Diving overview:
- General Mills acquires pet food supplement brand Fela Pez. The amount is not disclosed. The acquisition marks the cereal giant’s first step into the pet supplement space.
- The acquisition is also the first for the company’s recently launched growth equity fund. The initiative is designed to help General Mills grow and scale newly acquired businesses for future integration into the company’s core portfolio.
- The acquisition allows General Mills to expand its presence in the pet sector, which it first entered with its $8 billion acquisition of Blue Buffalo in 2018.
Dive Insight:
In the cereal category continues to fightGeneral Mills is making even bigger moves in the growing pet sector.
John Parrish, General Mills’ vice president of disruptive growth, said in a statement that the acquisition of Ferra Pets will help the consumer products giant focus on the wellness side of pet food. “The pet health category is on the rise as more families want to take care of their pets the same way they take care of their own health,” he said.
The launch of a growth equity fund could help General Mills leverage its presence in emerging categories. The company’s decision to build Ferrapets before splitting into a larger business is a strong enough company to benefit from the marketing, innovation, and supply chain expertise that General Mills uses with other brands. This may indicate that you are looking to expand your business to scale.
The opportunity to include health-focused brands within the pet portfolio aligns with how General Mills wants to position itself within that category.
among them Recent quarterly financial results briefing, CEO Jeff Harmening said retail sales were flat last quarter and a challenging inflationary environment was weighing on the pet sector. The executive said Blue Buffalo’s advertising will be changed to “emphasize the brand’s simple and clear message of ingredient superiority,” including real meat as the first ingredient and no artificial flavors or preservatives. He said that
One of General Mills’ main competitors is also capitalizing on the growing pet sector.
Another major cereal giant, Post Holdings, entered the space earlier this year with its $1.2 billion acquisition of several brands, including Rachael Ray Nutrish and Kibbles & Bits. Last month, Post announced it would acquire Perfection Pet Foods, a private label and co-manufacturing pet food maker, for $235 million. Mars also has a large presence in the pet category through brands such as Pedigree and Nestlé, home to Purina and Fancy Feast.
