By Eve Adamson

In this final installment of our three-part series about some of the movers and shakers who helped a fledgling industry spread its wings and take off beyond anyone’s dreams, we talk to a handful of industry professionals from the Midwest and the West Coast.  How did they get started in the pet industry, what was the industry like back in the day and how have things changed? We talked to former distributors, retailers and importers who have seen it all, including the way their own professions have changed in a changing world.

Meet the Experts

Pete Peterson

Pete Peterson began as a wholesale distributor in Oak Park, Ill., after serving as a fighter pilot in World War II. In 1946, Pioneer Pet Supply hired Peterson as a truck driver. Peterson worked his way up to manager and, finally, part owner. 

In 1958, Peterson moved to Miami to open Peterson Pet Supply, a wholesale distribution center. He sold the business in 1977 and spent a year in England before moving to Boulder, Colo., where he started two cash-and-carry wholesale warehouses in Seattle and San Francisco. In 1979, Peterson sold the Seattle business and moved to San Francisco.

From California, he opened Peterson Amerpet in Miami. Peterson sold Herbert Amerpet in 1992 and retired in 1997, but both his sons, Michael and John Peterson, work in the pet industry.

Bob Krause

Long before Bob Krause became a retail owner, he was a reptile, tropical fish and bird hobbyist and breeder. Krause sold animals to local pet stores, then worked for four different retail stores for several years in the late 1960s. He almost opened a franchise, but decided to start his own business instead.

Noah’s Ark Pet Center in Elk Grove Village, Ill., opened in November 1971. The 9,200-square-foot store with 11 employees advertised as “The World’s Largest Pet Center.” Krause eventually opened 23 retail stores. He also started Napco Distributing Co. and Napco International.

In 1985, Krause purchased Pets International, an import commodity pet supply company with the brand name Super Pet. Krause transformed that business into a manufacturer of innovative small-animal products. Twenty years later he sold the company to Central Garden and Pet, but still works for that company and says he plans to continue as long as he has fun.

Violet Ebers

Violet Ebers began working at Pioneer Pet Supply in Elk Grove, Ill., in 1960, in the accounting department. She worked at Pioneer until 1972, when she married one of the Pioneer buyers. They moved to California and bought Chris Ginn & Associate Pet Supply, a distributorship in Lakewood that they later relocated to Downey, Calif. They opened a second branch in San Leandro and kept two warehouses.

During the late 1980s, Ebers was president of World Wide Pet Supply Assn. and on the board of directors for both the World Wide Pet Suppliers Assn. and Pet Industry Distributors Assn. She and her husband sold their business and retired in 1989.

Art Hopkins

Art Hopkins received his first aquarium and tropical fish when he was 10 years old and has never been without tropical fish since then. In high school he began breeding bettas, and as a college student he bought fish from Loveland Goldfish Farm in Loveland, Ohio. In 1956, Loveland hired him.

Hopkins worked for Loveland Goldfish Farm, later called Loveland Aquatics and then Loveland Pet Products, for 23 years, working his way up to buyer, sales manager, and finally vice president.

In 1979, Hopkins left the company to become national sales manager for Zodiac products in Dallas, and then soon shifted to a position as a manufacturer’s rep for both All-Glass and Marineland Aquarium Products. Hopkins opened his own business, Art Hopkins & Associates, and represented All-Glass, Marineland and others until 1993, when he took a position as national sales manager for All-Glass. Hopkins was president of the Pet Industry Joint Advisory Council from 1995 to 1996 and served on the American Pet Products Manufacturers Assn. board in the mid-1990s. He retired in 1999. 

Alyce Russell

Alyce Russell grew up in a pet store. Her parents bought Andersen’s Pet Shop in Montrose, Calif., in 1955. The store had been a fixture in the area since the 1940s. Russell’s mother groomed dogs in the shop, and Russell and her two sisters helped groom, carry bags to customers’ cars and feed puppies and kittens. 

Russell and her husband bought the store from her parents in 1979. About 10 years ago, Russell visited her local animal shelter for the first time and was shocked to witness dogs and cats abandoned by their owners. From that moment on, Russell vowed never to sell another dog or cat in her store, and today she donates much of her time to the Glendale Humane Society, where she is the director. 

Q: What changes in the industry have you found particularly interesting or significant?

