Blue Buffalo pet food sales grew by 11% in fiscal year 2019 (FY19) to reach US$1.43 billion for the General Mills owned brand. General Mills’ pet segment operating profit hit US$268 million in FY19. Mass market and e-commerce retail channels fueled Blue Buffalo sales growth in FY19. However, pet specialty retail sales dropped for the General Mills owned pet food company. General Mills executives disclosed Blue Buffalo’s financial information for Q4 FY19 during a webcast on June 26.
Blue Buffalo sales by retail channel in FY19
Some food, drug and mass market (FDM) retailers have sold Blue Buffalo for more than 12 months now. In these stores, Target, Kroger, Albertstons, Publix, Meijer, HEB, Giant Eagle and Hy Vee, sales Blue Buffalo pet food grew 29% comparing the fourth quarter of FY18 to Q4 FY19. Market share gains accompanied that growth.
E-commerce sales and market share of Blue Buffalo also increased. Blue Buffalo e-commerce retail sales grew 29% in FY19. On the other hand, pet specialty sales fell by double digits along with market share declines.
Overall Blue Buffalo performance in Q4 FY19
In Q4, Blue Buffalo net sales hit US$406 million representing 38% growth. The pet food brands’ segment operating profit increased by 82% in the fourth quarter due to strong volume growth and a positive price/mix. Segment operating profit reached US$110 million in Q4 FY19.
General Mills and Blue Buffalo financial information was presented on a pro forma basis.
History of General Mills and Blue Buffalo in the pet food industry
In February 2018, General Mills and Blue Buffalo Pet Products entered into a definitive agreement under which General Mills acquired Blue Buffalo for approximately US$8 billion.
In August 2017, Blue Buffalo began selling in four FDM retailers: Target, Kroger, Publix and Meijer. General Mills purchased Blue Buffalo in February 2018.
In March, Blue Buffalo executives announced that they may steer the pet food brand’s product mix towards wet pet foods and treats as the company further expands in the food, drug and mass market (FDM) retail channel.
