Special Dog Co., the sixth largest pet food company in Brazil, according to Triplethree International, is investing US$1.54 million in a new distribution center in Extrema, a southern region of Minas Gerais state, reported local press sources.
The facility has an area of 7,000 square meters to distribute 600 tons of pet food per week, delivering logistical efficiency to the company’s operations in Minas Gerais and Rio de Janeiro, as well as expanding its capacity in the Espírito Santo area.
Special Dog has another distribution center in Curitiba, which moves more than 2,400 tons of pet food products per month.
According to the article, the investment reinforces Special Dog’s distribution operation capacity, which is fundamental to leading the market. The company has a fleet of 280 trucks and employs 1,600 people, of which 400 workers are the sales force. Special Dog leads the market in São Paulo and Paraná, while it is third in Minas Gerais.
The company produces 26,000 tons of pet food per month, most of which stays in Brazil, as only 1% is exported to Uruguay, Paraguay, Bolivia and Chile. In 2022, the company earned revenues of about US$370 million, which represents growth of 25% compared to 2021, revealed a press source.
According to Triplethree International, Brazil’s pet food infrastructure surpasses that of Mexico and Argentina, the second and third largest markets in Latin America. Yet the Brazilian pet food market is behind in terms of pet food penetration into pet owners’ homes and portfolio diversification.
Wet pet food, for example, is not as popular in Brazil as in neighboring markets. And, if caloric penetration were to increase similarly to that of Argentina, the Brazilian market could add 1 million tons of pet food to its current annual consumption of 3.8 million.
The top 10 pet food companies in Brazil have large production capacities, Triplethree reports. For instance, producing 200,000 tons of dry dog food is not rare in that market, but rather a necessary condition to be a market leader.
Iván Franco is the founder of Triplethree International and has collaborated on hundreds of research projects for several consumer goods industries. He was granted the Global Consultant of the Year award by Euromonitor International and authored the book 17 Market Strategies for Growth (in Spanish).
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