New Zealand raw dog food manufacturer K9 Natural is seeking to raise US$2.5 million from new investors.
The Christchurch-based company says it has grown from a small business with US$650,000 in sales to US$5 million turnover and to 22 employees in the past three years through an export focus to main overseas markets in the United States, Canada, Japan and Hong Kong.
K9 says it was breaking even, and aims to raise sales and lower unit production costs to grow profitability. K9 says it would use a small portion of the US$2.5 million to invest in the factory, but most of the money would be used to drive sales by setting up a team in the North Island and in the US, developing the company's website, and probably employing a full-time social media staff member.
K9 Natural was formed almost five years ago by police dog handler, Geoff Bowers, and Bruce Mayhew. Bowers and Mayhew, along with chief executive, Calvin Smith, and chairman, Chris Stewart, currently each own a 25% share in the company.
While cat trends continue, the pandemic has added to overall slow-growth treatment of the cat food market.
Premiumization and humanization, as well as automation, fueled continued operation growth in spite of the COVID-19 pandemic.