Peterson:  When I started in the industry, it was very small, but like all industries, it had to change. I watched it develop from an industry centered around retail pet stores, groomers, feed stores and specialty aquarium stores into what it is today—dominated by two major retail chains.

We all know dogs are the largest segment in the industry today, and Petsmart and Petco have taken advantage of this by not selling dogs. These big chains involve the vets, the breed clubs and the shelters, but they focus on the supplies, avoiding the problems that come from selling a dog. They call it “pet parenthood.” They are being smart about it. 

Krause: I’ve seen a lot of changes in the industry, most of them both challenging and enlightening. One of the biggest is, of course, the new players, the Petsmarts and Petcos that have sophisticated the industry. This new direction has forced the whole industry to become more professional, both in knowledge and in the quality of the products.

Vendors that were borderline are no longer in business, and those doing a good job are doing a darned good job now. We have a much more competitive landscape today, not only because of the superstores but because of the professionalism coming into our industry from other industries like the grocery, manufacturing and housewares industries. They are putting a lot more into our industry now as more people recognize that the pet industry is strong and healthy.

Ebers: I find the cyclical nature of the pet industry particularly interesting. For instance, birds were very popular for a while, then that died down. Aquatics became super important, then that died down.

I remember back when the manufacturer handled sales and discounted to whomever they wished. Then along came the manufacturer’s rep. They did a wonderful job representing the products and making it a lot easier for the distributor to buy merchandise. They were everywhere. Now they are consolidating and you don’t see so many again. It all comes back around.

I’ve also seen a big rise in technology. At Pioneer, we had these huge computers in a special room and you had to worry about keeping the temperature correct for the computers. Chris Ginn was among the first to use personal computers. We had our accounts receivable, payable and our inventory on computers two or three years before anyone else. We had all our information on these big round disks, and you had to have someone come in and actually build and install all your software. Today, of course, it is even faster and easier.

Hopkins: In just about every phase of the industry, there have been extremely great technology improvements. I remember when aquariums were made with stainless-steel frames and slate bottoms. In the early ‘70s, they started making aquariums completely out of glass.

Lighting has improved tremendously, as has the quality and variety of stands that are now attractive pieces of furniture. Filters used to be air-driven back in those days. Today they are motor driven and doing such a great job of keeping fish alive. Medicinals and food have improved, too. It’s easier for the hobbyist to be successful, even with saltwater fish.

Russell: The pet store has changed a lot. We used to have a refrigerator full of fresh horse meat, which people would feed their dogs and cats. We had baby chickens and baby ducks, and when my dad took over the store, he had a lot of exotic pets. That used to be very popular. I grew up with monkeys—rhesus, macaques, spider monkeys, marmosets, capuchins—and we also carried armadillos, anteaters, otters, hedgehogs, even those little kangaroos.

My dad bought the animals from this man who would drive up in an old beat-up station wagon filled with animals, like a traveling circus. Today, however, people are more aware that most of these animals are not happy being domesticated and can be very challenging to keep. 
 
Q: How have the roles of manufacturer, wholesaler or retailer changed over the years?

Peterson: The big chains have changed the role of the distributor in a great way. They used to be our enemies when we were distributors because they don’t need us. We’ve had to be innovative, to try to figure out how to make a living. Many distributors have gone out of business or been forced to shrink. They are less of a force now.

But I don’t want to undermine the positive effect of Petsmart and Petco, because they have done a lot of important things for the industry. They take advantage of the more scientific knowledge about pets and they make pet owning easier. That helps everyone. 

Krause: Manufacturers used to be the biggest influence in the industry. They carried the biggest voice, dictating pricing, margins, and how products got to market. They would fill up warehouses with anything and everything pertaining to pets and they would say, “This is what I’ve got.  What do you want to buy?”

The wholesalers were in the middle and at their mercy. The retailer was just the little guy out there. Retailers had to accept what was handed to them. Today, it’s totally the opposite. The retailer controls those things, and the manufacturer is forced to raise the bar because if he doesn’t, he won’t be in business for long. The retailer has sophistication now, and that comes, to a large extent, from a more educated consumer who won’t just purchase a product anymore without making sure the product is going to perform. 

