The similarities between HP Printersand dogs
Have you ever thought about dog and cat food?
At my house the dog had to take ‘leftovers’, as it was called. In other words, he got the same food as his owners and he lived to be very old. Now it's all different. Special dog and cat food has been developed, they are rich in vitamins and minerals, and they are natural and sustainable. It is also noticeable that the shelf space for dog and cat food in the average supermarket is larger than that of baby food. For example, in an Albert Heijn store in Haarlem, there is three times more shelf space reserved for dog and cat food than for babies (something to think about).
In the US, about $ 75 billion is spent on the colourful family members
What is also striking is the price of the more expensive dog and cat food. For example, Blue Buffalo (General Mills) is a lot more expensive in the US than a bag of breakfast cereals for humans. According to a member of the Hoofbosch team, a pet can be compared to a Nespresso coffee machine or an HP printer. The purchase of such a device is not that bad. The costs however add up for everything you have to put into it: Nespresso cups, HP cartridges or ... dog or cat food. In the US, about $ 75 billion is spent on the colourful family members (so called by General Mills). This is about $ 250 per American every year. Suppose 1 in 10 Americans have a dog or cat. Then the figures are about $ 2,500 per dog or cat every year. Add to that the fact that dogs and cats are mainly kept by so-called millennials in large cities, who spend more than average Americans, and an interesting sector is born. Hoofbosch is keen on this.
Since the purchase of Blue Buffalo by General Mills in 2018, the sales of this brand have increased by 29%
It is also remarkable that both Nestlé and General Mills are active in the field of dog and cat food, with Purina and Blue Buffalo respectively. Pet food is the smallest product category for General Mills (8% of sales). But the demand for Blue Buffalo is exploding and is now one of the eight brands that generate more than $ 1 billion in sales for the group: "As the trend of the humanization of pets continues and "parents of pets" (formerly known as "owners"), ed.) become more aware of what they feed their pets, there is a huge shift from mainstream to healthy and natural." Blue Buffalo is the number 1 in the US in that category. Since the purchase of Blue Buffalo by General Mills in 2018, the sales of this brand have increased by 29%. Turnover in this segment is expected to continue to increase by at least 10% per year in the coming years.
Some analysts have noticed that General Mills is a closely connected to Nestlé and that the strategies of both companies are very similar. Cereal Partners Worldwide was established in 1990, a 50/50 collaboration between Nestlé and General Mills. CPW has its headquarters in Switzerland (Lausanne), it has 4,200 employees, it is present in 130 markets, it has 17 factories, sales in 140 countries, and a turnover of approximately $ 2 billion. The top brands are: Fitness, Cheerios, Chocapic and Nesquik.
Latin America and the Far East are important growth markets for Häagen-Dazs
Another collaboration between Nestlé and General Mills concerns the American ice cream brand Häagen-Dazs. The American branch of Häagen-Dazs was sold to Nestlé in 2017 by General Mills. General Mills still sells Häagen-Dazs in all countries outside the US, generating a turnover of approximately $ 1 billion. Latin America and the Far East are important growth markets for Häagen-Dazs. There the ice-cream market can be calculated at almost $ 35 billion.
Hoofbosch investment fund has both Nestlé and General Mills in its portfolio.