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Buy Outs In Dogfood Industry: Mars Buying Iams And Eukanuba


sandgrubber
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To Slim Down, Procter & Gamble Sells Most of Its Pet Food Brands to Mars

Mr. Lafley set about addressing Mr. Ackman's criticisms on Wednesday, agreeing to sell most of Procter & Gamble's pet foods brands — including Iams and Eukanuba — to Mars, best known as a candy maker, for $2.9 billion in cash.Since A. G. Lafley returned last year for a second stint as chief executive of Procter & Gamble, investors have been waiting for him to make a big move. blah blah blah ... streamlining the company ...

Another possible deal for Procter & Gamble could be the sale of the remainder of its pet food business. The company said it would sell the remaining 20 percent of that unit to Mars or another buyer, which could fetch $700 million.

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Mars, one of the largest private companies in the country, is best known as a confectioner, the maker of M&M's, Snickers and Twix. But the company also has a robust business selling food for cats and dogs. This is the biggest purchase for Mars since its $23 billion acquisition of the chewing gum company Wrigley in 2008. Mars has annual net sales of about $33 billion.

Its stable of pet food brands includes Whiskas cat food and the Pedigree and Royal Canin pet food lines.

If approved, the deal will give Mars 20 percent of the United States market for cat and dog food combined, up from its current 13 percent. But it will still be well behind Nestlé, which has 50 percent of the market with its popular Purina brands.

In dog food alone, the deal will make Mars somewhat stronger, giving it control of 28 percent of the country's dog food market, up from 19 percent.

Source: http://dealbook.nyti...type=blogs&_r=1 Spotted on Terrierman blog.

Edited by sandgrubber
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It's not my favourite of the 'premium' foods but I hope the quality doesn't drop, they've already got a few people off side after changing their country of manufacture which seemed to result in some ingredient changes that turned some pets off food they once liked...

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It's not my favourite of the 'premium' foods but I hope the quality doesn't drop, they've already got a few people off side after changing their country of manufacture which seemed to result in some ingredient changes that turned some pets off food they once liked...

Given Mars is historically a candy manufacturers, I wouldn't expect attention to nutritional value, as opposed to the bottom line. Look for more product differentiation with price elevation for those who are willing to pay, as in the expensive breed-specifics from Royal Canin.

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Guest Wildthing

Proctor and Gamble were the only pet food manufacturer that donated food to individuals in the rescue business. Other companies, if you aren't a registered charity, don't bother wasting your time asking, you are lucky if you get a reply. I am speaking from personal experience.

I will be watching the price closely as I use Royal Canin Baby Cat and Adult biscuits.

I have not heard of the cruel testing done by IAMS Would like to know though!

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Nothing has been announced yet that it is also in this market and is subject to regulatory approvals if it is ie market power tests.

It's by no means a done deal.

Market power tests aren't likely to be a problem with the acquisition leaving Mars a distant #2 to Nestles.

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A tad off topic but I have found a good commercial dry dog food put out by VIP called Nature's Goodness and is an Holistic blend, 3kg bag is approx. $15 in Coles and Woollies and when on special drops to around $12 they do make a 7kg bag but haven't yet found it in the Canberra/Qbyn area, my dogs loves it.

Maree

CPR

post-3265-0-81260500-1397341746_thumb.jpg

Edited by keetamouse
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Nothing has been announced yet that it is also in this market and is subject to regulatory approvals if it is ie market power tests.

It's by no means a done deal.

Market power tests aren't likely to be a problem with the acquisition leaving Mars a distant #2 to Nestles.

Different story in Australia to the US. Mars at the market dominant here.

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Makes good economic sense for a food manufacturer to own a pet food business. All the old/spoiled/out of date human food can go into the dog food. They can then make money out of it, instead of throwing it out. And there is no checks on what is in dog food.

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That is actually really incorrect for the pet market in AU. The main players in this market all follow the Australian Standard and AAFCO standards. And all are audited annually by independent auditors - so lots of checks. Never mind the whole PR piece - why would a company risk it's entire business reputationally for the sake of what it puts into dog food.

And food companies don't have old spoiled or out of date food lying around...why would they??

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That is actually really incorrect for the pet market in AU. The main players in this market all follow the Australian Standard and AAFCO standards. And all are audited annually by independent auditors - so lots of checks. Never mind the whole PR piece - why would a company risk it's entire business reputationally for the sake of what it puts into dog food.

And food companies don't have old spoiled or out of date food lying around...why would they??

Mars mostly markets confections, which wouldn't go very well in dog food.

USDA and FDA both regulate pet food manufacture. They probably go pretty light on inspections, but I don't think recycling unsold human food would survive as a regular practice.

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That is actually really incorrect for the pet market in AU. The main players in this market all follow the Australian Standard and AAFCO standards. And all are audited annually by independent auditors - so lots of checks. Never mind the whole PR piece - why would a company risk it's entire business reputationally for the sake of what it puts into dog food.

And food companies don't have old spoiled or out of date food lying around...why would they??

Because that is more profitable.

You surely don't believe they bought dog food manufacturers coz they love liddle doggies? Or they wanted to make a bit more profit on another line?

Well, they did, but they make a lot more with the current regs.

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A tad off topic but I have found a good commercial dry dog food put out by VIP called Nature's Goodness and is an Holistic blend, 3kg bag is approx. $15 in Coles and Woollies and when on special drops to around $12 they do make a 7kg bag but haven't yet found it in the Canberra/Qbyn area, my dogs loves it.

Maree

CPR

There were a few threads about it, previously

http://www.dolforums...infree-dryfood/

Sorry link doesn't work - there have been several threads about it though in "Health & Nutrition"

Edited by Rosetta
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:confused: I'm confused by the reasoning behind any thinking that confectionary has anything to do with dog food!? Primary produce may be confectionary, but multinationals run different divisions which in practice operate independently of each other and come under scrutiny of applicable regional regulators.
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That is actually really incorrect for the pet market in AU. The main players in this market all follow the Australian Standard and AAFCO standards. And all are audited annually by independent auditors - so lots of checks. Never mind the whole PR piece - why would a company risk it's entire business reputationally for the sake of what it puts into dog food.

And food companies don't have old spoiled or out of date food lying around...why would they??

Because that is more profitable.

You surely don't believe they bought dog food manufacturers coz they love liddle doggies? Or they wanted to make a bit more profit on another line?

Well, they did, but they make a lot more with the current regs.

Of course it is about running a profitable business but that does not equate to sticking mars bars in dog food!

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Mars haven't wrecked Royal Canin. I doubt they'll stuff up a good earner in their other acquisitions. Diversification is smart business.

Confectionary sales may be waning but pet owners are spending more than ever on their dogs.

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