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| NexPet expects to launch its first private-label dog kibble for adults and puppies to independent pet stores this spring. (Photo courtesy of NexPet) |
NexPet, an independent retailers’ co-op headquartered in New York City, expects to launch its first product, a private-label dog kibble, to its members and other independent pet stores this spring.
In the works for about two years, NexPet started a new company to produce the product: Grandma Mae’s Country Naturals LLC. Thirty-five retailers also invested in the company and agreed to certain “volume commitments” for the product’s launch, according to Barry Berman, NexPet’s founder and president.
Berman said this new business model will give independent retailers an advantage by offering them a brand to call their own.
“This will be a co-op and retailer-owned food,” Berman said. “The reason retailers invested in the food is not only that they liked the formula but that they’re concerned that any brand that is focused on the independent could switch strategies to discounters. Many of them feel there has been a gradual leakage of brands from independents … to opening up to chains, discounters. Because NexPet is a co-op of independent retailers … We couldn’t do that.”
He further emphasized the point, saying, “Many retailers have been pushing food for many years but they don’t really have a relationship with that company. They’ve been building brands and then someone goes and sells it for $25 million 10 years later.”
The dog food will fall into the “moderately high-end” premium category with a “holistic” angle, Berman said.
It will initially be available to retailers in the Eastern and Midwest United States, which is the same business model NexPet’s co-op followed – adding West Coast members several years after its founding.
Berman said that about 40 retailers will carry it on day one of the launch, but he declined to specify the volume of its initial production run. <HOME>
Posted March 17, 2008, 11:30 a.m., EST