Tracking Pet Startups
& the Pet Tech Industry
|
|
💰 Central Garden & Pet wants to invest in pet startups
Central Garden & Pet, a provider of pet supplies, announced that it has created a $20 million venture fund to invest in startups in the pet and garden industries.
The fund, called Central Ventures, is looking for early-stage North American companies that focus on: 1) health & wellness, 2) sustainability or 3) digitally connected products and services.
With the move, the company will join Mars Petcare and Purina as corporate venture capital investors. Mars and Purina have built pet care startup ecosystems that include pitch competitions and business accelerators.
California-based Central Garden & Pet rang up $2.7 billion in sales in 2020. The company owns over 65 brands, including Nylabone dog chews and Earth's Finest cat litter.
|
|
Do you have a friend or colleague interested in the pet industry?
Please share this newsletter by clicking below.
|
|
|
📈 Chewy continues explosive growth
Online retailer Chewy reported sales of $1.7 billion for the third quarter, an increase of $550 million from the same period last year.
The company added 1.2 million customers in the quarter, bringing its total customer base to almost 18 million.
Autoship, a feature that allows customers to schedule regular deliveries of pet supplies, represented 69% of sales.
Chewy is making progress in its pet health segments. Chewy Pharmacy, launched two years ago, is expected to generate over $500 million in sales this year, making it the largest e-commerce pet pharmacy in the US.
Connect with the Vet, its new telehealth platform, has now been rolled out to 47 states. This service is free for customers enrolled in Autoship and allows for veterinarians to offer triage advice and make referrals to local vets and emergency clinics.
|
|
📰 Other News
- Petco, operator of more than 1,500 pet stores in the US and Mexico, has filed to go public on the Nasdaq under the symbol "WOOF." For the nine months ending Oct 31, the company reported sales of $3.58 billion. The private equity owners, CVC Capital Partners and Canada Pension Plan are hoping for a $6 billion dollar valuation, which would provide a nice return on their $4.6 billion purchase price in 2016. Since its founding in 1965, Petco has had several owners and has been publicly traded twice before.
- Pet Supplies Plus, the third largest US pet retailer, is up for sale. Its owner, Sentinel Capital Partners, purchased the company in 2018 and expects to triple its investment with the sale.
- Pooch Paper, a startup that makes sustainable dog waste bags, recently appeared on Shark Tank. The company struck a deal with Mr. Wonderful, giving him a $1 royalty on each sale in exchange for $250,000.
- Smucker's is selling its Natural Balance pet food business to Nexus Capital Management for $50 million. Natural Brands had sales of $220 million in the last fiscal year.
|
|
|
|
|
