 and 2013, according to Euromonitor. This was more than in the home care field and no worse than in the beauty and personal care segment.
In the US, according to Shore, P&G remains a strong premium brand with a market share of 19% in 2012. It needs to gain ground in emerging markets such as Latin America and eastern Europe.

Recent petfood recalls may hurt P&G's pet care division revenue

Procter & Gamble's pet care division recalled petfood products in both its Natura Pet Products line and its new Iams Shakeables in March, which is raising concerns about the company's quality-control issues, according to reports.
On March 18, P&G recalled four of its Natura petfood brands for potential Salmonella contamination in dry petfood, and shortly after, the company recalled Shakeables turkey and lamb pet treats. Some experts predict the recalls will likely hurt the already struggling company's revenues. Since a 2007 recall due to melamine was linked to hundreds of pet deaths, P&G's market share has fallen from 12 percent to 10 percent. 

RECALL: P&G recalls Iams cat food in Colo.

P&G Sunday recalled a small number of Iams Proactive Health Indoor Weight & Hairball Care dry cat food bags, which were recently sold in one or two Loveland, Colorado, stores because of Salmonella concerns.
The recall currently is limited to Iams Proactive Health Indoor Weight & Hairball Care cat food sold in blue 6.8-pound bags, with a code date of 02304173 (B1-B6), and a UPC number of 1901403921.
Pet owners who purchased the recalled cat food should discard it and contact P&G at 800-862-3332 for a replacement product.

Eukanuba brand awarded 'Superbrand' status in three markets

Proctor & Gamble Pet Care's Eukanuba brand was recognized with “Superbrand” status in the three markets of Croatia, Hungary and South Africa.
The award honors a market’s strongest brands for exceptional achievements, excellence in branding and outstanding credibility.
“The 'Superbrand' status will help us to create an even more discerning brand identity in the three markets,” said Richard Pistori, P&G Pet Care commercial director for central and eastern Europe, the Middle East and Africa.