Ebers: When I first went to work at Pioneer, distributors functioned only in their particular area. For instance, you were a dog and cat distributor, or you were an aquatics distributor, and never the twain should meet. But through time, this changed. For instance, at Pioneer, they started purchasing imported cages from overseas. At the time, nobody did that. As a result, they had to have birds, and then they had to have bird food, bird books and accessories. You had to have everything to go along with whatever product you brought in, and then we started to see distributors with entire inventories of many different kinds of products.

I would also add that the retailer has a tough job today. The big pet stores came along, and that really hurt the small retailer because the manufacturer was selling direct to the big stores. This cuts out the distributor, and that makes it hard for a small retailer to get access to products, or to get products at an affordable price when a distributor can only work with a retailer who can buy in volume. 

Hopkins: We used to see a lot of family-owned businesses at the retail and distributor levels, but many of these went out of business or were sold to larger conglomerates. It’s a more corporate world, which of course had a lot to do with the Petsmart, Petco and Wal-Mart trend.

Also, the role of the distributor has changed very much. Years ago, distributors had to go into a pet shop or fish store and be able to explain how a filter operated, or why you should have different varieties of food and medicine. Today, it seems more necessary to have an in-depth knowledge of business rather than the products. Also, the retailer has become smarter. He’s had to, in order to exist. He’s had to make changes, and he’s had to provide as many services as he can. 

Russell: The role of the pet seller has changed because thousands and thousands of animals are euthanized every day, and the public is angry about it. I think the smart retailers are making the effort to get attached to a shelter to find homes for those animals rather than selling dogs and cats. Even if the customer doesn’t buy all the initial supplies from you, they walk away with a good feeling about you, and they will come back. Partnering with a shelter can really help business and improve a store’s reputation. It has helped my business, and it has also helped me sleep at night.

Q: What do you see for the future of the pet industry?

Peterson: I think the industry is very bright for all segments. I think Petsmart and Petco will continue to be a driving force because they are doing it right. I think we will continue to see more pet sitters and dog parks and other products and services that reflect the popularity of pets.

Krause: Dogs and cats are the lion’s share of our industry, but I think the miscellaneous pets are the exciting part. The reptiles, birds, tropical fish, marine fish and small animals are the core of the industry.

You can get a dog or a cat through a breeder, a kennel, even a neighbor or friend, but the only way most people are going to acquire an entry-level pet is through the pet store. Little Jennifer may say she wants a dog and her mom says, “Oh no, that’s too much work,” but she may bend a little and say, “Let’s get a parakeet.” That little parakeet will live nine to 10 years, and that customer may ultimately purchase three or four cages and an awful lot of food, treats and toys. That little hamster will sell a hamster cage, bedding and food and it will make Johnny happy for three years. People forget how important this is. It’s critical. It’s the holy grail of our industry.

This is also the key to the success of the independent retailer. The independents will thrive right alongside the big box stores if they find a niche. If the independents take the easy way out and start de-emphasizing the live animal, they will be facing a losing battle. You can’t fight the retail giants on dollar alone so you have to be the one to provide the good-quality live pet the consumer demands.

Ebers: I think it’s too bad that some of the nice features from the past have gone by the wayside, but that’s progress, I guess. We do so much importing these days, and I’m not sure it wouldn’t be nice to get all that back here in the States.

The most important thing I see for the future is better education and service from the wholesaler and manufacturer. The big stores are great, they are beautiful and all that, but there are a lot of small people out there trying to make a living in the pet industry. They are doing a nice job, but they need more education and better service from the wholesaler. I’d also like to see retailers working more closely with veterinarians, and I’d like to see vets getting more involved in the pet industry. I know they are busy, but the pet industry could benefit if the vets would help with education.

Hopkins: I think we’ll continue to see specialty shops focusing on different phases. There is still a place for a complete fish store, and we will certainly always need the livestock. If you have the livestock, you will sell the other products, too. 

Russell: People treat their dogs and cats like children and I don’t think that’s going to go away.  Right now, the way the world is, people are gravitating toward family and I think an animal completes the family.

People are also looking for a more holistic approach to living, for both themselves and their pets. They want to know what’s in the pet’s food, they want human-grade vitamins, flower essences, herbs. Going holistic will keep a retailer current. If we don’t move toward what the public wants as an industry, we’re not going to be here. You’ll just have the big-box stores deciding what you’re going to get for your dog and cat. The small independent has to be smart, be educated and keep moving—or we will lose.